Hi All, I am curious to see what is the maximum overdraft people have been able to obtain with their Banks.
I’ve looked to increase my HSBC Premier overdraft but have discovered it’s capped at £5,000 via online banking.
Has anyone been able to increase this via phone etc??
The same Barclays Premier, which is now capped at £3,000 (I have had higher than this before)
The fees for larger than £5k must be insane. If you need that much, is a loan or credit card not a better option?
You can’t do anything over the phone in monzo that isn’t approved in the app.
Decisions are made app wise and that is the end of that.
He’s asking about HSBC I think.
Overdrafts are only for short term borrowing cos banks can demand repayment in full any time, while loans or credit cards have a clear deadline. I’ve not tried getting the max amount, only enough to cover a month’s living cost.
My Monzo one is £3,500 though I’ve never tried to increase it.
When I was a student in 2007 (!!) my Halifax overdraft was £3,000 (which today would be about £5,000).
I think you do reach a point where you should get a credit card/loan so I can understand limits.
Yes, it’s a very expensive way to borrow. My overdraft is for emergencies only and I only started using one at all after I was in hospital with sepsis for a few weeks and a credit card DD was refused because I hadn’t moved some funds into my account after an expensive purchase.
It harms your credit worthiness, too. I think due to the lack of repayment structures, some people think it’s an extension of their bank balance rather than a form of expensive short term borrowing.
I did think of reducing my arranged overdraft limit as I hardly ever dip in it, but as you’ve experienced, you never know when a misfortune could interrupt your credit facilities, so it’s always useful to have that safety cushion.
It’s only harmful if you’re utilising it the same way you utilise a credit card.
My NatWest overdraft is £1000 but it does say I’m “highly likely to be able to increase it to £5000”.
Seems like a mental amount for an overdraft