Does overdraft affect credit rating?

fatboyonadiet

I recently reduced the credit limit on my MBNA card as I didn't need it and probably had too much available credit, but is it worth reducing my overdraft too? It's nearky £3,000 and I very very rarely use it and probably only need a couple of hundred for emergencies - any thoughts?

YorkshireBoy

fatboyonadiet wrote:

I recently reduced the credit limit on my MBNA card as I didn't need it and probably had too much available credit, but is it worth reducing my overdraft too? It's nearky £3,000 and I very very rarely use it and probably only need a couple of hundred for emergencies - any thoughts?

Does it actually "show" on your credit report? If you've had the account/facility for some time, the chances are it won't be shown - I know mine isn't.

If it does show, then reducing it will help further credit applications due to the reduced available credit.

Also, whilst the O/D limit might not be on your CRA report, the chances are that it will be on your bank statements - something to bear in mind if you appeal a rejection and have to submit 3 months statements.

wigginsmum

My overdraft doesn't show on my credit report.

Jules

fatboyonadiet

I don't think it does, need to check my report tonight.

tattooed_lady

My overdraft with Halifax shows on all three CRA's!!