Accept an overdraft increase...or not?

jar85

Hi everyone,

Always appreciate your support from people far more savvy than I....so thank you in advance.

Trying to improve credit score to secure a new mortgage in the future.

With this in mind:

1) HSBC has offered an overdraft increase on our joint account.
So long as we don't use much of it, (no more so than now)- would the availability of un-used credit be a good thing?

2) We wanted to close this joint account at some point- but would need to extend our overdraft on the wife's account to do this. If we accept the increase on the joint account, is this likely to adversely affect getting this o/d?

Again, value any experiences and comments! Thank you!

DCFC79

You will be wasting your time trying to improve your credit score to secure a new mortgage, your credit score doesn't exist.

jar85

OK so in respect of credit history only- will accepting the overdraft increase affect it?

mwarby

it depends on the utilisation i'd think, if you are often close to limit, then an increase in limit would improve things (as long as you don't increase debt). If you don't use much of it an increase may look bad as more credit you could use(they will consider what if you max out all lines of credit)

Tixy

Assuming you are not talking about a massive increase then its unlikely to make much overall difference to your ability to get accepted for new credit.

In terms of your wife getting accepted for an increased overdraft on her account, that decision will be based on the conduct of the accounts she holds with that bank, as well as information from her credit file, her income etc.