Declined for overdraft despite high credit score

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Jun 11th, 2018 3:41 pm

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Jun 8th, 2018 7:56 pm

amcs76 [OP]: Newbie; Dec 7, 2011; 7 posts; 1 upvote

Jun 8th, 2018 7:56 pm

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

Jun 8th, 2018 8:33 pm

quatchi: Sr. Member; Feb 1, 2010; 872 posts; 173 upvotes

Jun 8th, 2018 8:33 pm

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?

Jun 8th, 2018 10:01 pm

amcs76 [OP]: Newbie; Dec 7, 2011; 7 posts; 1 upvote

Jun 8th, 2018 10:01 pm

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.

Jun 8th, 2018 10:21 pm

gqbluez: Deal Addict; Sep 7, 2004; 1599 posts; 624 upvotes; Toronto

Jun 8th, 2018 10:21 pm

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.

Jun 8th, 2018 10:36 pm

cadave: Deal Addict; Nov 14, 2006; 2535 posts; 1732 upvotes; Waterloo

Jun 8th, 2018 10:36 pm

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!
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Jun 8th, 2018 10:43 pm

dimsum69: Member; Aug 16, 2006; 212 posts; 61 upvotes

Jun 8th, 2018 10:43 pm

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.

Jun 9th, 2018 7:06 am

ROYinTO: Deal Fanatic; Dec 12, 2009; 5543 posts; 3040 upvotes; Toronto

Jun 9th, 2018 7:06 am

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.

Jun 9th, 2018 8:03 am

UrbanPoet: Deal Expert; Jan 27, 2004; 50458 posts; 14772 upvotes; ONTARIO

Jun 9th, 2018 8:03 am

is this for the customer welcome offer? where they do a credit check before opening the account?
I always found that one kind of random... IF your credit is so good I bet you would get OD easily if you applied directly.

All my threads are upvote parties! All positive vibe post get upvotes.

Jun 9th, 2018 8:30 am

Alex383: Banned; Jun 6, 2016; 361 posts; 256 upvotes; Scarborough, ONT

Jun 9th, 2018 8:30 am

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.

Jun 10th, 2018 8:37 am

pinnaka: Newbie; Oct 13, 2016; 13 posts; 1 upvote

Jun 10th, 2018 8:37 am

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.

Jun 10th, 2018 11:03 am

jeff1970: Deal Addict; Mar 9, 2012; 4005 posts; 2865 upvotes; Kitchener

Jun 10th, 2018 11:03 am

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?

Jun 10th, 2018 9:54 pm

efrant: Deal Fanatic; Jan 4, 2011; 6041 posts; 7469 upvotes; Montreal

Jun 10th, 2018 9:54 pm

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.

+1

Jun 11th, 2018 10:22 am

Exp315: Deal Addict; Jul 3, 2017; 3859 posts; 2807 upvotes

Jun 11th, 2018 10:22 am

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

Jun 11th, 2018 10:29 am

parclub: Member; Jul 2, 2015; 254 posts; 129 upvotes; OTTAWA,ON

Jun 11th, 2018 10:29 am

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!

Jun 11th, 2018 12:03 pm

User455957: Deal Addict; Nov 8, 2017; 1556 posts; 887 upvotes

Jun 11th, 2018 12:03 pm

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%.

Jun 11th, 2018 3:41 pm

vkizzle: Deal Expert; Aug 22, 2011; 38177 posts; 24360 upvotes; Center of Universe

Jun 11th, 2018 3:41 pm

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.

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