Overdrafts

enthusiasticsaver

As charges on overdrafts are due to rocket within a few months your bank has done you a favour by not agreeing one for you. Why would you want one? Live within your income.

george2571

If you are very serious about wanting an overdraft then i would try NatWest as i was pre-approved with them in the application stage and got my OD when the account opened. But honestly i wouldn't recommend it it gets you in to enormous amounts of debt if your not careful, I know this, as soon as i got myself out of the huge mess i was in i had my OD removed off of both my accounts and wouldn't go near that again!

Before going for an overdraft, do see if you are eligible for any credit cards offered by the banks as i feel these are safer as long as you know what your doing and Don't max out your card

Stuart_W

Bluesapphire said:

I have been with Halifax for 8 years now and I don't even have a ten quid overdraft which is ridiculous.

I've been with my bank for over 20 years and have an overdraft of £0.00, and long may it continue. I have a credit card with them with a £9k limit, but I've never paid a penny of interest on that either (it's actually earned me hundreds of pounds in cashback over the years, making it better than interest free credit).

Short-term borrowing isn't necessarily a bad thing, as big expenses, especially unexpected ones, can be difficult to swallow (washing machine blows up, unexpected house/car repairs etc) but an overdraft is seldom going to be the best way to solve it. If you can't afford it from your regular income this month, what means you'll afford it next month? It can be the start of a continuing cycle.

A zero or low rate credit card is going to be much cheaper, or a bank or credit union personal loan, unless you get one of the completely free overdrafts, and there aren't many of those. If it's just a case of deferring payment to next payday pretty much any credit card will let you do this for free.

Take the advice of everyone else on the board and really re-evaluate that "need" for an overdraft. Shop around for your cheapest option for credit - I am pretty sure it is very unlikely to be an overdraft.

coachman12

As quoted on a similar active thread on this Forum, I am a great believer in the wisdom of having an arranged overdraft. It is a must for emergencies that require an immediate input of finance and, if your salary, pensions, etc have not yet been in to your Bank Account at the time of the month when the "emergency" arises, it is particularly accentuated.
As I have expressed elsewhere several times, the problem lies in the obscene 40% interest rates applied for normally responsible customers who make one silly error in calculation , whether as a result of the sort of emergency mentioned above or as a result of other factors. Banks caused the agonies of austerity over the past 10-15 years, the creation of Food Banks and all the rest;  and yet they are still allowed to treat customers who have been with them for decades as if they were cattle to be led to market. 
And for those who think that Banks are doing a good job, let's have a poll !!!!!

Takmon

coachman12 said:

As quoted on a similar active thread on this Forum, I am a great believer in the wisdom of having an arranged overdraft. It is a must for emergencies that require an immediate input of finance and, if your salary, pensions, etc have not yet been in to your Bank Account at the time of the month when the "emergency" arises, it is particularly accentuated.
As I have expressed elsewhere several times, the problem lies in the obscene 40% interest rates applied for normally responsible customers who make one silly error in calculation , whether as a result of the sort of emergency mentioned above or as a result of other factors. Banks caused the agonies of austerity over the past 10-15 years, the creation of Food Banks and all the rest;  and yet they are still allowed to treat customers who have been with them for decades as if they were cattle to be led to market. 
And for those who think that Banks are doing a good job, let's have a poll !!!!!

If you need to use an overdraft it is a sign that your are not in full control of your finances and you really should be working to organise your finances so that your don't need one. If something happens that you need quick access to some extra money then the first port of call should be your emergency fund which any sensible person will have. If not the second best thing is a credit card which will incur no interest if paid off by the next statement. 

Borrowing on an overdraft should be an absolute last resort and an interest rate of 40% is fair for this and ironically it is cheaper than the old set fees if you dip into it for a short period, yet people seem to think it's worse because they see a big number proceeding a percentage sign. 

Banks are not to blame for people using food banks and overextending themselves financially. I have no problems with banks because i see them for what they are and that is a business to make money (they are not a charity). I know that my financial situation is in my control and my responsibility and with this attitude i have put myself in a good position and have even made a nice bit of money by taking advantage of the banks switching offers, high interest account offers etc. 

Forest17

Hi, can anybody advice , I have lloyds bank acount 15 years , i asked 1000 times for min owerdraft and never accept. I had several payday loan for years and i was always in unarrange owerdraft . They charge me for this years 1000s pounds for this and never offer any help sortout this problem ( iam not sure if they should do) , i dont have any debts with them  . I get 660£ a month , why never accept my apply for min.owerdraft ? They can take this money back when my payday. Is better change bank ?  or ? Thanks

eskbanker

Forest17 said:

Hi, can anybody advice , I have lloyds bank acount 15 years , i asked 1000 times for min owerdraft and never accept. I had several payday loan for years and i was always in unarrange owerdraft . They charge me for this years 1000s pounds for this and never offer any help sortout this problem ( iam not sure if they should do) , i dont have any debts with them  . I get 660£ a month , why never accept my apply for min.owerdraft ? They can take this money back when my payday. Is better change bank ?  or ? Thanks

Difficult to offer specific advice as it isn't really particularly clear what your current situation is, as opposed to the summarised history - if you're saying that you currently have no debts then you should be able to get another bank account, even with a low income, but much depends on the state of your credit files, have you checked these?  It's still entirely possible that other banks would refuse you an overdraft facility, as they're under no obligation to offer these and are obviously less likely to do so if your credit status (and low income) would suggest high risk of default.

coachman12

So many bankers or ex-bank clerks on this thread.........................

born_again

Forest17 said:

Hi, can anybody advice , I have lloyds bank acount 15 years , i asked 1000 times for min owerdraft and never accept. I had several payday loan for years and i was always in unarrange owerdraft . They charge me for this years 1000s pounds for this and never offer any help sortout this problem ( iam not sure if they should do) , i dont have any debts with them  . I get 660£ a month , why never accept my apply for min.owerdraft ? They can take this money back when my payday. Is better change bank ?  or ? Thanks

As soon as payday loans are seen, then you will be very hard pressed to get a O/D. As it is clear that financially you are over stretched.
If you contact them and say you have issues, they will have a team that can deal with you. But they can not make your money go any further. That is up to you. 
TBH. If you only get £660 a month, how much do you think they should be offering you? A overdraft is not something they take back when you get paid. All your money does is put the account in a credit balance. You will then spend and end up in the O/D. It is a never ending cycle. Although a O/D can be cancelled for repayment at any time.
So in some ways they are doing you a favour. Remember they do not have to give you a overdraft.

coachman12

Forest17 said:

Hi, can anybody advice , I have lloyds bank acount 15 years , i asked 1000 times for min owerdraft and never accept. I had several payday loan for years and i was always in unarrange owerdraft . They charge me for this years 1000s pounds for this and never offer any help sortout this problem ( iam not sure if they should do) , i dont have any debts with them  . I get 660£ a month , why never accept my apply for min.owerdraft ? They can take this money back when my payday. Is better change bank ?  or ? Thanks
_________________________________________________________________
It is typical of Banks to turn their backs on reputable and loyal customers of 15 years standing. My only advice is to shop around various Banks and see if at least one of them can arrange a meeting between you and their "financial experts" ( like the ones who caused the banking crash followed by years of austerity ) and discuss your individual problems and needs with them. They will probably treat you like dirt but you never know........you may be lucky and get to talk to one of the few bank employees who actually want to help someone who has had a bank account with a major bank for 15 years.