switching banks with an existing overdraft

luke87

Hi all. My overdraft charges have exceeded what I can afford. Does anyone know if I can switch to a new bank, building society that will take on the overdraft and I pay their charges instead. Regards Luke.

meer53

No problem. As long as your new bank will give you the same overdraft.

jonesMUFCforever

....Before you transfer though - think what has caused the charges in the first place - eliminate or reduce them by earning more than you spend - I know this sounds simple but it is true.
Make a list of all outgoings - cut out what you really do not need and move on from there.
If you continue to accrue charges then you will be transferring again soon.

Archi_Bald

jonesMUFCforever wrote: »

If you continue to accrue charges then you will be transferring again soon.

provided your application will be accepted

Mr_Goodkat

luke87 wrote: »

Hi all. My overdraft charges have exceeded what I can afford. Does anyone know if I can switch to a new bank, building society that will take on the overdraft and I pay their charges instead. Regards Luke.

Who is your current bank and what are the current charges?


Are you within in an authorised overdraft or often slipping into unauthorised ones?


How is the rest if your payment history - current accounts, credit cards, loans, mortgages etc.


It is possible to move your account and overdraft if another bank is willing to take you on as customer and give you an overdraft of at least that level - Nationwide Flex Direct does offer 12 month interest free OD subject to acceptance so could buy you some breathing space to pay it off.


You need to address why you are in your overdraft and reduce spending / increase income. OD's are not long term lending solutions they are very expensive and repayable on demand.


There are lots of ways to make money out of banks rather than them making money out of you e.g. Halifax Reward Fivers, Santander cash back on direct debits and high interest paying current accounts.


Good Luck

CLAPTON

luke87 wrote: »

Hi all. My overdraft charges have exceeded what I can afford. Does anyone know if I can switch to a new bank, building society that will take on the overdraft and I pay their charges instead. Regards Luke.

With virtually no facts it's difficult to say but probably not.

What do your credit files say about you
what debts do you have
how big is the OD
how long have you lived in your OD
what fees/interest are you currently paying on the OD
what is your income and employment status