0% overdrafts- Stoozing an option?

sloughflint

Been reading through lots of different posts and quite a few people seem to stooze their 0% overdrafts.
I nearly put £3300 ( 0% A& L overdraft)into savings for the 0% period for 12 months but was another postee warned of possible pitfalls. However a lot of you seem to do it.
Can anyone reassure me or definitely put me totally off the idea? Have never been overdrawn and always pay credit cards in full each month. What negative consequences can I face trying to get 5.15% interest on £3300 for 12 months? Is it worth it in the long run or am I just plain greedy?

sashacat

I've done the same thing with my A&L 0% overdraft after a recommendation here.I think I'm a bit slow as it had never occured to me...but it has now!

sloughflint

So you are not worried about possible effects on credit ratings etc? I don't know if it matters. Help! I can't decide.

grumbler

If you don't go over agreed limit this doesn't affect your credit rating (besides, possibly, A&L internal scoring). I am not aware of any 'possible pitfalls'.

a&akay

Go for it. No problems as far I am concerned. New log in appears to allow a request for an even higher overdraft. Have therefore applied for uplift from my £1k to £3k for transfer to wife's 5% interest free account. If not accepted, nothing ventured nothing gained.

littlemissmoney

I have an interest free graduate overdraft with HSBC, but I no longer use the account much. Ideally I'd like to put all the overdraft into my savings account. But do I need to make any repayments or keep the account "active"? I've read the t&c but that hasn't helped me. If I just have a DD for £1 a month set up will that be ok? Anyone done this?

sloughflint

This is the post which stopped me from going ahead the other day:
be careful with your od and read the terms and conditions. you usually have to service the od by 15% per month (depending on which bank) of whatever it is to keep it or it will can be withdrawn at any time if not kept within terms & condit.

And if your seen to be living in your od will not be good for your behavioural score with your bank, even if you are servicing it they can still withdraw it from you after 12 months.

One more thing to remember od are now shown on bank accounts on credit files and can show up as late payments against the account on your credit file if not used within terms and conditions.
Wouldnt you be better off using a 0% cc and sticking that into a high interest acct like the stoozers for like 12-15 months...the interest you will be paying to stash your od in a high interest acct is surely no where worth paying the interest on it consider the highest amount you can earn in a high interest acct is roughly 10%
Any further response to this ?

a&akay

You pay 0% for the life of the overdraft deal, 1 year. After this you will pay the % in the T&Cs. You do not have to pay any minimum payment, it is an overdraft not a CC. Make sure you note the date of the end of the deal, ring if unsure, and pay in the amount to cover the overdraft beforehand, allowing for the usual time lag for such payments.

littlemissmoney

But if I have an account that sits at -£1,500, with no movement what so ever, won't HSBC withdraw my overdraft facility?

homersimpson_3

has anyone actually applied for increase to overdraft and then moved the lot into savings account- if so what 0% of salary should you ask for?

tomstickland

I've had an A&L Prem direct account for 3 months now. Can I use the online OD facility to apply and still have 9 months of 0% on it?