Barclays Premier Account - No Overdraft

maverickeastman · 17 January 2019 at 8:38AM

So, I’ve been in the UK for close on two years now and have been building my credit history over the last 18 months or so. In some of my efforts to do so I took out a guarantor loan at Amigo Loans. In retrospect a horrific decision. I did it because all the signs led to using it as an opportunity to build my credit history. I took out an £8000 loan in September but after looking at the horrific mechanism in which is works. I paid it off in December.

I also, during the period, opened a Barclays Premier account. I reached out to my Premier banker last week about an overdraft of £1000, as a contingency on my account. I was told that I was not eligible and would not be eligible for an overdraft for at least a year because I’d taken a payday loan. I explained my reasoning for the loan but this made no real difference. Blows my mind as I have around £50k in savings and investments with Barclays. So a £1000 overdraft should logically be no biggie.

I’m curious about your thoughts and specifically how is it that I’m being judged for a payday loan when I didn’t take one out (unless Amigo is a payday loan company?) and what recourse, if any, I may have. :mad:

Thanks.

M

[Deleted User] · 17 January 2019 at 8:45AM

You don't have any recourse.

Guarantor and payday loans are a sign that someone is out of control with their finances and few lenders look favourably on them.

To build a good credit history, you need to demonstrate sensible financial behaviour.

Try for a sub prime credit card. Use it for your regular spending and clear in full each month.

If you get declined, leave it for three months then try again.

HaveAGo · 17 January 2019 at 8:45AM

First of all, you have no recourse with Barclays. If they don't want to give you an overdraft that is that.

Taking an Amigo loan was crazy as you have discovered. It's for the desperate and you can see why Barclays have classed it in same category as a payday loan.

What other steps have you taken to build yiur history.....credit cards?

stripeyfox · 17 January 2019 at 8:55AM

I think Amigo loans are viewed negatively since the person who takes out the loan does so because they have no other options for credit?

I think Barclays approach is reasonable and they've indicated you may be considered in a year.

As regards recourse, I don't think you have any. Barclays is a business and can choose to "lend" you money (via Overdraft) or not as they may wish.

They might wonder why if you have £50K you need a £1K overdraft?

NewToTheUkAgain · 17 January 2019 at 9:45AM

Could always switch your banking out to another provider and see what happens.

Having a second current account anyway is always adviseable, so maybe make an application with another bank and see what they offer you?

I can see why Barcalys are saying they will not lend to you, but not all lenders and criteria are the same.

Chrysalis · 17 January 2019 at 9:53AM

my question is if you so comfortable with your 50k, why did you take out a payday loan?

Normally those are loans given out to very desperate people. But I suppose if your cash is tied up and not immediately accessible then people may still use those services, but I would have expected someone in that situation to have a CC for emergencies.

maverickeastman · 17 January 2019 at 11:00AM

Chrysalis wrote: »

my question is if you so comfortable with your 50k, why did you take out a payday loan?

Normally those are loans given out to very desperate people. But I suppose if your cash is tied up and not immediately accessible then people may still use those services, but I would have expected someone in that situation to have a CC for emergencies.

As stated the loan was purely as a credit building mechanism, as the credit cards I received before the loan was taken had incredibly low limits. (hovering around £250). I foolishly wanted a high value loan, to repay it, so that I would build confidence and my credit standing. Stupidly enough - one of the selling points that Amigo used was that this would build my credit history. Stupid me!

M

18cc · 17 January 2019 at 12:43PM

If I read your post correctly it sounds like you are applying for the overdraft not because you want to spend the money but just in case you accidentally go overdrawn i e a contingency

if you can't get the overdraft then probably the best thing to do is to pay £1,000 of your savings into your account and use that as the buffer i.e. don't let your balance drop below 1000

[Deleted User] · 17 January 2019 at 1:35PM

If you have "over £50k in savings and investments" then you don't need a £1000 overdraft.

Overdrafts and loans show to lenders that you cannot make ends meet and need to rely on lending facilities to get by.

alphabravocharli · 17 January 2019 at 1:45PM

I think its not quite true. What i understand from OP is that he is new to UK and trying to build credit history by taking Loan and paying EMI on time to show lenders that he is trustworthy. same is the case for overdraft.

!!! wrote: »

If you have "over £50k in savings and investments" then you don't need a £1000 overdraft.

Overdrafts and loans show to lenders that you cannot make ends meet and need to rely on lending facilities to get by.

NewToTheUkAgain · 17 January 2019 at 1:48PM

In my opinion having an overdraft and showing that you act responsible with it, IE using it rarely shows that you can be trusted more.

But again I do not have the scorecards and maybe I am wrong.

Barclays Premier Account - No Overdraft

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