Credit Rating Question

Nervy

Hi,

I am currently shifting a (small) debt from a credit card to another existing card to take advantage of a 0% offer. I have also been told that I can use the offer to clear my overdraft on my current account. I have done the sums and from an interest/fees point of view it would be worthwhile.

My wages put my current account in the black once a month, but by the end of the month I'm usually overdrawn by around £800 (this figure is slowly reducing).

I am tempted to pay the overdraft off with the card, as then all my debt will be in one place and it will be easier to monitor my progress with reducing it, but I am concerned about my credit score. I have done a credit check and I can see that my overdrawn current account shows a balance of £0. So if I were to out an extra £800 on my credit card would it have a negative effect?

If transferring to a card would be bad for my credit score I would prefer to remain overdrawn, as I am anticipating needing a car loan within the next 6 months.

sfax

It depends. The prospective lender will just see the net result of the transfer not the transfer itself.

I would be more concerned with continually dipping into my overdraft every month. If you wanted a loan from your bank, this would be seen as a negative. They log things like the number of days in each month you were overdrawn