New Bank Account - overdraft given!!!

bb23

OK, i have defaults on my credit report, but applied for a parachute account with Cahoot, in order to just be backup if HSBC close my account after i try to claim my charges back

well

they have given me a £500 overdraft and didnt question my application, even though loads of other banks wouldnt accept me

i just got given credit basically!

i've emailed them to ask them to take it off, as obviously, its a £500 DEBT, which is essentially a step back in all my hard work.

Does anyone think i should keep the overdraft? and also, shall i switch to using Cahoot as my bank while im in the process of claiming off HSBC, or wait till they pay my charges back to me before i switch accounts.

magentadreamer

I won't keep the full £500 O/D but have a little buffer zone of say £50 -just in case you miscalculate things and end up accidentally over drawn it's easily done.

bb23

Thank you, the first £100 is interest free so i guess, if i cut it to £100 or less i wont have to pay that? to be honest im kind of glad its there as im expecting my 2nd baby in august and will be on maternity so if things get tight its a fallback in extreme circumstances i guess