Does an account without overdraft affect score?

Options
spare_one
spare_one Posts: 41 Forumite
First Anniversary First Post
in Budgeting & bank accounts
Hi

Can a bank account which doesn't have an overdraft allowance or any credit card affect my credit score?

If I switch to a different bank can this have any affect?

And does it make any difference if I had such an account open for many years?
Don't spend time saving less money than you could earn in that time on minimum wage...:laugh:
«1

Comments

  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    Options
    spare_one wrote: »
    Hi

    Can a bank account which doesn't have an overdraft allowance or any credit card affect my credit score?

    If I switch to a different bank can this have any affect?

    And does it make any difference if I had such an account open for many years?

    Don't concern yourself with a number lenders don't see, what matters is the credit history is correct.
  • spare_one
    spare_one Posts: 41 Forumite
    First Anniversary First Post
    Options
    Do lenders consider either of those things good or bad behavior?
    Don't spend time saving less money than you could earn in that time on minimum wage...:laugh:
  • SnowTiger
    SnowTiger Posts: 4,461 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    spare_one wrote: »
    Do lenders consider either of those things good or bad behavior?

    An overdraft is a line of credit. It may have a positive affect, especially if it isn't used.

    Having an account for a long time is generally seen as a good thing. Credit applications often ask how long you've been your your bank.
  • stehouk
    stehouk Posts: 412 Forumite
    First Anniversary First Post
    Options
    I never have an overdraft and i don't ask for one when switching, i might be wrong but i think the banks look a little bit closer at you and your'e history if you ask for an overdraft as it is a line of credit, having credit cards with regular small usage and paid off in full every month can boost your'e score if that's what you are after, as mentioned on here though it's your'e history that matters.
  • Westie983
    Westie983 Posts: 5,213 Ambassador
    First Anniversary Name Dropper Photogenic First Post
    Options
    spare_one wrote: »
    Hi

    Can a bank account which doesn't have an overdraft allowance or any credit card affect my credit score?

    If I switch to a different bank can this have any affect?

    And does it make any difference if I had such an account open for many years?

    Switching account can reduce your credit score, as its a new account, but its nothing too much to worry about it repairs itself each months its opened.

    Overdraft can especially if you use all of it or near the limit, again repairs itself as you reduce it month on month...

    Having account opened for years is looked on favourably as it shows you can keep an account in order...

    Westie983
    I’m a Forum Ambassador and I support the Forum Team on the Banking & Borrowing, and Reduce Debt & Boost Income boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySaving Expert.
    Save 12k in 2023 #58 Total (£4500.00) £2500.00/£5000 = 50.00%
    Sealed Pot Challenge ~17 #24 Total (£55.00) £0.00/£500 = 0.00%
    Xmas 2023 £1 a Day #13 Total (£85.00) £344.00/£365 = 94.24%
    Virtual Sealed Pot #1 Total (£500) £550.00/£500 = 110.00%
    £2 Savers Club 2023 #17 Total (£25.00) £45/£300 = 15.00%
    The 365 1p Challenge 2023 #7 Total £656.19/£667.95 = 98.23%
    Total £4095.19/£7332.95 = 55.84%
  • spare_one
    spare_one Posts: 41 Forumite
    First Anniversary First Post
    Options
    Thanks.

    Where can I find info on the subject from an 'official' source?
    Don't spend time saving less money than you could earn in that time on minimum wage...:laugh:
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Options
    Official source for what?

    That the scores are made up?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    Options
    spare_one wrote: »
    Where can I find info on the subject from an 'official' source?
    An underwriter, systems analyst, programmer, or 'Head of Risk' working for one of the banks. Please do let us know if they back up, or not, what the 'unofficial' sources here say.
  • Superscrooge
    Superscrooge Posts: 1,171 Forumite
    First Anniversary Name Dropper First Post
    Options
    spare_one wrote: »

    Where can I find info on the subject from an 'official' source?

    Not sure whether the Daily Mail counts as an official source?? But this was a recent article about how Experian calculates your score

    http://www.thisismoney.co.uk/money/cardsloans/article-5414557/Forget-pay-bill-hurt-credit-rating.html

    In many ways it reinforces the argument to concentrate on the information in your credit file and not get obsessed by your actual score.
  • spare_one
    spare_one Posts: 41 Forumite
    First Anniversary First Post
    Options
    I checked that link but couldn't find anything about an account without any credit (without an overdraft).:huh:
    Don't spend time saving less money than you could earn in that time on minimum wage...:laugh:
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.6K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.7K Work, Benefits & Business
  • 608.7K Mortgages, Homes & Bills
  • 173.3K Life & Family
  • 248.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards