Any benefit to reducing my overdraft?

Phil3822

Catapa wrote: »

I would reduce the overdraft to the fee free £300. This also gives the bank (£700) more room in case you want to apply for a loan with them.

Really? So when applying for a loan they minus the OD from the total they would lend?

Does this apply to morgages as well.

ses6jwg

Different forms of credit are all scored differently.

I have seen this first hand.

I have had customer sit in front of me who are declined for a credit card and can't get an overdraft, but then get a UPL go to accept at close to the headline rate.

YorkshireBoy

Catapa wrote: »

I would reduce the overdraft to the fee free £300. This also gives the bank (£700) more room in case you want to apply for a loan with them.

Sounds like the OP has a Halifax/BoS Ultimate Reward account?

If so, leaving it where it is means £301 to £1,000 of borrowing costs only £1 per day. With your suggestion, inadvertently slipping over £300 will mean the charges jump to £5 per day.

Phil3822

YorkshireBoy, I am with Halifax ultimate reward. I like your point of view reference the £5 per day charge if I do go over.