Natwest won’t increase overdraft

m-holland

I dont think "fee free" and "for which I pay £20" go together

sal_III

Have you called them and asked the reason for the "computer says NO"?

Most likely it's the fact that you are dipping into it on a monthly basis which has them worried.

Terry_Towelling

I think a change of mind-set is needed here. An overdraft (in my opinion) should not be regarded as a safety-net even if it can be used that way. A contingency fund for shortfalls would be an idea, but even better, would be to understand the structure of your finances and why you are using your overdraft every month.

The way you describe things, it sounds like you are going overdrawn each month by about the same amount. This suggests you have just about enough money each month to cover your outgoings but there was possibly something in the past that created your deficit starting position. This is what you need to iron out before you can move forward.

Could you not try to reduce your expenditure for a month or two to restore your finances to always ending the month in credit? You might then find you can maintain that reduced spending level which will, in time, allow you to build a contingency fund to act as your safety net.

In the meantime, why don't you use a credit card to defer some (or as much as you can) of your monthly spending. This creates a bit of a buffer in your current account (as long as you don't spend it) and may allow your cash-flow to improve such that you stay in credit. You will of course have to clear it in full to make things work.

Obviously if you already have card debt that is not being cleared each month, things are going to be a little more tricky - but you haven't mentioned any other long-standing (or growing) CC debts, so I'll assume there aren't any.

Like I said, it is all about adopting a different mind-set so that you don't regard your overdraft as a safety net.

pinkdalek

What is your current credit status like, you do not mention what if any other credit commitments you have, how much you owe, if you are in arrears or on any payment plans. Also how has your account been conducted with the bank?
You don't specify why you need the extension apart from safety net. Have you no savings in place, or do you or can you save regularly each month, look at your spending patterns maybe you need to look at your spending patterns, can you save money anywhere, cut back etc?

If you don't have any other credit commitments eg mortgage/rent/car/loans/credit cards/catalogues etc why not look at getting a credit card instead to build your credit rating, use wisely and don't run up a debt, keep to less than 50% of your credit limit and this may help you.

Or simply another option, apply for a current elsewhere see if you can get a larger overdraft with them and switch and tell Nat West to shove their bank account.

Willing2Learn

pinkdalek wrote: »

… If you don't have any other credit commitments eg mortgage/rent/car/loans/credit cards/catalogues etc why not look at getting a credit card instead to build your credit rating, use wisely and don't run up a debt, keep to less than 50% of your credit limit and this may help you.

I don't agree. If the OP is going to use a card, then the full statemented balance needs to be paid off in full each month, otherwise the OP will end up paying interest.


@ Frontera2,

As suggested by Terry, it is advisable to change your mind-set and to move away from thinking of your overdraft as a safety net. If you are budgeting correctly, then you will ideally have a six-month buffer saved up as an emergency fund. You can then use the emergency fund as a safety net, should the need arise.

pinkdalek

Willing2Learn wrote: »

I don't agree. If the OP is going to use a card, then the full statemented balance needs to be paid off in full each month, otherwise the OP will end up paying interest.


@ Frontera2,

As suggested by Terry, it is advisable to change your mind-set and to move away from thinking of your overdraft as a safety net. If you are budgeting correctly, then you will ideally have a six-month buffer saved up as an emergency fund. You can then use the emergency fund as a safety net, should the need arise.

You misunderstand my post, if using a credit card yes pay off each month, use sensibly, but try not to spend over 50-60% of your limit as it looks like you are living up to and even beyond your means.

[Deleted User]

pinkdalek wrote: »

You misunderstand my post, if using a credit card yes pay off each month, use sensibly, but try not to spend over 50-60% of your limit as it looks like you are living up to and even beyond your means.

If the card is being paid off every month it won’t matter what percentage is used.

And the CRA reports will show that it balances out.

pinkdalek

!!! wrote: »

If the card is being paid off every month it won’t matter what percentage is used.

And the CRA reports will show that it balances out.

Think we can get back to helping the OP rather than trying to so pedantic? For your info it will show how much the account holder had spent each month and how much was paid off.

Back to the OP - I think you need to clarify more on your current situation as to what else is going on with your finances to explain and help you more if you want any answers, otherwise you will just get people on here spurting off in random directions as they know better.

stripeyfox

Frontera2 wrote: »

Have been wanting to increase my overdraft for a while now, mainly to provide a safety net, yet when I go into the app and try and apply I receive a message saying:

“Based on your recent account activity we are unable to offer you an overdraft increase at the moment”

I’m confused as to what this activity could be given I’ve never exceeded my small overdraft limit and pay over £2.5k into the account each month. This is my main account so all my bills etc go through it.

Any ideas? Would be great to understand what activity they don’t like so I can stop doing it!

I suppose it depends on utilisation of the overdraft. You may never have exceeded it but are you regularly using (nearly) all of it?

[Deleted User]

pinkdalek wrote: »

Think we can get back to helping the OP rather than trying to so pedantic? For your info it will show how much the account holder had spent each month and how much was paid off.

Back to the OP - I think you need to clarify more on your current situation as to what else is going on with your finances to explain and help you more if you want any answers, otherwise you will just get people on here spurting off in random directions as they know better.

Exactly.

So “utilisation” is a moot point.