is using overdraft good to improve credit rating?

manub

Hi,

don't know if this is the right place, but I think that's the better place to ask this question.

I've got a £260 interest free overdraft on my account. I never used it. I read somewhere that using overdraft (and repaying it quickly, of course) it's a good strategy to improve your credit rating. Is that actually true? I could use some overdraft (then put money back from savings - money that I already need to spend), but I wanted to know if it's a good thing (spending money then paying overdraft back) or bad thing (so I'd first transfer money from my savings then spend it).

Thanks!

[Deleted User]

A very bad thing. It shows you can't live within your means.

ChopperST

Deleted_User wrote: »

A very bad thing. It shows you can't live within your means.

+1, also taking cash advances from your credit card is a red flag to lenders.

manub

Thank you guys. I'd rather take the money from my saving account then!