Transferring with an overdraft

MushroomMan89

When I went to university, I took a current account with Natwest, as they offered a 5 year railcard and a decent sized overdraft (for 'emergencies')

Well, now I've been out of uni for about 3 years, and I am looking to move to a more competitive current account. The problem, however, is that due to extended periods of illness I haven't managed to clear anywhere near as much of my overdraft as I'd like.

Are there banks that would, now I'm earning a regular salary, accept me with my £2000 overdraft (I'm at about -£1700 at present) and allow me the normal perks?

YorkshireBoy

Possibly...but do not ask the new provider to switch from NatWest until you've got adequate facilities in place.


When you say "more competitive", I assume you mean cheaper overdraft charges? Nationwide FlexDirect has a 0% overdraft for the first 12 months (T&Cs apply), but £1,700 at the outset might be a big ask!

colsten

What do your credit files look like? Noddle, Experian, Equifax? You should look at all three / attempt to correct any issues before deciding to apply for new current accounts.

MushroomMan89

Thanks for the advice guys, I'll probably hang tight for a couple of months until I have a little less to manage!

pinkdalek

I guess as others have suggested it may depend on your credit rating, but if another bank can offer you the overdraft you could switch.

Other options are you could manually switch yourself, and send money to your Nat West account each month to repay the overdraft. If you were looking for the cash incentives eg Halifax/First Direct to name a couple, why not open a seperate current account and switch that one using their switching service to get the offers?

Had you never considered getting a loan and clearing off the overdraft, at least that way you would have the debt cleared in a set time.

david39

If you open an account elsewhere and use that as your main account, NatWest will withdraw your overdraft facility and demand immediate repayment.
Their only security for their £1700 they are lending you is that you have a monthly salary being paid in that they can retain if you default.