Overdraft and Savings

Student59

Hi

I have a student bank account with £1000 0% overdraft. I do not need to use this as I have saved enough through part time work. Using the overdraft to add to my savings account will obviously make use of the overdraft 0% benefit. I'm not too sure how credit ratings work so the only thing stopping me from using the overdraft to top up my savings account is a possible negative affect on my credit rating. What would you guys suggest, and could somebody explain how the overdraft will change my credit rating?

Thanks

J

00ec25

an overdraft is a temporary facility, it is not a borrowing facility ie. a loan

in principle if you remain £1,000 overdrawn month after month the bank has the right to call in the overdraft "on demand" so if you "borrow" from your overdraft and invest it then make sure you have instant access to your "savings" so you can repay when requested

check the conditions of your account as student accounts will be a bit more relaxed and should detail how long you can remain overdrawn before they get excited

CLAPTON

in general 'living' in an overdraft is bad for your credit rating; however if it has 0% interest this will show on your credit file and is generally seen as OK.

Many many students do exactly what you propose as there are usually allowed to stay in the OD (at 0%) for the full period of their time at Uni (and often a year or so after)

just make sure you clear in when you leave uni and it starts to be interest bearing