Bank Overdraught

littlefred

I am trting to decide on a Personal Loan however, although I have a good credit score I have been overdrawn on my Current Account overdraught during the past year.

Can anybody tell me whether this will affect my application - is an overdraught counted as 'credit'?

Many Thanks to anyone who can offer any advice.

jonesMUFCforever

It is counted as credit because the bank have deemed you creditworthy of whatever you limit is.
If you have used and paid it back this is a plus if you have been over your limit in unauthorised overdraft then it is a minus.

If you are worried about what's in your credit report send off for a copy - it will only cost you £2.

littlefred

Thanks for the advice!

I already have a copy of my credit report, which is good.

The reason I am a little confused is that although I have been over my overdraft limit a few times this year it is not mentioned on my credit report, and doesnt seem to have affected it. Justw anted to get clarification on it as I have worked hard to get my credit rating to a good status and am looking for a loan at the moment and the last thing I want is to apply for a loan and be declined due to this overdraft business which will adversly effect my credit rating.

Once again thanks for the advice, if anybody else has any other handy advice please get in touch!

jonesMUFCforever

Have you tried the bank where you have the overdraft?
They will know you as well as anyone.

saucy77

I lived in my overdraft for over a year, and have managed to get credit from my bank as well as other places.
Obviously clearing off the overdraft and various credit agreements I have dotted here and there, but it didn't affect my credit score.

I still have the overdraft there if need be, but desperately trying to keep out of it now.