Nationwide overdraft?

nicetomeetyou

I have a nationwide flex account which I have been managing well for about 18 months, not being in a negative balance. I have had money problems in the past hence a poor credit rating. This has improved and I got accepted for a vanquis credit card and have been managing that well for 3 months. I logged on my Nationwide app and a new feature was on it asking me if I wanted a overdraft so I put £200 in and it was accepted but not confirmed yet. Do you think that they will go back on the acceptance? I have £400 a month personal allowance paid into this account a month and my only outgoing is £10 a month phone bill. The rest is disposable income.I use it as my main account but have somebody external managing my finances as I have mental health difficulties . I have a considerable amount saved up in their accounts and basically have money put into my flex account when and if needed. Do you think I’ll have any problems with the overdraft? I see it as a positive if I have a good credit rating as this is proof I can manage my finances independently and can have the appointee overturned in the future.

Is being accepted for a overdraft mean I have a good internal score with nationwide even if it isn’t that good with clearscore although it says stable.... sorry for the long drawn out question. Thank you.

Ben8282

If you were offered an overdraft and accepted when you applied, then in all probability they will not change their minds unless you can think of any specific reason why they should.

colsten

If you have a considerable amount saved up in Nationwide, or any other, accounts

1. please do not use an overdraft. It is one of the most expensive form of borrowing money. Use some of your savings instead if you need extra cash
   
   
2. speak with the person who manages your finances and ask them why they let you have savings in Nationwide. Apart from their Regular Saver, which is now coming to the end of its life, Nationwide don't have any savings accounts that pay decent interest

Can you share more about the person who manages your finances - are they from a charity or a public body? How are they managing your finances for you? How often do they talk to you about your finances?

nicetomeetyou

Thank you both for your replies.

I had a manic bipolar episode and it was deemed by social service I lacked capacity in managing my finances. Social services at county hall took control of my money and the money is hold in their accounts. I am unsure about the arrangements. I don’t think it’s in a interest account.

I got accepted for the £200 overdraft. I am managing my accounts well. I don’t have any debt. I think the vanquis credit card has helped build a better credit score for me although it’s not shown on clearscore. I think people on here are right that your credit score is meaningless as it’s all internal anyway.

I have £400 a month personal allowance paid into my nationwide account a month, out of that I only have a £10 a month direct debit, all other bills are paid out my social services account. I can asked for extra money but for big purchases, holidays and iMacs, they’ll pay direct to the company. Do think nationwide know that I get more money then £400 a month and that £400 I get is disposable income, that’s why they offered me a overdraft, would they of done it say if I get paid £400 buy mu outgoings are £400 a month?

Terry_Towelling

If you get yourself an overdraft facility and then use it, that will do nothing to improve your credit history because all lenders will see you as constantly overdrawn and struggling to manage your finances.

Of course you might be playing the long game and using this as a tactic to get your appointee to transfer more cash to you on a regular basis.

Do you imagine that will get you closer to being able to finance that £4K Omega watch without your appointee knowing? Can you perhaps understand how that sort of tactic might engender a certain lack of trust in those who are trying to ensure you don't get into a financial mess?

Ben8282

nicetomeetyou wrote: »

Social services at county hall took control of my money and the money is hold in their accounts.

If it is true that social services have transferred your money into their accounts (as opposed to it being in an account in your name requiring the permission of your appointee to access it) this is very disturbing and legal advice should be obtained as soon as possible.

nicetomeetyou

Well its been nearly one year since I first started this thread.

I now have a £1000 overdraft with Nationwide and only occasionally dip into it. On the app it gives me the option to increase it but I'm happy with what it is at the moment. I'm still unable to get credit card through NW but have a Vanquis credit card which I barely use. 

I’m currently getting £590 PA every four weeks… £147.50 a week.

My outgoings per calendar month are..

   - £47 phone bill

   - £13 for packaged current account - ie, phone insurance.. (I need to ring Nationwide and declare medical conditions to get yearly travel insurance included in this, may have to pay premium?

   - £92 loan I took out. (I took £1000 loan out, total payable back - £1101… made 2 payments so far.

   - £140 -  4/weekly for food and coffee shopping

   - £290 into my savings account - I want to build £3000 up in an emergency fund.

Plans  

 - I’m going to continue paying phone contract until Dec and pay off the full the contract, around £500. 

 - I’m going to continue payments for loan until December and then pay £300 to settle loan.

 - In December I would like my PA increasing to £150 a week - (Currently at £135 a week) so £15 a week more… Total income per 4/weekly would be £650.. I'll be able to save £500 per month.

colsten

Goodness me. Why would you want to use an overdraft if you can save £500 a month. Get rid of it so you aren't tempted to use it.

I am sure you had a good reason for taking out a  £1K loan. Your priority should be on paying that loan back asap, before you put any more into savings.

CRISPIANNE3

Nationwide's overdraft rate is now 39.9% but I understand temporary reduced to 18.9% because of the coronavirus. If you have an overdraft of £1000 and paying this amount of interest then you should not be saving anything but looking to reduce/clear the debt. 

phillw

colsten said:

Goodness me. Why would you want to use an overdraft if you can save £500 a month. Get rid of it so you aren't tempted to use it.

I would always have an overdraft but pretend like you don't.
I'd rather have a direct debit put me in an overdraft than have it fail.
The cut off for returning a direct debit is not necessarily the same for the cut off to be charged interest on your overdraft.

eskbanker

CRISPIANNE3 said:

Nationwide's overdraft rate is now 39.9% but I understand temporary reduced to 18.9% because of the coronavirus. If you have an overdraft of £1000 and paying this amount of interest then you should not be saving anything but looking to reduce/clear the debt. 

I believe that what OP meant was that they have an overdraft facility of £1,000 rather than actually a debt as such, having said "I now have a £1000 overdraft with Nationwide and only occasionally dip into it", although there is also a separate £1,000 loan, to which your repayment point would apply....