Increase Overdraft

minxtress

I have a current account with RBOS, which I have a £500 overdraft facility on. I have apporx 20k a year going in this account and all my DD's going out of it for all my utilities.
I never go over this facility.I asked about a year ago to increase this to £1000 and got knocked back, had bad credit rating in past but this is getting better. Anyway I can get this increased or any ideas of another bank who would. Dont want to apply and get knocked back as trying to keep amount of searches on my credit check down to minimum to get new mortgage without too much hassle.

bargains83

minxtress wrote: »

I have a current account with RBOS, which I have a £500 overdraft facility on. I have apporx 20k a year going in this account and all my DD's going out of it for all my utilities.
I never go over this facility.I asked about a year ago to increase this to £1000 and got knocked back, had bad credit rating in past but this is getting better. Anyway I can get this increased or any ideas of another bank who would. Dont want to apply and get knocked back as trying to keep amount of searches on my credit check down to minimum to get new mortgage without too much hassle.

When asking for an overdraft increase, they don't normally do a new credit search they usually look at how you are managing the one you already have. If you want £1k, its a big step from £500 to £1k as it is effectively doubling your limit. Which means double the risk to the bank and yourself which they may not be comfortable with. It might be an idea to ask for £750, see if they approve this then 6 months down the line ask for that increasing to £1k.

minxtress

Thanks for that. I never go over the overdraft facility I have now and have money left at end of month, I constantly use my overdraft now but not always to the full 500. Wonder why Im not getting one. I always assumed it was to do with my credit score.

newmum1

If you have money left at the end of the month why do u need it ? if u are constantly in it now that may be why u are getting knocked back?

minxtress

I am constantly in it now whether its £10 or the £400 as I have had it forever and soon as my wages go in, they pay off whatever overdraft I have left and obviously leave me short. Say over xmas I used it all. By feb I wont touch it again. Id like it increased though because as a single parent I dont have any other debt, and would like a little bit to know I can fall back on in the case of an emergency, or as may happen I am hoping to remortgage soon and will need to pay fees, solicitors etc and will struggle massively, so using that then paying off out of my additional borrowing would help me greatly.
Quite hard being a single parent knowing there is absolutely nothing or no one to help you in case of emergency, and Im good with money ordinarily, I do mean an emergency.

anna42hmr

maybe if you booked an appointment at the bank and sat and explained to them the situation they may help,

it worked for me with lloyds tsb, as i had a £1500 over draft limit, (i have never gone more than £200 into it though) but i took a career break from work for 4 months travelling so asked them to increase the limit to £2000 incase of emergency (as i had set up all my credit cards etc on direct debit whilst i was away, and wanted to make sure i had enough to cover that and incase i needed any more cash etc) and had no wages from work coming in fro that period

however even though i only asked for an extra £500, they offered me an increase of £1000 to £2500.

luckily i never needed to use much of the limit (only went about £600 into it for a couple of days), but whilst i was half way round the world, it was a comfort knowing i had the back up.

so maybe a £1000 increase is not out of the question, but you wont know until you ask, as for a request being on your credit check, they did not do that when i requested, she just discussed my reasons for wanting it and checked on my handling of the account and wether i had been running my currant account with them well

danielleindebt

im with lloyds and i kept upping my overdraft by 1k every 3-4 months(so wouldnt encure o/o/draft fees. no refusing or questions i didit online and i went upto 6k. obviously regretting it now and trying my hardest to pay it all back asap.

moz86

Dont hold me to this, but I don't think they do credit checks when you request a new overdraft. If it is clear that this is your everyday current account, they look at your aco!!!! behaviour, ie not going over existing overdraft, and your regular income. Just go for it, I don't think its going to hurt.

Ps. If I can be so nosey, whats the overdraft for if you're paying your DD's etc fine?

Moz

minxtress

minxtress wrote: »

I am constantly in it now whether its £10 or the £400 as I have had it forever and soon as my wages go in, they pay off whatever overdraft I have left and obviously leave me short. Say over xmas I used it all. By feb I wont touch it again. Id like it increased though because as a single parent I dont have any other debt, and would like a little bit to know I can fall back on in the case of an emergency, or as may happen I am hoping to remortgage soon and will need to pay fees, solicitors etc and will struggle massively, so using that then paying off out of my additional borrowing would help me greatly.
Quite hard being a single parent knowing there is absolutely nothing or no one to help you in case of emergency, and Im good with money ordinarily, I do mean an emergency.

Just purely for emergencies...I dont want to get a bank loan or anything and manage financially monthly, but I suppose same as most people dont have lump sum left at end of month to save for rainy day. Boiler going, fridge breaking etc. I am a worrier and would like something there incase.
Thanks for advice

CLAPTON

This doesnot make much sense... if in an emergency you used a larger overdraft you would have to pay it back.
So if you can afford to pay back a larger overdraft you must be able to save up a bit each month for those same emergencies.
Plus if you get out of your overdraft you would avoid the interest charges.
Its a no brainer ... you need to just save up a little each month.. its difficult of course but every other alternative is worse and costs you more.

YorkshireBoy

You have nearly £1,700 per month going into the account, and yet you're "constantly" in your overdraft.

The bank will see that, despite what is a very good net income, you're not making any headway into returning the account to the black.

That said, if your last request was a year ago, then maybe they'll help if you ask now?

Normally, a bank wouldn't need to see your commitments elsewhere (via an external credit search) if they held your main account, and any overdrafts are normally given/increased purely on account conduct/throughput activity.

I suggest you visit a branch to discuss your requirements, rather than deal with call centres, but for goodness sake take on board the comments passed by others on the outcome of their increased overdrafts, ie their debts spiralled.