Overdraft

shezam

Hi all,

I had a £300 overdraft with Santander which was currently maxed out. Never had anything going into that account but decided last month to pay it off.

Question is, now its paid off in full, should I ask them to close the account? Trying to build up a better credit rating. Not sure whether to close the account, or keep it open but never use it. What would you do?

Thanks
Sx

shezam

**** bumpity bump ****

KingElvis

Cancel the overdraft but leave the account open?

I would cancel the OD so you're not tempted to use it.

smartiedriver_2

It depends if you think you will use it again. There is little point retaining it 'for the sake of it' and if it's dormant it won't add value to your credit rating anyway.

cottager

Could there still be any outstanding interest/charges to pay, not yet charged to the account? -- could be a reason to keep it open a little while longer, just to be sure.

MoneySaverLog

smartiedriver wrote: »

It depends if you think you will use it again. There is little point retaining it 'for the sake of it' and if it's dormant it won't add value to your credit rating anyway.

One trick to ensure the account does not go dormant is to cycle a pound through these accounts every month. Always been told never to close a current account as if they are run well it will add positives to your score :-)