First Direct can give me a £1000 overdraft but Halifax won't even give me £300?

MABLE

Jlawson118 wrote: »

Hahaha, you're right, I do take it personally! :rotfl: Although I only really started applying for credit back in January/February because I thought I might as well start building it now and in a few years time I may look at getting a mortgage and that it might help. The first few rejections didn't bother me and I didn't take it personally, but when I have one of Lloyd's Bank's biggest credit cards, and then Halifax won't allow me the Clarity card or even an overdraft or anything, that's when I get a bit confused about it and do take it personally, because what they offer, I have better with other banks anyway.

EDIT:
Wow I just applied for a Barclaycard who straight up gave me a £3500 credit limit! My Lloyds and Aqua are nowhere near that

I have the Lloyds Avios card with a £15k limit and always get good promo offers. Latest one 1.5% fee and 0% percent for 14 days.

However I have the Halifax Clarity card and they offer me 3 or six months 0% fee but the interest rate of 25.9%. You would have thought being part of the same organisation I would have got a better deal than that. As they say it is what it is.

Jlawson118

colsten wrote: »

I am afraid to say, but you have been had.

You were conned by First Direct - a loan is cheaper than an overdraft. But what's done is done. Your only way out would be to arrange a loan with a lower interest rate, or a 0% balance transfer credit card, but from what you say, you may not get accepted for any of them now as you had too many applications on your credit file now.

In addition, your total available credit is higher than what Halifax think people your age should have in debt. You may or may not agree with Halifax, but it's worth considering their position. As they know loads about money, and about people's ability to repay debts.

Don't give up - the MSE Forum is a great place for making the best out of your money. Just ask for opinions before you make your next move.

I don't think I was conned by First Direct. Their £1000 loan quoted me at around £37 interest which I think is really good, but for the charge of the overdraft that I ended up using, it was 28p.

Jlawson118

PeacefulWaters wrote: »

1. Overdrafts are expensive, usually.
2. Halifax overdrafts are horribly expensive and to be avoided.
3. One of the reasons hey declined you because your account is less than six months old.

I was wondering if there was a time limit I had to have the account before they would accept me, six months makes a lot of sense. Thank you!

Jlawson118

MABLE wrote: »

I have the Lloyds Avios card with a £15k limit and always get good promo offers. Latest one 1.5% fee and 0% percent for 14 days.

However I have the Halifax Clarity card and they offer me 3 or six months 0% fee but the interest rate of 25.9%. You would have thought being part of the same organisation I would have got a better deal than that. As they say it is what it is.

I have the Lloyds Avios card as well, only got a £750 limit on there though but I can't increase this until I've had it for six months, so hopefully in the next month or two then they will increase it. Although I usually pay it off as soon as the payments go out, so some months I've spent around £1000 or something because paying it off straight away gives me that limit. It hasn't affected my credit score or anything. I've only spent over £750 once though.
Hopefully they'll be increasing it though soon because I've nearly had the account for six months, and they don't increase until you have had it that long. I've been debating whether or not to get rid of the Avios card anyway now, but it does come in handy for abroad.
Halifax have always declined me for their clarity card

pinkdalek

Banks work differently and will have different criteria for lending.
Get over it.

MABLE

MABLE wrote: »

I have the Lloyds Avios card with a £15k limit and always get good promo offers. Latest one 1.5% fee and 0% percent for 14 days.

However I have the Halifax Clarity card and they offer me 3 or six months 0% fee but the interest rate of 25.9%. You would have thought being part of the same organisation I would have got a better deal than that. As they say it is what it is.

Obviously should have read 14 months not 14 days. Silly old me!

NotRichAtAll

almost a carbon copy of the last thread

https://forums.moneysavingexpert.com/discussion/5520630

Maximum_Saving

Due to your age your car insurance was very expensive. First Direct have pushed you into an overdraft. A loan wouldn't be any cheaper. Halifax can be pricey for an overdraft. Try to limit the number of credit applications to help your credit rating. This forum has lots of money saving tips on it. Good luck.

Jlawson118

Maximum_Saving wrote: »

Due to your age your car insurance was very expensive. First Direct have pushed you into an overdraft. A loan wouldn't be any cheaper. Halifax can be pricey for an overdraft. Try to limit the number of credit applications to help your credit rating. This forum has lots of money saving tips on it. Good luck.

Yeah the car insurance being so expensive was to be expected anyway, but I have to start somewhere with it right? Hopefully next year with my first years no claims and maybe with turning 21 then it'll go down quite a bit. But I'll put some money aside before next August when the renewal is due and be prepared.

But yeah I plan to not apply for any credit now, I don't really need any more anyway. I've decided I'm moving my accounts over to Barclays because their extra services seem to offer more than than Halifax's do.