Overdraft mode

tangyfog

I have been living in overdraft mode for a few year now how about any one else?

also does it affect credit rating and getting loans and mortgages if you continously live in your overdraft?

Thanks in advance

Yargo1

Hi, i dont know but await the answer as it would apply to me too!

d3mon4ngel

I don't think it affects your credit rating, as long as you aren't going over your limit. As long as you stay within the authorised overdraft, then it's just like any other credit that you have (I think!).

It hasn't affected me, and checking my credit report always shows my overdraft balance as £0, even though I've been living in it for at least the past year or so. But that could be because my balance has always come back into the black for at least a few days after I get paid.

backinbusiness

Sorry to be a party pooper, but as overdrafts are usually repayable on demand - the bank could withdraw the overdraft facility at any time.

Best use this board to help you cut costs and get out of the overdraft if you can.

BiB

climbgirl

As long as you stick within the terms of the overdraft, it isn't going to impact your credit rating.

However - when it comes to mortgages, banks are starting to get a lot tougher with applications, checking people's spending habits as well as income, credit ratings etc. So yes, something like this could have an impact.

I'd work on getting out of it as quickly as possible. As a previous poster says, the bank has the right to withdraw it at any time and demand payment in full. Which could cause trouble for you.

josiebabie

backinbusiness wrote: »

Sorry to be a party pooper, but as overdrafts are usually repayable on demand - the bank could withdraw the overdraft facility at any time.

Best use this board to help you cut costs and get out of the overdraft if you can.

BiB

H4lifax did this to me, £580 all in one hit! Thankfully it coincided with a very good tax rebate so I could do it but there would have been no way I could afford it if it hadn't...

Mark2k4

Halifax also withdrew my overdraft leaving me £1200 in the red for a few months. Not certain about this but I've read somewhere that some lenders check how much of your available credit you are using, and if you're using a high percentage they are more likely to reject your application.

backinbusiness

Mark2k4 wrote: »

Halifax also withdrew my overdraft leaving me £1200 in the red for a few months. Not certain about this but I've read somewhere that some lenders check how much of your available credit you are using, and if you're using a high percentage they are more likely to reject your application.

See above posts - I am not now a party pooper, but potentially the voice of reason.

It can happen - it does happen - you would be stuck between a rock and a hard place.

Pay if off and amass some savings - good luck!

BiB

tangyfog

BiB

Thanks for that intel. I gotten so used to using it that I been really using it as an extension of my wages! Actually my bank did remove some of my other lending facilities £15k worth which really had a major impact on me as I wasnt saving any money as I knew I could borrow it at a drop of a hat and return it as and when. But they took it away from me and everyone else. They close that banking facility for all customers in UK. So it was a really shocker.

Thank I get paying of my numerous debt asap!