overdraft and charges

Soldato
Joined
1 Jul 2007
Posts
5,392
Not the usual thread on refunding charges or getting them cancelled, fed up arguing with the bank!

I tried to increase my student overdraft today but was declined due having too many charges.
Is this the same as a credit rating?

How would I go around increasing my rating to a good one?

In the summer when Iam working and know I can afford to buy stuff should I get them then pay them off later?

I already have a credit card, which I dont use, should I purchase things on that then pay them off the next month?


Or are overdraft and charges something I can't "fix" apart from making sure money is there for direct debits?
 
How much are you overdrawn by? and how much are the charges each month? It might be worth seeing if your credit card provider can transfer cash into your current account to pay off the overdraft - only if they do promotions or something...

Overdraft charges can be more then credit card interest - depending on current account. Halifax for example charge a flat rate of £1 a day for the first £2500, then £2 per day after this...

And no, being overdrawn and your bank declining you a further extension is not due to credit rating, what they have done is declined due to you already being overdrawn and being charged monthly and history might have shown you do not have means to repay what you already owe...

Your best bet is to clear down the overdraft - can the bank not give you a loan? I think most banks will only loan £1000 or more but ask them...
 
Not the usual thread on refunding charges or getting them cancelled, fed up arguing with the bank!

I tried to increase my student overdraft today but was declined due having too many charges.
Is this the same as a credit rating?

How would I go around increasing my rating to a good one?

In the summer when Iam working and know I can afford to buy stuff should I get them then pay them off later?

I already have a credit card, which I dont use, should I purchase things on that then pay them off the next month?


Or are overdraft and charges something I can't "fix" apart from making sure money is there for direct debits?

Probably not what you want to hear, but it sounds like you are already living beyond your means.

It won't be your credit limit stopping you getting the increase, but your past conduct with the bank. Bouncing DD's etc are a sign of you struggling or not managing money correctly. You have an internal score with the bank and this will have suffered becuase of that.

I suggest you spend the next 6 months only buying things when you have the funds and concentrate of making sure your bank account is run well. Then, you may stand a chance of getting a limit increase.
 
Probably not what you want to hear, but it sounds like you are already living beyond your means.

It won't be your credit limit stopping you getting the increase, but your past conduct with the bank. Bouncing DD's etc are a sign of you struggling or not managing money correctly. You have an internal score with the bank and this will have suffered becuase of that.

I suggest you spend the next 6 months only buying things when you have the funds and concentrate of making sure your bank account is run well. Then, you may stand a chance of getting a limit increase.

Agreed. You need to run your account in the black for 6 months, a good tip is to get in credit with your account, and think of £600 as example as being at 0. Then you won't spend it, unless you need to, and you won't go into the red, and replace the funds you spend from the £600 next month... It worked for me.

I have £2000 as what I class as nothing, when I get to £2000 in my current account I class myself as broke..!!! operating funds with your own money is better then using the banks money.

you really do need to clear your overdraft. Problem with overdrafts is they are also payable on demand.. The bank can request full payment within so many days - I think..

I have an overdraft on my account, but never use it. slowly over the years its crept up to £2500... Crazy..!!!
 
Well I work through the summer which pays off my overdraft + gives me extra, done this for the past 2 summers now.
Going to look into options for rent payment instead of 3xlarge amounts £1500around, i could do it monthly, there is a £90charge extra for it, but if i can set a date for it to come out then I could do it the same day/day after student loan comes in then that would stop those charges.
Really it's only my rent, and I think one online purchase, that sent me over the top.
Currently trying food/costs for £20 a week but recon it'll be £40 now.
I admit Iam not good with looking after money. It's not spending it on large things as I plan in advance what I want and make sure I cant afford it. One example is I worked a week during the term which paid for a new phone that I needed.
It's just frittering it away.

I also admit I do live beyong my means, saas this year was £1k short of what my rent is. And by the time I paid off last years O.D it had around that 1k saved up.
 
Also I apply for numious jobs when a new term starts at uni, and I never hear anything back! So don't have a monthly income coming in.
What I may do is once cleared off the O.D set up a d.d so that my rent goes into an other account.
 
Just sounds to me you need to arrange better money management..

anyone in your family clued up with funds management to take a look over your accounts and advise you?

Being at uni, and summer jobs etc, its hard to try and think ahead and save for when you need it. rule of thumb when a student - you don't need it, you don't want it, and anything you have left from your student loans etc goes towards the next term....;)

Now, not to say you never go out, however just tighten the belt a little....
 
well plan to change over the summer my computer case + buying fans and a h50 has been dropped.

The bf is buying me a blu-ray boxset for my birthday, which can only be bought in blu-ray so that's a defo cost now of buying a blu-ray player for my computer, but brother is giving me money towards that.

Just done a quick jot down of rough costs for next year and came to £220 a week, but £118 is the rent. Unite, so everything is included, hence the stupid amount. Again looks like saas is 1k short for next year for rental costs.
Really this overdraft is just food and going out costs as anythign I've bought this year has been paid for when i got the work.
 
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