How long before Barclays can offer you an overdraft?

[Deleted User]

born_again said:

[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.

But I do need it now. As I say my salary drops every so often as expected. If Barclays refuse to offer an OD for much longer I will need to return to my old bank. 

[Deleted User]

Band7 said:

grumbler said:

Deleted_User said:

... But they state they are unable to offer me an overdraft. ... 2k on a CC. Nothing to suggest I cannot pay off debts. ...Barclays says no.

With 2K on a CC why do you need even more expensive overdraft?

maxed the CC, may be?

I wondered where Daliah / Colsten went to 

[Deleted User]

[Deleted User] said:

born_again said:

[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.

But I do need it now. As I say my salary drops every so often as expected. If Barclays refuse to offer an OD for much longer I will need to return to my old bank. 

I would just take a good switching offer if that's what you need
e.g. First Direct can give you £250 interest free; Virgin Money have a low-ish APR from 19.9%.

Marchitiello

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. 

Once again, my ATM limit is much higher than that, has been for many years and have used it few times, so I know for sure. Not sure about the free overdraft current limit as I have actually never  closed the business day in red.

Marchitiello

[Deleted User] said:

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. 

As I explained in another post, they have considered that most people on high salary would maximise the tax benefit of higher pension contribution and salary sacrifice. Without these the money net pay would be in the region of £4350 but with a high tax deduction.

Saver101101

Marchitiello 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. 

Once again, my ATM limit is much higher than that, has been for many years and have used it few times, so I know for sure. Not sure about the free overdraft current limit as I have actually never  closed the business day in red.

My limit is £2000 a day, although I have never used that and see no need as to when I ever would.

[Deleted User]

Just an update to say, I have spoken to Barclays to a loverly lady and she stated there was no offer of an overdraft on my account and this was strange as 3/6 months had passed. She confirmed the account was in excellent standing and asked if my credit record was good. I confirmed I had recently checked it, and it was fine.

She said we can still apply. We did so and it was declined stating I could not afford a £500 overdraft when I earn nearly 60k and had 1k disposable income per month. This seemed somewhat odd so she has passed it through to underwriter for a final decision. Part of me wants to give up but really curious now to see if they will grant me an overdraft, if not I will sadly have to go. I must say I have never experienced having to go via an underwriter in this day and age for an overdraft, I'd imagine it was a thing back before there were computers invovled. Will let you know the final outcome. My suspicion is that there is something about my spending that the computer does not like.

Incidentally I am eligible for a Barclaycard which I declined as I already have credit cards. 

born_again

While you have a good income.
What is the % of available debt to your income?

[Deleted User]

born_again said:

While you have a good income.
What is the % of available debt to your income?

I am not 100% what you mean by this, but the only debt I have other than the mortgage is roughly 2k or so on a HSBC credit card and £500 left on a phone (ironically with Barclays). So I'd say about 3k in all to play it safe. 

I pay about £250 a month towards this debt but they will be paid off within six months as I will have started to make additional payments last month and will continue to do so. This £250 or so was included in the overdraft application with Barclays, so after than I have nearly 1k disposable.

10 years ago when I was earning 19k I could get a £500 overdraft with ease. I am very aware my methods are not the most cost effective but at the end of the day I can pay off the debts easily and know what I am doing. I have never defaulted on anything.

CRISPIANNE3

Deleted_User said:

Just an update to say, I have spoken to Barclays to a loverly lady and she stated there was no offer of an overdraft on my account and this was strange as 3/6 months had passed. She confirmed the account was in excellent standing and asked if my credit record was good. I confirmed I had recently checked it, and it was fine.

She said we can still apply. We did so and it was declined stating I could not afford a £500 overdraft when I earn nearly 60k and had 1k disposable income per month. This seemed somewhat odd so she has passed it through to underwriter for a final decision. Part of me wants to give up but really curious now to see if they will grant me an overdraft, if not I will sadly have to go. I must say I have never experienced having to go via an underwriter in this day and age for an overdraft, I'd imagine it was a thing back before there were computers invovled. Will let you know the final outcome. My suspicion is that there is something about my spending that the computer does not like.

Incidentally I am eligible for a Barclaycard which I declined as I already have credit cards. 

I remember when I opened my account with Lloyds back in 1985 and wanted an overdraft. I got the requested temporary overdraft. However when I asked a few months later if it could be made permanent the assistant manager said no problem but the facility would not be granted because the bank manager did not like me. At least a commuter does not allow personal emotions to get in the way.