Overdraft affect credit rating?

andy1988

Hi,

I've got 2 overdraft accounts with NatWest, it seemed very good to be given 2 cards with no quibbles, then withdraw the £100 interest free OD from each and put it into a savings accounts, however, thinking it was too good a deal I looked into it and I've heard simply having an OD account (nevermind 2) can affect your credit rating, is this true? The benefits of being able to get a 0% for 12-14 months credit card far outweigh the interest on my £200 savings, so I'm thinking of closing them to increase my credit score, does anyone know if it's worth it?

I realise a similar question regarding overdrafts/credit score has been asked before but it didn't answer my question as it isn't an arranged overdraft, I don't pay an 'arrangement' fee and have never paid a penny of interest/fees on them, can anyone advise?

Thanks,
Andy

P.S. the second OD card had an increased cheque guarantee limit of £250 (previous was £100) for exactly the same account type, so I think I've done something right.

CLAPTON

Being permanently in an OD is often taken to show poor financial management or even financial distress; however as always it depends upon the scoring system of the potential creditor.