Typical Overdraft Waiting Times

NewToTheUkAgain

Good day fellow MSE members,

I would just like to ask the question with what experience people have had, that have had to wait for overdrafts (no overdraft given at account opening).

How long did it take you to become eligible and for what amounts with which banks?

I know the typical guideline given is 6 months, but I would just like answers from actual people that have had the experience.

Again people’s circumstances will differ the outcome.

For example my sister with Nationwide waited 3 months, good salary with leaving 2000 plus after bills in the account. Overdraft accepted for £3000.

[Deleted User]

Why do you need an Overdraft?

Are you actually using it or is it just to show it as being available on your credit history?

NewToTheUkAgain

Thanks for the response, I have no requirement to use an overdraft at all, I have zero intentions on using it, however it will help my history.

NewToTheUkAgain

I also find it kind of interesting how different banks act completely different to each other, so was trying to pull together some resources of information for others that may wonder the same question

eskbanker

NewToTheUkAgain wrote: »

I also find it kind of interesting how different banks act completely different to each other, so was trying to pull together some resources of information for others that may wonder the same question

While you may find it interesting, there is very limited actual value in anecdotal feedback from those who've belatedly been granted overdrafts after initially being declined, since (as you recognise) everyone's circumstances will differ, in terms of income, account conduct, credit history/status, other products with the same bank (or others), etc, etc.

Perhaps you'll eventually get enough information to start identifying patterns by bank but you haven't exactly been inundated yet - I suspect that it's not as common a scenario as you may think....

MABLE

I use to have a £10k overdraft with Lloyds but it was very rarely used so i chopped it down to £100 because if i use it now the £100 is free of call fees and charges.

Also Lloyds is very expensive to use. Unlike Nationwide they only charge 50p a day and my overdraft facility with them is £5000 and is used now and then.

NewToTheUkAgain

Eskbanker I think your right about it most likely not being as common scenario as I had initially thought.

I wonder if banks score you internally better with them if you hold savings etc with them.

eskbanker

NewToTheUkAgain wrote: »

I wonder if banks score you internally better with them if you hold savings etc with them.

I imagine so, but of course such internal scoring algorithms and processes are kept confidential, for obvious reasons, and will naturally vary from one bank to another.

And it would be a bit of a paradox anyway, in that the more savings you have with them, the less you'd need an overdraft!

jonnygee2

I don't think any banks have mandatory waiting periods.

However, they normally use two things to assess you;

1) Your credit history and
2) Your history with them

If your credit history is outstanding I think most banks will offer on that alone. But, if it's questionable, they may wait until they have more history with you.

How long you have to wait would depend on how you use your account (would normally have to be a salaried account used for daily transactions and direct debits) and how questionable your history was. I suppose the minimum amount of data they would need would be 3- 6 months, but then again it could be forever if they never get the data they need.

NewToTheUkAgain

That’s very good points there, I guess they really need a reason not to give you one in the first place.

Mine would be limited history, however I am ticking the boxes that I can. ER, 2 x subprimes paid in full each month with 40% maximum usage, salaried and plenty saved each month. Landline and sim only.

jonnygee2

Mine would be limited history, however I am ticking the boxes that I can. ER, 2 x subprimes paid in full each month with 40% maximum usage, salaried and plenty saved each month. Landline and sim only.

Also make sure it's your main account. Unlike credit history they have a lot more data. If you transfer half the money out straight away to a different account that's going to be bad for the data. And if you are transferring excess to a savings account then do it after you salary comes in so you are always a little way from zero at the end of the month. Use the card for daily transactions.

Of course, this data will never completely override your credit history. If that's very bad, you'll need that to go up too.