Overdraft or Credit card debt, which is preferable?

shorn

Hi all,

I've been working on clearing my debts, mainly credit cards and I'm getting there. I currently have a mortgage and I'll be looking to move in about 3 years, so working on getting everything clear by then.

I have a £4950 overdraft that I've been almost up to the limit on for years. I want to pay this back, but it might take a while.

I was wondering, in terms of credit rating/scoring. Is it better to have this amount outstanding in my overdraft, or move it to a credit card?

I have read that credit checks cannot see your balance in your account, so wouldn't it be better to have it in the overdraft rather than outstanding debt on a credit card?

Thrugelmir

Convert the overdraft to a personal loan and ask for the overdraft to be removed. Then you've the imposed discipline to repay the debt.

Overdraft balances are reported to the CRA's.

In terms of credit scoring debt is debt. In some form or another it will impact you.