How long before Barclays can offer you an overdraft?

mab3000

[Deleted User] said:

Just to update to say, I spoke to Barclays who told me my account is not able to have an overdraft, but someone will phone me about getting an upgrade, I am somewhat confused as to which account I currently hold. It is simply called "The Barclays Back Account" and I thought the next one up was premier. I will await their call, perhaps they no longer offer overdrafts on their standard account. 

Not sure why Barclays have told you what they have. It’s the “Barclays Basic Current account” that is not eligible for an overdraft facility. If you’ve got “The Barclays Bank Account” at the moment, that is able to have an overdraft facility on it, subject to status. If you do get an overdraft facility, that account will then change its name to “BBA Overdraft”. 

Will_Riker

Marchitiello said:

Everybody immediately assume that overdraft are a no-no for everybody and in all circumstances.

That's not quite true, to be fair.  Having an overdraft available and not using it (or only using it very occasionally) is no problem at all.  In fact, having an overdraft available and never using it can actually be a positive on your credit report.

The problem occurs when someone uses their overdraft day in, day out, for a lengthy period of time.  The automatic inference from that situation (at least in the eyes of a prospective lender) is that they are living beyond their means.  Added to which, a bank can theoretically remove or reduce an overdraft facility at any time and demand immediate repayment - which can obviously cause issues for someone who is replying on their overdraft to get by.

So having an overdraft available is not an issue in itself (and can, as you say, be a useful safety barrier).  It the way it's used that may start to cause problems.

[Deleted User]

mab3000 said:

Deleted_User said:

Just to update to say, I spoke to Barclays who told me my account is not able to have an overdraft, but someone will phone me about getting an upgrade, I am somewhat confused as to which account I currently hold. It is simply called "The Barclays Back Account" and I thought the next one up was premier. I will await their call, perhaps they no longer offer overdrafts on their standard account. 

Not sure why Barclays have told you what they have. It’s the “Barclays Basic Current account” that is not eligible for an overdraft facility. If you’ve got “The Barclays Bank Account” at the moment, that is able to have an overdraft facility on it, subject to status. If you do get an overdraft facility, that account will then change its name to “BBA Overdraft”. 

I thought that also, but she advised no it's not possible. I am going to try again next week at a different branch near work, see what they say then!

Thus far they have not called me as promised.

[Deleted User]

Will_Riker said:

Marchitiello said:

Everybody immediately assume that overdraft are a no-no for everybody and in all circumstances.

That's not quite true, to be fair.  Having an overdraft available and not using it (or only using it very occasionally) is no problem at all.  In fact, having an overdraft available and never using it can actually be a positive on your credit report.

The problem occurs when someone uses their overdraft day in, day out, for a lengthy period of time.  The automatic inference from that situation (at least in the eyes of a prospective lender) is that they are living beyond their means.  Added to which, a bank can theoretically remove or reduce an overdraft facility at any time and demand immediate repayment - which can obviously cause issues for someone who is replying on their overdraft to get by.

So having an overdraft available is not an issue in itself (and can, as you say, be a useful safety barrier).  It the way it's used that may start to cause problems.

As long as you pay the overdraft off each month I don't see what the issue is, if someone is not able to do that beyond a few months, yes there is an issue.

An overdraft is perfect for someone like me who has different pay values now and again.

Marchitiello

Some additional comments following my previous post:

- I mentioned everyone was immediately assuming that Overdraft was bad as those were the replies up to that point, but I am sure there are people out there that understand the value of an agreed overdraft buffer, especially if it is free up to a certain amount.

- I have been a Barclays Premier Customer for many years and I am pretty sure by fee free overdraft buffer is higher than the generally advertised £500, but also my ATM limit is higher than the generally advertised limit for Premier. 

- Barclays Premier Requirements are still an income of £75k per year or a £50k saving or investment with them. In addition (once you qualify) they recently introduced an additional requirement of depositing £3300 per mont or £40k per year to have the account for free, otherwise they will charge you £20 pm. This was the original communication, however during a recent campaign for the Avios Reward bonus, some of the wording on the T&C changed that suggested that  you can indeed have it by either paying £3300 per month or £40k a year even if your gross income is not at least £75k and by doing so avoid the £20 monthly fee. 

mab3000

Marchitiello said:

- I have been a Barclays Premier Customer for many years and I am pretty sure by fee free overdraft buffer is higher than the generally advertised £500, but also my ATM limit is higher than the generally advertised limit for Premier. 

It used to be £1000 on the premier account, but it changed to £500 when the regulations changed for overdraft charges from a daily fee to an interest rate. The ATM limit on the premier account is £1000 a day. 

[Deleted User]

I could pay in £3300 most months, maybe that's why they keep on about it. But that doesn't equal a 75k a year salary. 

Saver101101

mab3000 said:

Marchitiello said:

- I have been a Barclays Premier Customer for many years and I am pretty sure by fee free overdraft buffer is higher than the generally advertised £500, but also my ATM limit is higher than the generally advertised limit for Premier. 

It used to be £1000 on the premier account, but it changed to £500 when the regulations changed for overdraft charges from a daily fee to an interest rate. The ATM limit on the premier account is £1000 a day. 

ATM Limit is £2000 a day, At least it is on mines:

mab3000

Saver101101 said:

mab3000 said:

Marchitiello said:

- I have been a Barclays Premier Customer for many years and I am pretty sure by fee free overdraft buffer is higher than the generally advertised £500, but also my ATM limit is higher than the generally advertised limit for Premier. 

It used to be £1000 on the premier account, but it changed to £500 when the regulations changed for overdraft charges from a daily fee to an interest rate. The ATM limit on the premier account is £1000 a day. 

ATM Limit is £2000 a day, At least it is on mines:

Must of changed that then, it did used to be £1000 a day 

born_again

[Deleted User] said:

Band7 said:

They might have done you a favour, since overdrafts are one of the most expensive form of borrowing. Have you tried a loan instead? Or could you avoid the need for a loan altogether by cutting some spending?

The overdraft is simply to have a buffer. I do not require it as such for everyday spending, but every now and then until I am paid again. 

Instead of wanting one just in case. Wait till you actually need one then apply. Even if declined a unapproved O/D can be  cheaper than a approved one, as they have capped charges.

Get building a emergency savings pot, so you can dip into that, rather than a O/D.

Banks do not like O/D's sat not being used. This became very clear in 2020 & covid, with many lowering O/D limits to reduce their exposure to debt.