Removing overdraft limit

tomwakefield

I've currently got a £750 overdraft allowance on my current account, which I haven't touched in years, and I'm not going to any time soon. Is there any benefit (e.g. credit report wise) in asking them to remove the facility completely?

Lokolo

No not really. Keep it incase of emergencies. You may find the bank will remove it at some point.

pwuk

I would keep it as a buffer.

The amount is small and will not adversely effect your credit rating etc.

YorkshireBoy

tomwakefield wrote: »

Is there any benefit (e.g. credit report wise) in asking them to remove the facility completely?

I'd say quite the opposite. A £750 facility reporting £0 usage month on month shows you're managing your day to day finances quite well.

Account conduct will be reported to the CRAs as either 'U' (unused) or '0' (no payments bounced, everything in order).

When you factor in the buffer already mentioned, which will cover any mishaps, it doesn't make any sense to close the facility.

fozmcfc

I have a £5000 overdraft which I haven't used a penny of in over 2 years and only used it once in about 5 years.

It doesn't seem to have done me any harm, I've been accepted for 4 Credit Cards over the past 2 years or so.

datlex

i would keep the overdraft. It is proof of good credit history. Also you never know when you will have issues which mean you have to temporarily use it.

MichaelCR

tomwakefield wrote: »

I've currently got a £750 overdraft allowance on my current account, which I haven't touched in years, and I'm not going to any time soon. Is there any benefit (e.g. credit report wise) in asking them to remove the facility completely?

Keep it.

Incase you ever need to chip into it in the future, Instead of dipping into an unarranged overdraft which is very costly.