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Just been declined for an overdraft and I have no idea why!

(14 Posts)
Jumblebee Fri 22-Aug-14 14:34:56

The overdraft was for £150 as a buffer because things have been tight this month. Unforeseen expenses that mean I'm not sure if come the start of next month we'll have enough money in our account to cover our outgoings.

Decided to set up an overdraft just in case we didn't have enough and to act as a buffer for any financial emergencies. And it got rejected. It was the most humiliating feeling blush

I'm normally very organised financially and for the past 2 years we've never missed a payment or gone into an unauthorised overdraft before. Over these 2 years I've gone from having a £1600 loan to owing my bank (who I got the loan from) £73. My last payment will come out on the 1st September.

The only thing I can think of that may have affected it is that the £1600 loan for to pay off my student overdraft (I was really stupidly careless with money as a student) so they'd be reluctant to give me another overdraft?

Or is it because we don't have any credit? I thought a loan was classed as credit but I'm not sure. We don't have store cards or credit cards and the only thing we have on finance are our settees and we both have average priced phone contracts.

I'm just a bit confused and worried now. Would it be worth signing up for the experian trial to have a look at my credit report?

notapizzaeater Fri 22-Aug-14 14:37:19

You can get a free monthly credit report off noodle. It lists anything outstanding and any late payments etc

Siarie Fri 22-Aug-14 14:42:49

I would sign up for a free trial with one of the three credit checking companies so you can check your credit record. That's what banks will be using to check, lots of things can use problems so have a look and see.

I had issues when i changed banks and my name (got married), my credit reference dropped due to opening a bunch of bank accounts in a short space of time. Even though everything else was perfect, no missed payments and I had been building my rating for years with a credit card etc intentionally.

Jumblebee Fri 22-Aug-14 14:59:48

Thanks for replying!

I just signed up to noddle and apparently my credit score is 1/5 confused I don't know how because I'm very nearly not in debt and I never make late payments or owe money on credit cards hmm it doesn't really explain what the score means and I can't see anything that would suggest why it's so low.

notapizzaeater Fri 22-Aug-14 15:05:46

You can look at outstanding stuff and payments (think it's on left hand side - that might give you an idea ??

Jumblebee Fri 22-Aug-14 15:23:50

Notapizza I can't see an option for that I'm afraid hmm

It shows me my current payments for my loan and settees which both say up to date and have a green dot next to each month they've been paid. No CCJ's, bankruptcies etc. The one thing I DID notice is that it said I wasn't on the electoral roll so I called up and the lady said I was. But then checked with someone else who said I wasn't so they're sending forms out to me. But if I wasn't I wouldn't have been able to get a loan for my overdraft or settees would I?! It's all so confusing sad

I'm going to get my partner to check his out too. Unless it takes years to build back a good credit report, I think maybe my bad spending history is still biting me in the arse!

Jumblebee Fri 22-Aug-14 15:24:50

Also I am using the mobile version of the site and have just seen that I can get more information using the desktop site so I'm going to switch to that and see what else I can find out!

notapizzaeater Fri 22-Aug-14 21:34:11

Did you find more on a desktop. The electrol roll thing is huge so it might be that.

Jumblebee Fri 22-Aug-14 21:49:08

No I couldn't really find anything. A couple of cards that are still on my history, 2 seperate bank accounts with the occasional orange dot but mainly green and all my current accounts and debits are all completely green and up to date!

My friend text me to ask about the electoral role as she said it could have been that. I don't know how I could not be on it?! My partner is, from February this year. His score was 3 out of 5 (which pisses me off slightly because he had his phone direct debit fail to come out because of insufficient funds a few times before I nagged him to move it to our joint account so he'd never get charged again! I am the financially sensible one, I'm the budget woman and the finance spreadsheet maker! He doesn't deserve that score!)

Sorry. Please ignore childish rant confused

Bearbehind Sat 23-Aug-14 09:23:13

OP, 'the occasional orange dot', not being on the electoral register and being financially linked to your partner with his failed direct debits are all going to contribute to you not getting an overdraft.

Unless you are squeaky clean banks are reluctant to lend anything as it may be classed as irresponsible lending.

LittleBearPad Sat 23-Aug-14 09:29:53

Did you apply online for the O/d? If so phone your bank up and ask them why it was refused.

Missda Sat 23-Aug-14 09:39:04

Go onto Experian as they offer a free 30 day trial ( it is easy to cancel) and are very thorough. Also if your address does not happen to match exactly to the one on the election roll this will come up as not on the electoral roll.

OnIlkleyMoorBahTwat Sat 23-Aug-14 09:40:53

If if makes you feel any better OP, I was declined for credit for £90 from Next last week, and I have a flawless credit record.

I wasn't bothered because I just wanted to order and pay by card for a dress that wasn't available in longer length in the shop and it appears that you can't order from them without applying for credit confused sad.

However, you must get yourself on the electoral roll and both you and your DP sort your finances out so there are no missed payments ever.

The banks are much much stricter than previously, which in the main is a good thing, because 5-10 years ago they effectively colluded with and encouraged lots of people to get into debt.

A small overdraft is a good idea, as it will mean that there is less chance of missed payments, but you should routinely pretend that it doesn't exist, or else you would probably end up spending it and that can be the start of the slippery slope to unmanagable debts.

Jumblebee Sat 23-Aug-14 12:48:10

My partners credit score was better than my own, 3 out of 5.

He hasn't had any missed payments in about half a year now as I manage our finances very strictly. I nearly always know what is coming in and what goes out when and I've never missed a payment on anything now for nearly 2 years.

I wouldn't see the overdraft as money I could spend, I think after 2 years of scrimping and saving I couldn't go out and spend it all. Whenever I do buy myself something I end up feeling guilty and unless I absolutely need it, I usually end up taking it back.

The good news (grin) is today I was offered and have accepted a new job! The pay will go up after 3 months and I will save £70 a month on travel because I can walk there! So along with paying off my debt I will have £140 more per month than I do at the moment! I'm so excited, we might be able to actually start saving again and create a new emergency stash of cash. Plus my MIL said if we need any help at the end of the month just to ask, but I'm hoping with being extra cautious we won't have need to borrow money.

Wow long post! Thank you all for the replies. Letters are coming for the electoral roll and will be sent off ASAP!

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