Natwest overdraft increase

Relentless17

Hi everyone! New here so apologies if my post isn't in the correct place .

Anyway, in May this year I was on my online banking page and I noticed it said on one part "you are very likely to be approved for an overdraft of £250". I found this quite odd as I had previously applied for an overdraft last year for about £100 and was refused. I had also received an email telling me about arranged overdrafts as I "had incurred unarranged overdraft charges". This is something I have done regularly ever since I had my contactless debit card. I know this isn't a good way of handling money etc. and I know that banks tend to not offer overdrafts to people like me (I am unemployed and have been for a while but not getting into that)! Really strange as I thought they would hate the way I managed my account but I'm not complaining . I was wary about applying for it after being refused the first time as my financial situation was no better, in fact it was probably alot worse due to defaults etc. so I decided to try for £150 since they said £250. And they said yes! You can imagine my surprise lol!

Fast forward to today and I really wish I had gone for the £250! I am tempted to ask for an increase but I am concerned about it being rejected or even worse having my overdraft taken away from me. This is not something I would be able to immediately pay off (obviously or I wouldn't want an increase). I never have any returned payments however I do still go slightly over into an unarranged overdraft. If I apply for an increase will they perform another credit check? And also would it be likely for them to remove my current overdraft?

Any advice will be greatly appreciated but please no lectures that is what my mother is for

cakeforbrains

I'm not going to give you a lecture, because it sounds like you already know that you need to shuffle up your finances a bit. Maybe if you come over to the Debt Free Wannabe boards and post an SOA (statement of affairs) people can help you work out how to save a bit of money here and there. They are very nice over there and most of them (us) have been in your position before.

I'm afraid I don't know if the bank will credit check you again. They might just work within their own systems. Maybe you could call them and ask? I've always found Natwest to be fairly accommodating with overdrafts.

However, one MASSIVE word of warning: an overdraft is basically the only form of credit that a lender can (and often does) recall in full. They are totally within their legal rights to do this. A couple of years ago my husband and I had two £1000 overdrafts recalled within a month of each other (and I am pretty sure that going into unarranged was the trigger for that). In this way an overdraft is one of the most risky ways to borrow.

It really sounds like you need a little bit of relief from some of your bills. Come over to DFW and let us help.

MEM62

The bigger an overdraft you have the more you will use it. You will get deeper into debt and this will be the start of a slippery slope. Focus on paying it off instead.