Overdrafts and your credit rating.

Kratos3

Hi, I have used search but can't really find the direct answer.

I have been slowly rebuilding my credit rating after starting with a blank file, all had been done through my partner for 10+ years.

In the six months I've been at it, I've managed to get an overdraft on my Natwest account and wondered how to use it to help the rebuild process.

Should I use it but pay it back every month? should I not use it but keep it anyway? or does it simply make no difference?

Any advice would be very welcome

CLAPTON

times have changed and now being regularly in your overdraft is viewed as being a poor money manager
best not to use it at all except in a very rare emergency

mrs*84

I have been trying to improve my husbands credit rating as he has a CCJ. I got him an Aqua card, which is a credit card for people with bad credit. We use it for very small, low priced purchases and have set up a direct debit to pay off the full amount every month so we do not incur any interest charges. If you do not like the idea of this, you can get pre paid credit cards, where you pay a £5 monthly fee for them, but you have to put money on the card first before you can use it.
There is a page on the money saving expert website which explains how to rebuild your credit. I can not post the link but if you go to the "credit cards and loans" tab on the main home page, then "problem debt help"

Hope this helps x

KingElvis

It will show on your total available / used balance to potential creditors.

This is part of the bank madness imo, if you use it your crap with your lolly, if you don't, they take it away again.....LOL

needhelp88

I need a bit of advice, i got paid the other day but when i came to look at my account it seemed Natwest had reduced my overdraft by exactly the amount i had been paid.
Can they do this? I know about 6 months back there were a few people having this problem but i cannot find their posts.

any help is much appreciated

Amme

needhelp88 wrote: »

I need a bit of advice, i got paid the other day but when i came to look at my account it seemed Natwest had reduced my overdraft by exactly the amount i had been paid.
Can they do this? I know about 6 months back there were a few people having this problem but i cannot find their posts.

any help is much appreciated

Hi,

yes they can increase or decrease your overdraft at any time without notice, same goes for a credit card. I would not try to get it back to the limit it was for time being, they will probably decline it. It might be worth giving them a ring to find out why they did this. I would wait 3~6 months before reapplying though.