Personal Finance

Declined for overdraft despite high credit score

  • Last Updated:
  • Jun 11th, 2018 3:41 pm
[OP]
Newbie
Dec 7, 2011
7 posts
1 upvote

Declined for overdraft despite high credit score

I just switched banks today from Scotia to rbc. I was approved for a credit card but declined for overdraft. My credit score is around 840, I own a home, work full time and have no debt (other than mortgage). The rep couldn't tell me why it was declined. I have been with scotia for 8 years and didn't have any issues being approved for overdraft. Is overdraft that much harder to be approved for than a credit card?
15 replies
Sr. Member
Feb 1, 2010
872 posts
173 upvotes
You should check both credit bureaus. Sometimes, even at the same bank, CC will be approved based on Transunion, and Overdraft by Equifax. There may be errors on one of the credit bureaus. If you are sure both are correct, then ask the bank manager?
[OP]
Newbie
Dec 7, 2011
7 posts
1 upvote
Great suggestion, thank you! I've only checked Transunion, so I guess I better see what Equifax has on file. Thank you for the help.
Deal Addict
Sep 7, 2004
1599 posts
624 upvotes
Toronto
Maybe you need to be with rbc for a few months before they will extend overdraft to you? Based on what you're telling us it doesn't seem like you wouldn't qualify for that product. Maybe it's a policy issue where you have to be a client for a while first.
Deal Addict
User avatar
Nov 14, 2006
2535 posts
1732 upvotes
Waterloo
I've been with RBC all my life and despite not officially having overdraft, on the occasions where I accidentally overdrew on my account, they let the transaction through and just charged me the appropriate fees...
Congratulations!
Today is YOUR day.
You're off to great places!
You're off and away!
Member
Aug 16, 2006
212 posts
61 upvotes
I applied for overdraft protection and received a letter saying I was declined. Logged into my account a few days later, and there noticed they added the protection.
Deal Fanatic
Dec 12, 2009
5543 posts
3040 upvotes
Toronto
amcs76 wrote: I was approved for a credit card but declined for overdraft.
How much overdraft were you looking for? That might make a difference.
I'm inclined to agree with @gqbluez time & history are a factor.
Banned
Jun 6, 2016
361 posts
256 upvotes
Scarborough, ONT
My friend is a credit manager at RBC, they are ridiculously strict until you've been with the bank at least 6 months.
I also switched to RBC about 2 months ago, got a chequing account and $1000 limit on the cashback MC... I was surprised at the low limit, they said that's pretty normal for new customers who have had no previous business with RBC, regardless of credit score / history.
Newbie
Oct 13, 2016
13 posts
1 upvote
My wife landed as pr holder and no prior credit history in Canada.
When she opened bank account with RBC, They gave credit card with 2000 limit.
Deal Addict
User avatar
Mar 9, 2012
4005 posts
2865 upvotes
Kitchener
Alex383 wrote: My friend is a credit manager at RBC, they are ridiculously strict until you've been with the bank at least 6 months.
I also switched to RBC about 2 months ago, got a chequing account and $1000 limit on the cashback MC... I was surprised at the low limit, they said that's pretty normal for new customers who have had no previous business with RBC, regardless of credit score / history.

Interesting, when I opened up an low rate RBC Visa I was approved for $10,000 and a couple months later, they added a second *different* RBC Visa for $11,000. No idea why, and I don't even have a bank account with them.
Why can't we all just get along?
Deal Fanatic
User avatar
Jan 4, 2011
6041 posts
7469 upvotes
Montreal
Last year, I applied for a relatively small (i.e., $5k) credit limit increase on one of my RBC credit cards. They sent me a message saying that they required more info before they could give it to me (to which I never bothered replying), but they told me I was pre-approved for a $10k LOC. Bizarre. Weeks after (and no change in my credit score) I applied for another RBC credit card, and they approved me for it with a limit multiples higher than $5k. I have no idea how they determine these things.
Deal Addict
Jul 3, 2017
3859 posts
2807 upvotes
I'm surprised that so many people think overdraft protection is a good thing that you should apply for automatically. I've always considered it a negative, and I make sure that no bank has added it to my accounts without authorization. I don't have accidental overdrafts, and if any overdraft transaction is attempted against one of my accounts, I want to know about it immediately. I don't want the bank automatically loaning me money or taking it from my savings account to pay off a fraudulent transaction without even contacting me!
Member
Jul 2, 2015
254 posts
129 upvotes
OTTAWA,ON
Exp315 wrote: I'm surprised that so many people think overdraft protection is a good thing that you should apply for automatically. I've always considered it a negative, and I make sure that no bank has added it to my accounts without authorization. I don't have accidental overdrafts, and if any overdraft transaction is attempted against one of my accounts, I want to know about it immediately. I don't want the bank automatically loaning me money or taking it from my savings account to pay off a fraudulent transaction without even contacting me!
+1
Deal Addict
Nov 8, 2017
1556 posts
887 upvotes
I've got an uLOC as an overdraft. CIBC works like a chequing account. If I go under, it's 7.5% interest, not 20%.
Deal Expert
Aug 22, 2011
38177 posts
24360 upvotes
Center of Universe
User455957 wrote: I've got an uLOC as an overdraft. CIBC works like a chequing account. If I go under, it's 7.5% interest, not 20%.
That's no good either.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)