Will any bank give an overdraft/credit card if on benefits only?

Avalanche78

Hi everyone,
I let my authorised overdraft facility lapse with my bank, and now they won't let me have any overdraft as I'm not employed or retired. Ditto credit card. 
I don't want to get into debt but wanted a back-up / security in case a bill goes out before cash goes in anytime, and also want to build up my credit rating which is bad.
I receive Contribution-based ESA, PIP and Universal Credit for myself plus two kids which means quite a lot of money been going into the account for many years, but apparently that's irrelevant.
Does anyone know if any banks will give overdrafts to people reliant solely on benefits/UC or are they all like this?

poppy123456

Yes of course, some will. It will depend on your circumstances financially and your credit history. If you've got missed payments on your credit history then this could be why you've been refused.

Avalanche78

Thanks Poppy. My current bank didn't look at my credit history - they just say they won't accept applications from anyone not in paid employment/retired.

poppy123456

I know some banks will because I have a credit card with my bank and I don’t work and haven’t for many years. Though I very rarely use the card. I prefer to save for the things I need and pay in full, where possible.

ShirleyW

How big an overdraft have you asked for?
Many banks give an automatic overdraft of £50 or a £100 just as a safety net.

Avalanche78

I didn't get as far as being able to request an amount.

poppy123456

There’s no automatic overdraft with my bank. I don’t have one purely because I think it’s the worst thing you can have but that’s my opinion of course. 

janer1967

I have an overdraft in place but it was set up when I was working but been there for years can't remember the last time I used it probably about 6 years ago 

racyguy

poppy123456 said:

I know some banks will because I have a credit card with my bank and I don’t work and haven’t for many years. Though I very rarely use the card. I prefer to save for the things I need and pay in full, where possible.

Likewise we have two credit cards with a total of £19,000 of credit available. We are both in receipt of the SRP plus other state benefits and until recently we were receiving a means tested benefit. I must admit that we have never asked for an overdraft as to us it would mean that our budgeting is out of the window.