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Difficult Decision

PaulDonn
PaulDonn Posts: 41 Forumite
I need to buy a car in the next few weeks and i am undecided on how to purchase it.
I have just sorted my credit problems out, from owing 12k on credit cards and overdraft, i now only owe 2k on a credit card.
I have just paid the last of my overdraft off, of 3.6k. My overdraft limit is 7k.

My equifax credit file will update within the next fews days to show that i owe only a little and have never been late for a payment in over a year. (FYI - equifax update there details around the 12-14th of each month)

I know that even having credit available can damage my rating, so my predicament is: do i take my overdraft limit away and not have one. Then try to apply for a loan; or use the overdraft to buy the car ?

If i remove the overdraft and apply for a loan and get declined then i have a real problem.

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    having credit available doesn't, in general, damage your credit rating but having missed payment does
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Speak to your bank first - they will tell you whether you are eligible for a loan without actually credit scoring you.
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