Bank reducing my overdraft - is this a bad thing?

Trifle_with_custard

Hi Everyone,

I'm after your advice and expertise. I've received a letter from Halifax that says they're reducing my overdraft limit from £450 to £300. I have the Halifax Reward account and I hardly ever go into my overdraft. The last time I went into my overdraft was some months ago, and that was only £1 or £2 at the most. I recently applied, and got accepted, for their credit card and I've only spent about £50 on it. Apart from that I have never been in debt (apart from student loans). So I was wondering if anyone knows why I've been flagged up as needing my overdraft lowered? It's not that I need the overdraft. I am worried that this means they've done a credit check and/or the actual lowering of my overdraft would affect my credit score in a bad way.

Please help, thanks.

meer53

Overdrafts are reviewed periodically and if they're not used banks will often lower or remove them completely.

No credit check will have been done, it would have been an internal decision and your credit file won't be affected in any way. If you have a large amount of available credit it may work to your advantage to have it lowered. It depends on what your income/available credit ratio is.

MABLE

meer53 wrote: »

No credit check will have been done, it would have been an internal decision and your credit file won't be affected in any way. If you have a large amount of available credit it may work to your advantage to have it lowered. It depends on what your income/available credit ratio is.

But it will show the revised overdraft limit on OP's credit file.