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Interest-free overdrafts, deficit banking and credit ratings

After a year's hard studying (honest!) I'm currently using the interest-free overdraft of my student bank account, and whilst working over the summer I was considering employing Martin's suggestion of deficit banking, leaving my overdraft at the size it is now and just putting my earnings in a savings account.

However I was wondering if using an interest-free overdraft facility affects my credit scoring, and whether I'd be better off paying it back asap?

Regards,

Wilystudent

Comments

  • skybluesaver
    skybluesaver Posts: 294 Forumite
    Hi wilystudent. Your overdraft will only affect your credit score if it shows on your credit report.
    Some banks don't report it. if yours does, it will show as outstanding debt
  • chaffey
    chaffey Posts: 10 Forumite
    Does anyone know which banks do this? And if they do how bad is it to have on your credit score (i.e. will it last along time?)
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