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Overdraft on credit rating (help)

Claxbenz
Posts: 1 Newbie
Hi guys
Bit of background - I work full time and don't earn a huge amount of money (I'm 23) and have just invested in my first house.
I've had a credit card for the past 2 years and in that time spent around £10k all of which has been paid off in full and on time.
I have never had an overdraft on my Natwest current account however last week was granted a £1k limit as I'm running tight with large expenses such as paying builders/building materials etc. I was a student until July 2011 so was given this limit willingly.
What I wanted to know was whether it was ok to use the facility for periods of time around a few weeks or so? I hate being overdrawn but was wondering whether it affects your credit rating/whether it's frowned upon by lenders to use an overdraft. I wouldn't max it out it would probably be a few hundred quid for a couple of weeks a month until I get paid again.
Thanks for your help - google results are very mixed on this topic.
Bit of background - I work full time and don't earn a huge amount of money (I'm 23) and have just invested in my first house.
I've had a credit card for the past 2 years and in that time spent around £10k all of which has been paid off in full and on time.
I have never had an overdraft on my Natwest current account however last week was granted a £1k limit as I'm running tight with large expenses such as paying builders/building materials etc. I was a student until July 2011 so was given this limit willingly.
What I wanted to know was whether it was ok to use the facility for periods of time around a few weeks or so? I hate being overdrawn but was wondering whether it affects your credit rating/whether it's frowned upon by lenders to use an overdraft. I wouldn't max it out it would probably be a few hundred quid for a couple of weeks a month until I get paid again.
Thanks for your help - google results are very mixed on this topic.
0
Comments
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Overdrafts are best for short term borrowing and won't harm your credit rating provided you remain within the agreed limit.
They can be useful when there is a cash flow problem. Try not to live in it as that could be frowned upon by potential lenders.You may question anything I say. Just be polite, otherwise you go straight on to my Ignore List, which funds a good old fashioned knees-up every Xmas. Cheers;)0
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