Impact of using overdraft on Credit File?

Surfeit75

I have a small arranged overdraft (£250) with my bank and am just wondering about the impact of using it and what that means for my Credit File?

Is it ok to go into my overdraft for a small amount for a little period of time, to have a positive impact? Or should it ideally not be touched at all?

[Deleted User]

Best to stay out of it if you don't need it. It may not always be interpreted negatively, but it'll never be viewed as a positive.

Andybez38

Deleted_User wrote: »

Best to stay out of it if you don't need it. It may not always be interpreted negatively, but it'll never be viewed as a positive.

How can you say "it will never be viewed as a positive" ? A lender might view this as a way of making money from someone.
I don't know however what impact this has on your credit rating.

Bluebirdman_of_Alcathays

Andybez38 wrote: »

How can you say "it will never be viewed as a positive" ? A lender might view this as a way of making money from someone.
I don't know however what impact this has on your credit rating.

I agree with your first point (unless of course zx81 is the Omniscient Lender).

As for your second - what exactly is a credit rating?

Thrugelmir

Surfeit75 wrote: »

Is it ok to go into my overdraft for a small amount for a little period of time, to have a positive impact?

All this shows is that you have no savings and therefore resort to borrowing to fund your lifestyle.

wileycat

I use my overdraft when I'm in normal mode, i.e. only applying for normal kinds of credit, credit cards, car finance etc. But when trying to max the perception in a period leading to a mortgage I keep it out the overdraft - even though mine is interest free.