Overdraft

sheep1903

I recently switched banks to Bank Of Scotland, and they gave me a £1000 overdraft, which has all been used up.

yesterday I was looking at my online banking stuff and it says that I could get a guarenteed overdraft straight away of £5000 !!!

I increased my OD by £300 last night.

I then thought...my OD interest is lower than my Credid Card interest...I could take the whole £5000, pay off my cards, then pay off the OD. easy.

But today, I went on to increase the OD, and the guarenteed limit is now only £1500 !!!!!

Why ??!!! Has anyone else noticed this ?

Do you think it might go back up later ?

[Deleted User]

Something similar happened to me when I amended my actual overdraft (down), my guaranteed amount was cut by even more. Any staff care to explain please? Much appreciated.

msaquib

Halifax is just strange bank. I don't even use my account. It showed an guaranteed overdraft 10k for at least 2 months then it changed to 3k.

M

jamesd

sheep1903, using it continuously may be why the limit has been reduced. Using it occasionally and clearing it regularly is more likely to be seen as you not having financial trouble, while using it fully may be taken the other way around and suggest to them that it's prudent for them to have a lower overdraft limit.

You might consider a personal loan instead of an overdraft since that's more appropriate and cheaper than an overdraft if it'll take a year or more to clear the card balances.