To call 'bullshit' on not being eligible for overdraft as a SAHM

[ShouldiWork]

Apparently unless I have a wage of at least £500 per month they can't process my overdraft application further. Despite there not being a month in the last 20 years when that account has turned over less that 1.5K per month - whether through employment - or through being the 'housekeeping' account. And despite me having a 4K credit card with them that I'd happily give up to reduce my overall credit line with them.

It's a pain - because I write so many cheques for DC activities etc - and they can be cashed at unpredictable times, which is hard to keep track of.

I feel like I'm being forced into becoming a +1 on DHs current account in order to be able to benefit from normal banking functions like an overdraft buffer - and for various reasons this annoys me.

Signed:

The economically invisible woman

If it helps I was looking at a TSB account today that had an overdraft buffer - however I didn't look far enough into it to see what counted as income. May be worth a look

More contractual than being married and having DC ?

I just keep a float as a pp suggests. It is about 5-6 months' worth of housekeeping transferred in one go, topped up when it gets below a couple of months' spending. I find it better to budget with as I can book for bigger unexpected expenses without having to ask. I also use a smartphone app to track my spending, including anything that hasn't been cleared yet. So the money is allocated from my account in that, even if it doesn't get cashed straight away.

Have to admit though that I rarely write cheques these days. Even the smallest providers use some form of online payment, or just ask for cash in person.

I am a WOHM and I have a joint account where wages from both of us are paid in. I really don't understand why it is considered a +1 if you and DH have a joint account and his wages are paid into that. Surely his money is your money? I would think you can get a overdraft on this set up.

Banks can set their criteria how they like.

I still think it is discrimination tbh.
The OP says the account is active and I'm sure housekeeping money is a regular payment in.
There are lots of way people receive money other than an income.

I'm not sure how I have managed it then, they gave me 1k overdraft.
I have never used it but nice to know its there.
Have always been a sahm so not like they gave it me when I was employed or anything.
I know I still have it as well because I do online banking regularly.

Maybe check some other banks out OP and then if you find one close your other accounts with them, that will serve them right.

I'm thinking of swapping to another bank to get the better deals, was thinking Halifax.

It's the same where you probably can't get a mortgage. But could get one with a joint applicafion. Is your credit card new? Have you tried aoplying for a new one on your own? I would think you aren't qualified for that either.

morethan it might be it's harder to get credit now? Once you got credit on an old criteria they don't recheck them. Like my mortgage is based on my pre maternity break income. They don't check my income is really low currently.

I'm not sure how I have managed it then, they gave me 1k overdraft.
I have never used it but nice to know its there.
Have always been a sahm so not like they gave it me when I was employed or anything.

But that's what we are saying - if ALL banks refused to offer SAHM's overdrafts, then I could see it being discrimination, but it's just this one account with this one bank that doesn't seem to meet her needs at the moment and clearly your bank does, so it may not even be a common problem.

Like many other banks they are cutting down on 'non supported' accounts these days. Reasons include money laundering, lack of stability and that they only want financially lucrative customers.

They do not have to offer you an overdraft, or even a regular current account. You can look for others, but they may all be very similar these days. No pay, no play!

But I offered a straight swap: kill my 4k credit card and extend £500 overdraft. Total risk = less - even if circs & criteria have changed.

terrors I think my finances would become subsumed in DHs - because I have always earnt and spent less than him.

alloy last week I wrote cheques for
£66 (DS1 violin lesson)
£66 (DS2 violin lesson),
£5 (DS2 school trip)
£50 (Criminal background check for some tutoring work I'm taking on)
£127.50 (school dinners *2)
£377 (preschool fees)
£ 24.20 (football club for DS1)

All are cheque only - and will cash at their convenience

You are a bad risk so the bank is right not to 'lend' you money.

We can in hindsight say we wished this had happened before the subprime debacle as the world would be a much different place right now.

Things have changed significantly in the last year WRT credit lending IIRC. A lot of people I know are being told that their overdrafts are being reduced or cancelled completely and that credit card limits are being cut.

It's all part of the lovely new lending criteria that will also make it harder to get a mortgage. Try searching around to see what's available - I'm with Halifax and haven't had issues whereas my friends with Santander have been hit hard.

Twoterrors

I can see what you are saying, but if I'm not mistaken you are talking about income from an employer, which even though it may go down, you are still employed if they did decide to check.

My cc with overdraft I had from 2010, I wasn't employed and I'm still not.
I did manage the £700 whatever amount they asked for, but it was only housekeeping tc, and cb.
This probably means if they did start checking I would lose overdraft too and to me this is discrimination, especially if they accept zero contract hours as ability to pay an overdraft.

Kitty my dla (high rate for both) and tax credits are in access of £700 a month.

Try Natwest. They don't seem to have a problem giving overdrafts on accounts which don't have wages paid in.

You have to remove your business if the bank doesn't give you what you require from them. Otherwise they will continue to be rubbish.

I don't understand their logic - no one has a secure income. Jobs can be lost at any time.

I expect credit cards are dealt with by a different department that has different criteria, 'pots' of money, targets etc that are not offset-able against branch-based/retail lending. Common sense and overall risk won't be a factor.

How about opening a second current account with a cq book, then use that for cheques and every time you write one, make a transfer from your main account - works well for me and very quick if you have online banking. Also I put a £100 buffer in the cq account just in case I forget to make a transfer, but when I've made the transfer I put a big highlighter streak through the stub.

morethan yes I'm comparing my normal salary with my SMP. There is a huge change to credit lending now. We are planning to move and have been told they look at 3 months spending in the way we should spend minimal. They check stupid things like takeaway spending, holidays, clothes. And then decide you can't afford to pay the mortgage. But if my mortgage is higher I won't be eating out as much! It all makes no sense.

i know it shouldn't be this way.

shouldiwork I guess that's the bit we differ. I can't see how I would be subsumed! I'm on SMP currently and happily spending DH money. It's ours anyway. Same as in your case it's a family decision you SAH. I'm sure your DH is happy to support you financially. Credit cards or overdrafts.

Are they saying you must be employed or can you not just transfer from the other account so much by direct debit. Or just have a second joint account which only you use. Sometimes there doesn't seem to be a lot of logic in banking decisions.

So if you want an overdraft of £500, all you have to do is find an extra £500 from somewhere and transfer it in, as a one-off, keep all future income and spending as it would otherwise be, and your need for an overdraft is eliminated?

yes more contractual than marriage.
your husband isn't committed to paying you the money in that way/into that account -You could decide together to structure your life /finances differenly- and then there is no income to pay your overdraft

Which account is the credit card linked to?

And agree with others who say have a joint account. 'Housekeeping'

Maybe banks think anyone who asks for an overdraft lacks either money or organisation, so is a bad risk. Only people who neither need nor ask to borrow are worth lending to.

Why are you writing cheques instead of transferring BACS or setting up a regular payment schedule?