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Cashplus Account overdraft?

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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:

Comments

  • happy_bunny_2
    happy_bunny_2 Posts: 4,488 Forumite
    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.
    :beer:
  • newuser78
    newuser78 Posts: 187 Forumite
    Thanks happy_bunny.

    Does this mean that in terms of credit rating, a £100 overdraft is better than having no overdraft?
  • happy_bunny_2
    happy_bunny_2 Posts: 4,488 Forumite
    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.
    :beer:
  • newuser78
    newuser78 Posts: 187 Forumite
    That's great thanks. On reflection, I might just close this card and get a "proper" card.
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