Taking more credit to improve credit rating

AfterDark

old post Delete

onlypaddy

i wouldnt have thought that

any other creditor will take a look at the amount of available credit and probably reject based on that alone

AfterDark

That is exactly what I was thinking

exel1966

AfterDark wrote: »

I have a friend who has taken an overdraft of 11k on her current account even tho she only earns 15k'ish a yr.

When I asked her why she has done this she said having the credit available and not use'in it proves she's credit worthy and improves her rating. This doesn't sound right to me, but i'm not really clued up in this area, can some one please set me right here, Thank

Sounds like a yarn to me. Banks don't agree to OD limts that high against such a small salary.

AfterDark

exel1966 wrote: »

Sounds like a yarn to me. Banks don't agree to OD limts that high against such a small salary.

I've seen the letter from the bank, I asked to see it as thought she was pulling my leg or that it was really £1100 and she was confused. But no the halifax have given it to her :eek: Thought they had to be responable lenders after the ression but clearly not.

PROLIANT

AfterDark wrote: »

I've seen the letter from the bank, I asked to see it as thought she was pulling my leg or that it was really £1100 and she was confused. But no the halifax have given it to her :eek: Thought they had to be responable lenders after the ression but clearly not.

What happened to irresponsible borrowing?

Come on, where do the banks draw the line here?

With regard to the Halifax offering an 11K overdraft I think there has been a system error - you can’t have an overdraft greater than £5K!

AfterDark

PROLIANT wrote: »

What happened to irresponsible borrowing?

Come on, where do the banks draw the line here?

With regard to the Halifax offering an 11K overdraft I think there has been a system error - you can’t have an overdraft greater than £5K!

You can have an OD larger than 5k, had mines at 6-7k at one point it has to go through there underwriter dept tho. Really shocked hers is at 11k, Cannot understand why the bank would allow that. Think there mad for allowing it, completely agree it is irresponsible borrowing but surely they should have refused after XXX amount. 4k off someone's annualy salary is madness. No idea where she has got the idea it boosts her credit rating.

chambta

The pre-assessment page I have offers me £21k on my RBS account.

paulmcerlean

this would definately not make her credit worthy - the opposite in fact.

The limit will show on her file. Every other lender will likely refuse her as she will probably, if she has other credit, be exceeding her salary in used and available credit.

she is fooling herself.

imagine spending that amount of money on an overdraft, and then next month or some time in the future, it being recalled and having to pay it back instantly. And at £5 a day in fees with the Halifax, that would not be pretty.