Increase overdraft limit to further improve credit rating

jpaul1

Hi,

I currently have a 'planned overdraft limit' on my Lloyd’s debit account in the amount of £300.

I don't remember asking for this and as far I remember it was automatically set up with my current account when I first opened it a number of years ago.

I am in the process of trying to further improve my credit rating which is currently has a "good" rating with creditexpert.

I have never needed to use my overdraft and the £300 figure has never changed. I have a steady income I have never had a late payment.

I was hoping to get my overdraft limit increased. My question is, can I get the limit increased, even if I have never used it? I want an increase to effect my credit rating in a positive way.

Is this possible and what approach should I take with the bank?

Thanks.

Whiner

jpaul1 wrote: »

Is this possible and what approach should I take with the bank?

The approach should go something like this.

You pick up the telephone and dial the bank.

Conversation starts.

You: Hello there, I'd like to increase my overdraft please.

Them: Certainly, sir/Madam. May I enquire as to how much you would like to increase your overdraft to?

You: Yes, I'd like £xxxx to be available please.

Them: Thats fine. I've done that for you now. Have a nice day. Goodbye.

You: Thanks! Goodbye!


At least I'd guess thats how a telephone conversation would go, anyway!

ReformedShopper

You should just apply. Probably easier online than via the phone, where there might be pesky questions. Did the same last year with my bank. Asked for an overdraft, which I've never used or gone into, just to improve my credit rating.

I did mine via a mobile app, and I was genuinely surprised at how little time it took - about 3 to 5 mins to be accepted, with a formal confirmation of my overdraft facility sent by post a couple of days later.

Hope your application goes well.:)

JKSandy

Why do you want your OD limit increased? It will do nothing to improve your credit score, one of the reasons being there is no such thing as a universal credit score.

Tixy

An increase in an unused overdraft will be unlikely to have a positive effect on your ability to get credit.
It could potentially have a negative effect on your ability to get credit (or on how much additional credit you may be accepted for).

ReformedShopper

In terms of improving your credit rating, unless you're prepared not to apply for a mortgage in the next 10 months, it might count as a negative factor under the count of "revolving credit", but I'm no expert. On the other hand, it could also count as a positive factor, if you have no other credit cards, the extended overdraft could represent a green tick for the fact that your lender is even prepared to lend you more credit facilities

jpaul1

Whiner, I didn't ask for sarcstic responses. But thank you for wasting your time with your worthless response

Thanks ReformedShopper, JKSandy and Tixy for your opinions, much appreciated.

jpaul1

ReformedShopper, I am planning to apply for a mortgage soon so what you say about the revolving credit being seen as negative factor is something I will consider. Maybe leaving the overdraft limit as it is and instead using my credit card wisely like I have is a better way to improve my credit rating/ report.

Thrugelmir

jpaul1 wrote: »

ReformedShopper, I am planning to apply for a mortgage soon so what you say about the revolving credit being seen as negative factor is something I will consider. Maybe leaving the overdraft limit as it is and instead using my credit card wisely like I have is a better way to improve my credit rating/ report.

For a mortgage application focus on saving and where you save.

Being in debt has no positive impact what so ever.

jpaul1

Thrugelmir wrote: »

For a mortgage application focus on saving and where you save.

Being in debt has no positive impact what so ever.

Hi Thrugelmir,

Thanks for your response,

Working on the saving, but where I save? Where in particular should I be saving?

Definitely agree about being in debt having no positive effect, I was thinking on the lines of have a large overdraft limit and not using so it looks good to lenders.

Thanks.

thebritishbloke

jpaul1 wrote: »

Hi Thrugelmir,

Thanks for your response,

Working on the saving, but where I save? Where in particular should I be saving?

Definitely agree about being in debt having no positive effect, I was thinking on the lines of have a large overdraft limit and not using so it looks good to lenders.

Thanks.

Open up two TSB Current Plus accounts and save £2,000 in each. They pay 5% interest on the first £2,000 in the account (you can open a max of two).

After that, Nationwide offer a "Save to buy" savings account, which offers 2% interest up to £20,000. That or an ISA when the £15,000 allowance comes in in July is your best bet.