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View Full Version : Bank won't increase my overdraft


touchthesky
13-05-10, 09:20
Urgh, anyone know why this would be?!

Is it because I haven't got in to my current overdraft and they don't see the point?
Are there any reasons why they wouldn't increase it?

jamieoliver22
13-05-10, 09:25
It may be worth asking your bank directly? How far have you gone into your overdraft?

touchthesky
13-05-10, 09:26
I just asked and they said "they just cant offer that service at the moment."

I haven't gone into it at all but I am very close to doing so and it's not big at all...so I'm worried I'll wind up with no money.

Greenkey2
13-05-10, 09:45
It's worth reading up on the small print of anything to do with the account you have at the moment. Leaflets and online resources (not to mention anything sent to you when you opened the account) might have the information you need.

Other than that, the only thing is to go to your bank and talk to someone, face-to-face, if at all possible.

aktrekker
13-05-10, 22:09
There were some new laws passed in the US concerning overdraft fees. It limits banks, so they have to change their services to comply with the law. Meantime people do without.

If you use the overdraft you not only have run out of money, you now owe the bank. Also some pretty hefty fees for providing the service, usually $20 or more for each individual item.
Instead of asking for overdraft, reduce your spending any way you can. Do without stuff. Remember that every overdraft will cost you money, and is borrowing against your next paycheck. That means you have less money next month.
And paying it back is not like a credit card. Any money you deposit pays off the overdraft in full. Whatever is left is what you have to spend. DO NOT get into this cycle, you will never get out.

kthnxbai
13-05-10, 22:12
Well considering how a lot of banks are tightening their belts lately...

If you have a steady income and aren't always overdrawn they should usually up your limit no probs..

It'd definately be worth having a chat with the bank manager and asking them why specifically you weren't approved

Gregori
13-05-10, 23:07
Over Drafts are addcitive and bad for you!!!

spikejones
13-05-10, 23:37
I've never needed the overdraft protection that my savings account provides against my checking account. Mostly because I spend cash rather than checks and monitor my checking balance before spending any of it on bills. If its too low I just transfer money over from my savings to my checking. Actually, I don't even use checks. I just use a debit/check card.

aktrekker
14-05-10, 00:53
^I do the same.
And my overdraft coverage from savings doesn't work with the card, only checks. So I know my rent will always go through, but with my card I can't spend more than my disposable income.

I used to be a telephone banker, doing customer service for bank customers over the phone. Trust me, I've seen what overdrafts do to a person's account. DO NOT be fooled into thinking this is a service for you. It's just another way for the bank to make money.

TheBloodRed
14-05-10, 01:01
I've paid $30 for a coffee this way. :wve:

Solice
14-05-10, 02:13
Urgh, anyone know why this would be?!

Is it because I haven't got in to my current overdraft and they don't see the point?
Are there any reasons why they wouldn't increase it?

Be happy you are not being drafted ;)

Draco
14-05-10, 02:40
I'm not even allowed to overdraft currently.