Cashplus Account overdraft?

newuser78

Hi

I have a Cashplus account (with CreditBuilder) for nearly a year - I don't use it except to pay £5/month as part of credit building. I recently received a text message from them saying that I have been "approved" for a £100 overdraft.

Should I sign up and accept? Would this help further improve my credit rating? I will never use the overdraft but if it is "there" to make anybody happy, then so be it!

I have no other credit cards nor debts except for a smallish student loan and a standard Natwest Select current account.

Thanks! :beer:

happy_bunny_2

newuser78 wrote: »

Hi

I have a Cashplus account (with CreditBuilder) for nearly a year - I don't use it except to pay £5/month as part of credit building. I recently received a text message from them saying that I have been "approved" for a £100 overdraft.

Should I sign up and accept? Would this help further improve my credit rating? I will never use the overdraft but if it is "there" to make anybody happy, then so be it!

I have no other credit cards nor debts except for a smallish student loan and a standard Natwest Select current account.

Thanks! :beer:

It shows up on my report as a £100 overdraft on a current account. So looks good as no one sees the lenders name when searching your report.

newuser78

Thanks happy_bunny.

Does this mean that in terms of credit rating, a £100 overdraft is better than having no overdraft?

happy_bunny_2

I would say so.

It shows you gave obtained credit and if you don't use it, shows you use it responsibly.

Getting a high interest credit card and using it for food and paying in full is also a good way to build a good credit profile.

newuser78

That's great thanks. On reflection, I might just close this card and get a "proper" card.