Overdraft query

scottmoreno

If I am in my overdraft most months, limit is £500 and i'm under this amount each month ?

Does this affect my credit score ?

Thrugelmir

Why do think it wouldn't?

People are primarily either solvent (savings) or insolvent (debts). Being in debt increases the risk of default should one of the the 3d's strike. Death , divorce or distress (financial).

thebritishbloke

It will probably make lenders look at your negatively, yes. If possible, you should avoid using your overdraft at all.

glentoran99

thebritishbloke wrote: »

It will probably make lenders look at your negatively, yes. If possible, you should avoid using your overdraft at all.

If hes managing it correctly would it not be positive?

JKSandy

"If he's managing it correctly would it not be positive?"

The OP says he is in his OD each month, so if its in the minus on the date it gets reported to the CRA's then it could be seen by lenders that he his financially struggling.

xgingerx

Hi, I have and overdraft and its 2000 and often spend up to the limit throughout the month and I can tell you catagorically its has no worse negative effect than if you used your credit card to the max and paid it off each month. Obviously if the bank reports to credit agency the day when your maxed out then it would show your debt to income ratio to be high which could affect some companys wanting to extend further finance. As with credit cards as long as you stay within your limits it reports positive info on your file.