How often do Halifax review overdrafts?

CDaniels1987

I have only last week increased my overdraft to £3000 from £100, I was extremely surprised that it was accept due to poor credit score from past debts.

However I am worried to even use it, just incase they randomly take it off me.

How often do they actually review the overdraft? I will more than likely go into it by about £1000 over xmas/january due to the way I get paid, until I get my bonus in February, where it will then be cleared and will more than likely only be used sparingly.

I would hate to go into the overdraft, for them to then take it away with me and be back in debt again in an unauthorised overdraft.

YorkshireBoy

Overdraft facilities are constantly reviewed, so there's always the danger of them calling it in.


Is there anything, either in your relationship with them or on your other accounts held elsewhere (which they'll see from the monthly feeds they take from the CRAs), that may spook them?


That said, is the account you have the one that charges between £1 and £3 per day for using the facility? If so, that's a very expensive way to fund Xmas! Maybe you need to find an account that charges interest, rather than a daily fee, for overdraft usage...or better still, find a way to budget better?

CDaniels1987

Thanks for your reply,

I have always kept the account in good order, I have also been debt free for about 7 months now which I assume is the reason I have been accepted.

I have an ultimate reward account so it's fee free for £300, the only reason I'll be going into it is because my pay dates are so far away due to Xmas. Although I probably won't go into it by £1000, however even if I did that's not even half so surely won't be looked at bad especially as I have only just been accepted, and won't be in it for very long, it's not as if I will constantly be in it.

I guess I'm just more paranoid than I used to be due to the debt I got into years ago!

YorkshireBoy

CDaniels1987 wrote: »

I have an ultimate reward account so it's fee free for £300

I don't have that account (I have plain Reward accounts), but I think you'll lose the £5 Reward if you use the O/D facility?

Thrugelmir

Normally annual reviews. Overdrafts of course are repayable on demand. So best used wisely.

CDaniels1987

Thanks, just want to make sure that I am going to be ok going into it over the next few months, obviously there will be money paid in there as well on a monthly basis as usual, however I maybe in the overdraft until early Feb time.

Oh one last thing, do they keep credit checking? or is it just a case of initial credit check for the overdraft, and then they just check your account each time they review to ensure your keeping it in good working order.

YorkshireBoy

CDaniels1987 wrote: »

Oh one last thing, do they keep credit checking? or is it just a case of initial credit check for the overdraft, and then they just check your account each time they review to ensure your keeping it in good working order.

Read the bracketed text in my reply above (post #2).


I'm not sure if Thrugelmir was generalising above re the annual 'formal' review some organisations make, or they work for Halifax/BoS/Lloyds, but I can assure you that O/D facilities are continuously reviewed based on the aforementioned monthly feeds...otherwise why do they take (and pay for?) them?


Manage your account well, and manage other reported accounts well, and the chances of them pulling it are slim...especially over such a short duration and having just increased it.

CDaniels1987

Many thanks.

wiseshark

CDaniels1987 wrote: »

I have only last week increased my overdraft to £3000 from £100, I was extremely surprised that it was accept due to poor credit score from past debts.

However I am worried to even use it, just incase they randomly take it off me.

How often do they actually review the overdraft? I will more than likely go into it by about £1000 over xmas/january due to the way I get paid, until I get my bonus in February, where it will then be cleared and will more than likely only be used sparingly.

I would hate to go into the overdraft, for them to then take it away with me and be back in debt again in an unauthorised overdraft.

I'm curious as to why you increased your OD from £100 to £3000 and yet admit, "will be more likely to go into by about £1000"

I could understand if you had increased it to around £1500-£2000 to cover anything unforeseen or unexpected and I suspect that Halifax were very happy to give £3000 OD in the hope they could make £90 a month or more from you after considering you a good or low risk.

CDaniels1987

wiseshark wrote: »

I'm curious as to why you increased your OD from £100 to £3000 and yet admit, "will be more likely to go into by about £1000"

I could understand if you had increased it to around £1500-£2000 to cover anything unforeseen or unexpected and I suspect that Halifax were very happy to give £3000 OD in the hope they could make £90 a month or more from you after considering you a good or low risk.

Mainly as a safety net in the future, I have always been told it is good to have an overdraft just incase.

Yes I may only be going into it a bit over the next few months, but then after that it will only be used as a safety net if and when needed.

I just typed on that number thinking I wouldn't get it and they would just possibly offer me something lower.

JuicyJesus

I can more or less assure you that there will be cheaper ways of borrowing £1000 for a few months than an overdraft. Super balance transfer credit card at 0%, for instance, or just putting things on a 0% card.