Applying for overdraft...

[poorloor]

Just looking at my online banking.
I'm with Halifax and they keep prompting me to apply for a overdraft.
They said it won't affect mr credit score.

How do they check me then?
Will I need pay slips etc ?
Show proof of jobs etc ?

Are your wages paid into that account & your household bills, mortgage/rent whatever paid out of that account?

If you’ve banked with them for years they probably don’t need proof.

I'm with a different bank but been with them since 16. Always had wages paid in, life expenses out of it. They offered an over draft, I applied and that was that. Overdraft granted within a loaded page.

Nothing needed for mine, was there instantly once accepted.

I've banked with them for over 10 years now and yes everything paid in and out of there

They will base it internally on what they know of your finances.

If you don't need it then don't get one. I end up back in my overdraft every month but always by the same amount. If I didn't have one I wouldn't need it. It's just debt without good reason.

If you have the app, go into the account and tap on 'overdraft options'. It doesn't affect your credit rating, and up to a certain level, it's automatically approved. But if you don't need one, don't get one.

They want you to have an overdraft because the interest rate is very high so they make a lot of money out of it.

Don't fall for it. If you need a little flexibility to manage cashflow, use a credit card and pay off in full every month. Totally free and gives you a few weeks interest free credit so lets you spread extra expenses over a couple of pay days.

The only person who benefits from this is the lender.
Don't do it.

Do you need it? Are you fairly self-controlled when it comes to finances?

We have an overdraft facility on our joint account that's been there for around 15 years and never been used but would cover us for a mortgage payment if needed. I quite like knowing it's there as back up if we had any very short term cash flow issues.