Exceeding Overdraft Limit

loveandlight

If you have an overdraft limit of £200 and you exceed that limit by say £350 and the bank allow it, does it mean the bank will then put something adverse on your credit file?

Thanks for any replies

StAnToN_2

It will most certainly affect your internal credit score with the bank in question if this is a regular occurence then I do believe the bank will put an adverse mark on your credit file, yes.

YorkshireBoy

Possibly. It depends on how the specific bank approaches such things. For example, you might have to be over your limit for a complete month (or more) or be over on your monthly statement date or the CRA reporting date.

Re "something adverse", they could put a '1' on your file and/or just report your balance, ie:

Overdraft limit: £200
Present balance: £350

ShelfStacker_3

Some banks do, some don't.

At any rate, it's something to be avoided.

naijapower

If you are overdrawn for a complete month, it is likely they would mark your file

Emma37

You could try asking the bank to increase the limit allowed on your overdraft. That would avoid worrying about any repercussions if you go overdrawn by more than £200.

loveandlight

I thought so as that is what my friend is planning on doing but I've told her not to.

loveandlight

posted by Emma37 You could try asking the bank to increase the limit allowed on your overdraft. That would avoid worrying about any repercussions if you go overdrawn by more than £200.

Thanks Emma. It's doubtful whether they would allow an increase as she is already highly geared but she only needs it for about 5-10 days max so we'll have to get our heads together and see how else she can get the extra money together.