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    • Eleanornewry
    • By Eleanornewry 12th Oct 16, 11:33 AM
    • 3Posts
    • 0Thanks
    Eleanornewry
    Credit score and overdraft
    • #1
    • 12th Oct 16, 11:33 AM
    Credit score and overdraft 12th Oct 16 at 11:33 AM
    Hi all,

    I recently swapped my student current account with a £600 overdraft limit for a reward current account with no overdraft. This was intentional as I no longer wanted to use the overdraft facility.

    My credit report refreshed today, and even though it does not yet show the overdraft change, my score has dropped by 14 points. Could this be due to the fact that I no longer have access to an overdraft? If so, should I apply for one to help my credit score?

    I really want to clean up my credit score but don't want to do more damage than good in the long run.
Page 1
    • Chrism899
    • By Chrism899 12th Oct 16, 11:39 AM
    • 12 Posts
    • 2 Thanks
    Chrism899
    • #2
    • 12th Oct 16, 11:39 AM
    • #2
    • 12th Oct 16, 11:39 AM
    It's more than likely because you've opened a new account. Any new accounts drop the score of your credit score until they've been open for at least 6 months. I wouldn't worry about a drop of 14 points tbh
    • Eleanornewry
    • By Eleanornewry 12th Oct 16, 11:43 AM
    • 3 Posts
    • 0 Thanks
    Eleanornewry
    • #3
    • 12th Oct 16, 11:43 AM
    • #3
    • 12th Oct 16, 11:43 AM
    It's more than likely because you've opened a new account. Any new accounts drop the score of your credit score until they've been open for at least 6 months. I wouldn't worry about a drop of 14 points tbh
    Originally posted by Chrism899
    Thank you for your thoughts. Would this be the case even though my account is technically still the same account, i.e. account number and so on have remained the same, but the account type has changed?
    • zx81
    • By zx81 12th Oct 16, 11:44 AM
    • 9,388 Posts
    • 9,221 Thanks
    zx81
    • #4
    • 12th Oct 16, 11:44 AM
    • #4
    • 12th Oct 16, 11:44 AM
    Don't worry about any change in your credit score. It has no meaning and will react negatively to any change in your files.

    Just manage your accounts in a way that look responsible to lenders.
    • Chrism899
    • By Chrism899 12th Oct 16, 12:07 PM
    • 12 Posts
    • 2 Thanks
    Chrism899
    • #5
    • 12th Oct 16, 12:07 PM
    • #5
    • 12th Oct 16, 12:07 PM
    Thank you for your thoughts. Would this be the case even though my account is technically still the same account, i.e. account number and so on have remained the same, but the account type has changed?
    Originally posted by Eleanornewry
    No idea, I'm just going off what happened to my credit score when I opened new accounts, I presume it must have something to do with that but I wouldn't bother getting a new overdraft just because of a 14 point decrease. By next month it will have gone up again anyway.
    • Eleanornewry
    • By Eleanornewry 12th Oct 16, 12:48 PM
    • 3 Posts
    • 0 Thanks
    Eleanornewry
    • #6
    • 12th Oct 16, 12:48 PM
    • #6
    • 12th Oct 16, 12:48 PM
    No idea, I'm just going off what happened to my credit score when I opened new accounts, I presume it must have something to do with that but I wouldn't bother getting a new overdraft just because of a 14 point decrease. By next month it will have gone up again anyway.
    Originally posted by Chrism899
    Yeah I have heard about this, didn't think it would affect me though since technically it's not a new account. Who knows! Thank you
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