Overdraft help please

rhi1983 · 11 June 2012 at 9:10AM

Morning,
I'm in a position to pay off my £950 overdraft and am not sure if I should cancel it completely or is it best to still have one? Another option is if I should just reduce it....
Interested from a Credit rating perspective really.

jobdone1 · 11 June 2012 at 9:19AM

i would reduce it to around £50 or £100 just as a buffer to stop charges should you be a couple of quid short one month but at this level its then managable in the future my option would be £50 but thats me but don't leave it at £950 two reason you may be tempted to use it and over time be back to where you started and secoundly if you where unfortunate to have some kind of card cloning i.e fraud attemps at you account its happened to me then you could find yourself in debt and fighting to get the money back. hope this helps

Moneymash · 11 June 2012 at 9:31AM

Consider what your yearly fees are for maintaining the overdraft at it's current limit. As previous poster said it would be good to reduce it so you can't run it up again. Also if you ever wanted other financial products from your bank, you would be in a more favourable position if your overdraft were significantly lower and you weren't in it.