Overdraft interest rate - credit rating HELP!

KerryGold

Hi MoneySavers I'm not sure which board is best to post this!

I've regularly read this board but now I need some advice that I can't seem to find anywhere else. I want to know how long between applying for credit items is best to wait so as not to impact on your credit score.

Here is my situation:

I got about £4000 in debt while finishing up my PhD - I wasn't able to work as I was studying but I had very little money coming in. Since starting work about 18 months ago I've been working hard at clearing my debts and am now down to approx £2200 owing (I also have about £800 in an 8% ISA for rainy days - this money will not be moved as it's a regular saver). I have £700 on a credit card (opened in June, balance transferred 0% interest six months, clearing £100 per month currently, previous card cancelled by me on clearing of balance) with a £3600 limit. The other £1500 are on 2 overdrafts (halifax moneyback £600 limit - this is my working current account and I hover near the limit, and Smile £900 - £2000 limit) that I am paying interest on. I want to close the Smile account when the debt is clear.

Also my car recently died so I have just taken out a £4000 (over 3 years) loan to buy a newer one (although I applied for two to check out rates). In doing this (through Zopa) my credit score was assigned at 406 by Equifax.

So - my question is this: What to do with the £1500 in overdrafts? The smart thing is to move it to somewhere where it's charging me 0% or at least less interest. Now I have loan repayments to make I'll be paying off £175 from the overdrafts per month (this is on top of the £100 on credit card and the loan).

I'm trying to decide which would be the best and least likely to impact on my credit rating (which is mostly down due to late CC payments and going over my overdraft limit when I didn't get paid a couple of months ago). Following Martin's (and yours!) advice I'm thinking:

Either
(a) Apply for an Egg Money card, transfer all the £1500 onto that and then onto my 0% card - or a new life of balance transfer?
or
(b) Apply for the A&L current account (0% interest) - see if they'll give me a £1500 overdraft and get my current balances moved there.

So which do you think is best, and bearing in mind my recentish credit card, credit rating and new loan WHEN should I be doing this?

I will not be missing any more payments I promise!

Thanks!
K x