Should I keep the overdraft?

andy.m_2

I used to have £1500 OD with Santander, this year I have managed to break it.

I was doing so each month by whatever was spare and using online banking to reduce it accordingly.
Thing is, you cannot reduce it online to zero, the minimum is £50.
Which got me thinking, should I bin it completely (I no longer use it) or should I keep it on unused as a line of credit for keeping my score up for when we plan to move up on the property ladder in a year or two?

PeterS_48

A regularly repaid credit-card and existing mortgage account would be infinitely preferable to having an OD with a £50 debit balance!

kayla3600

I asked a similar question earlier on today. And the general idea was to get rid of it, which I am planning to do. If you have no other means of credit then yes it would be worth keeping for when you will be looking at mortgages etc. When we got our mortgage I had an overdraft of around £200, but no credit cards, and the mortgage went through without a hitch

GeorgeUK

I agree. A £50 OD is not going to be of much benefit and will do very little to improve your credit rating.

andy.m_2

Thanks.
I have an existing mortgage and a card that is paid monthly.
Was just thinking about credit lines that were well behaved and whether they would help at all.

Thanks all