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    • Grezz24
    • By Grezz24 11th Sep 17, 11:03 AM
    • 4Posts
    • 0Thanks
    Grezz24
    Reduce Available Overdraft?
    • #1
    • 11th Sep 17, 11:03 AM
    Reduce Available Overdraft? 11th Sep 17 at 11:03 AM
    Hi All,

    I am looking at the options around increasing my credit score ahead of a mortgage application in around 18-24 months time.

    I have no outstanding debts, all paid off, i do have a default on my account but it will have cleared by the time i apply, hence my wait of 18-24 months.

    My question is around my overdraft, i have a £2000 overdraft (never go into it or use it). its the only 'credit' i have at the moment, and its reported onto my credit file every month (Halifax ultimate reward account). Is it best to reduce that amount my say £1000 so that i have less available credit to spend? or does this have no effect?

    Thanks in advance
Page 1
    • zx81
    • By zx81 11th Sep 17, 11:05 AM
    • 14,100 Posts
    • 14,778 Thanks
    zx81
    • #2
    • 11th Sep 17, 11:05 AM
    • #2
    • 11th Sep 17, 11:05 AM
    Leave it, but stay out of it. It show you are trusted but not reliant on credit.

    Remember that lenders will only be reviewing your credit history and finance - not your credit score, which doesn't give an accurate picture of anything.

    So work on creating good history, but never try to affect the score.
    • DCFC79
    • By DCFC79 11th Sep 17, 11:29 AM
    • 30,282 Posts
    • 19,157 Thanks
    DCFC79
    • #3
    • 11th Sep 17, 11:29 AM
    • #3
    • 11th Sep 17, 11:29 AM
    Do all you can to avoid going into your overdraft, IF you do happen to go into it and you get it sorted as soon as you notice it (if you check your accounts daily you would pick up on it and be able to correct it) Halifax might not even report it.
    Last edited by DCFC79; 11-09-2017 at 11:33 AM.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Grezz24
    • By Grezz24 11th Sep 17, 11:59 AM
    • 4 Posts
    • 0 Thanks
    Grezz24
    • #4
    • 11th Sep 17, 11:59 AM
    • #4
    • 11th Sep 17, 11:59 AM
    Thanks both, so its more beneficial so have a £2000 overdraft and show that i dont go into it (not used it for around 4 years now) rather than a £1000 overdraft which again i wont use.

    does this not affect my 'overall credit available'.

    When looking for a mortgage would i be better to approach Halifax first, who can see that i have a large limit, but never use it, so it shows i am in control of my finances. (current score is 770/999 on Experian so its showing as poor)
    • zx81
    • By zx81 11th Sep 17, 12:04 PM
    • 14,100 Posts
    • 14,778 Thanks
    zx81
    • #5
    • 11th Sep 17, 12:04 PM
    • #5
    • 11th Sep 17, 12:04 PM
    The 'overall credit' issue isn't that sensitive a factor. If £1 of overdraft tips you over the edge, you're a long way from being able to get a mortgage.

    All lenders will see the data from your credit files. Go wherever the best deal is for you. If you think you have a patchy history, use a broker.

    Remember to keep ignoring that credit score. Experian offer terrible mortgages in any case...
    • sourcrates
    • By sourcrates 11th Sep 17, 12:52 PM
    • 12,457 Posts
    • 11,855 Thanks
    sourcrates
    • #6
    • 11th Sep 17, 12:52 PM
    • #6
    • 11th Sep 17, 12:52 PM
    A chap in another post on here gained a mortgage, from a broker, with 4 old defaults on his credit file.

    It should be a doddle for you.

    Lenders recognize that people are only human, they make mistakes, non more so than with money, every lender has their own set of criteria they have to tick off the list, as long as your recent history is good, and its affordable, you should have no trouble.
    Last edited by sourcrates; 11-09-2017 at 12:56 PM.
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