What is the problem with my Credit "rating"

ValHaller

locotoro wrote: »

- shift my CC balance on to my OD and close my CC.

Is it better to use a OD or a CC? Aside from the monthly fees do both affect the credit status in equal measure?

No, keep out of your OD. The OD can be recalled without notice and if you cannot clear it, you will have a default or be forced into an arrangement. This could seriously scupper your attempts to clean up your credit record. Shift the OD to your CC.

locotoro

~Beanie~ wrote: »

Electoral roll doesn't ask who is the property owner, only who lives there and is eligible to vote. Are you on the electoral roll?

yes, sorry I was actually listed additional info (ie I'm on the electoral roll and my wife is a property owner) rather than asking a question. But thanks for the response any how

yes I am on the electoral roll

locotoro

Wow, i hadn't considered the OD could be recalled. Wish I hadn't closed that card.

Is it worth trying to obtain a balance transfer card to move the OD off - although I guess this is unlikely that I would be accepted?

Tixy

How long realistically do you think it will take you to pay off the overdrafts if you focus on them first?

Based on what you have said about your credit file you may struggle to be accepted for a new card that would allow you to transfer to your bank account (most cards do not). But the only way to know for sure would be to try, don't forget to factor in the cost of the money transfer fees if you are considering it).

Banks don't generally recall overdrafts for no reason, there is usually a trigger that would cause them to look closer at the account (going over the limit, having items refused, lack of activity through the account).

locotoro

Tixy wrote: »

How long realistically do you think it will take you to pay off the overdrafts if you focus on them first?

Based on what you have said about your credit file you may struggle to be accepted for a new card that would allow you to transfer to your bank account (most cards do not). But the only way to know for sure would be to try, don't forget to factor in the cost of the money transfer fees if you are considering it).

Banks don't generally recall overdrafts for no reason, there is usually a trigger that would cause them to look closer at the account (going over the limit, having items refused, lack of activity through the account).

I could pay off both ODs in 4 months of so. Now you've just said that is my next mission

izools

To help, don't just reduce the overdraft balance, but reduce the limits in toe each month to prevent you from being able to spend up on them again

locotoro

izools wrote: »

To help, don't just reduce the overdraft balance, but reduce the limits in toe each month to prevent you from being able to spend up on them again

I see what you mean but i'm concerned that I may not have access to any monies in an emergency??

ValHaller

izools wrote: »

To help, don't just reduce the overdraft balance, but reduce the limits in toe each month to prevent you from being able to spend up on them again

With some banks this results in a credit search each time, which goes on your credit record and makes switching cards or whatever more difficult. Plus banks are like vultures - reducing your limit each month is a sign like the smell of the blood of an injured animal.

Part of becoming debt free is being disciplined anyway - and able to resist spending to an overdraft limit because it is there.

Stewart_78

Our bank pulled an 18k overdraft over night. It was a business account though. The trigger was simply a sector warning in the business sector we were in. We had behaved perfectly up to that point. It nearly finished my company and has left me in the state I am in today as I stupidly piled in to save it with my credit cards, which they then ramped to 30% within weeks.

Banks will do what they like. I would be very wary of running an overdraft unless it's a very temporary cashflow thing.