does cancelling your overdraft cost/do anything negative?

snowqueen555

If I close an overdraft before its contracted date, does it mess up my credit or anything like that, or will I get charged? This is with HSBC.

I'd just like to get rid of it, I am in credit by the way and I can't find out any information about it what happens if I close it early.

When I click to cancel it online, they point me to the terms and conditions, I gave read everything there but it doesn't say anything.

Before you decide to cancel your limit we strongly recommended that you read about our Overdraft Services.

https://www.hsbc.co.uk/1/2/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLN413CnEESZnFW8Ybm-pHoggZxDsiRHw98nNT9YOAMpHmQCFDUy8n_aic1PTE5Er9YH1v_QD9gtzQiHJvR0cAEwismQ!!/delta/base64xml/L3dJdyEvd0ZNQUFzQUcvNElVRS82XzVfOEo2

4$£&*(£$&*(!

It will not mess up your credit file unless there is a payment due and you miss it (which shouldn't apply as you say you are in credit).

As for charges I would speak to HSBC since they have so many different products, only they can tell you if a cancellation fee applies and if you can cancel in your specific situation.

Whilst it may not serve a specific use to you, it may be something you wish to keep. My bank gives me a stupidly high overdraft (over £2k) that I will never use, and if I go into it yes there are fees but they are nowhere near as bad compared to if I didn't have an overdraft and it was an unauthorised overdraft I used. So you may want to keep it for emergencies?

Edit - one other thing I didn't mention is you could always consider reviewing the figure with HSBC if you think it is too high. One thing that can affect credit scoring (remember scoring is different to your credit report, the report is specific facts people know about you and is recorded with the credit agencies, credit scoring is different according to which company you want to do business with and you're scored based on risk and profitability to that company). If you have too much credit available that can affect your credit score.