Spending review as part of overdraft extension

wordswords

Is it normal that you have to go through your monthly expenditure and all direct debits and standing orders with a bank before they will lend you £200?

I have an otherwise good credit rating and an excellent total income figure (52k per year + 16k bonus), but First Direct seemed to want evidence of all my spending commitments before they would lend me £200.

I am on top of my financial situation, and have paid off a large credit card and a huge overdraft on my other bank account in the last two months. Because I've been directing my money towards that, a couple of times there has not been enough money in my account to fufill some regular outgoings in my account because my money has been split between two accounts and not easy to manage. So they have bounced. However they were not important things, just internet subscriptions and things that I was going to cancel anyway.

I presume that this is the reason they have decided that I am not eligable to increase my overdraft by £200 despite my high income. Is this reasonable? Can I appeal against this? Does it affect my credit rating?

Thanks

[Deleted User]

Why do you need an overdraft on that income and for such a small amount?

You have no credit rating to be affected.

It’s likely the bounced payments and the fact you’ve only recent cleared down a credit card and another overdraft (amounts??) as to why they’re refusing it.

[Deleted User]

You need to improve your money management and demonstrate that you can handle regular payments and credit commitments.

I'm surprised they've offered to review your commitments rather than just declining you, but if you want the increase, I would grab the opportunity with both hands.

[Deleted User]

wordswords wrote: »

Is it normal that you have to go through your monthly expenditure and all direct debits and standing orders with a bank before they will lend you £200?

I have an otherwise good credit rating and an excellent total income figure (52k per year + 16k bonus), but First Direct seemed to want evidence of all my spending commitments before they would lend me £200.

I am on top of my financial situation, and have paid off a large credit card and a huge overdraft on my other bank account in the last two months. Because I've been directing my money towards that, a couple of times there has not been enough money in my account to fufill some regular outgoings in my account because my money has been split between two accounts and not easy to manage. So they have bounced. However they were not important things, just internet subscriptions and things that I was going to cancel anyway.

I presume that this is the reason they have decided that I am not eligable to increase my overdraft by £200 despite my high income. Is this reasonable? Can I appeal against this? Does it affect my credit rating?

Thanks

Isn't responsible lending what people want? You have already (I assume) used your default £500 OD you get with FD, have shown you can't manage your money by bouncing payments and now you want your bank to just hand you £200, no questions asked?

The fact you ran up a huge overdraft on another account will be red flags to them too.

I say good on FD for turning you down and protecting you from yourself. It also saves you making an irresponsible lending post in a few months, where if they had lent it to you, you would complain they "forced" you into more debt.

MABLE

wordswords wrote: »

Is it normal that you have to go through your monthly expenditure and all direct debits and standing orders with a bank before they will lend you £200?

I have an otherwise good credit rating and an excellent total income figure (52k per year + 16k bonus), but First Direct seemed to want evidence of all my spending commitments before they would lend me £200.

I am on top of my financial situation, and have paid off a large credit card and a huge overdraft on my other bank account in the last two months. Because I've been directing my money towards that, a couple of times there has not been enough money in my account to fufill some regular outgoings in my account because my money has been split between two accounts and not easy to manage. So they have bounced. However they were not important things, just internet subscriptions and things that I was going to cancel anyway.

I presume that this is the reason they have decided that I am not eligable to increase my overdraft by £200 despite my high income. Is this reasonable? Can I appeal against this? Does it affect my credit rating?

Thanks

I thought things had changed since I left them in the 1990's. This was the reason I left them because I wanted a small overdraft and they wanted to go all through my expenditure. After 20 minutes told them not to bother with the process and I closed the account.

ndf9876

When I was a First Direct customer, any credit application was thrashed over with a fine-toothed comb - I remember going through every single transaction on a bank statement with them (over the phone) for what I seem to recall was a credit card - might have been an overdraft - I don't recall the outcome of the conversation, I think I was accepted for whatever product it was but I'm going back 10 or so years!