Overdraft Cut Down

OneLife_OneShot

I cleared my overdraft at once a few years ago after just saving the money up, a friend of mine is looking to clear hers, she has until March agreed with her bank to clear it before it goes to Arrangement to Pay.

I should really know but what is the best way to clear it to reflect well on her credit report. Can she say ask for the limit to be reduced say £xx per month/week or is it just better to pay it all off at once?

Cheers!

Million_Percent

I don't know for sure but I seem to remember reading once that frequent requests to lower your overdraft limit can negatively impact your credit rating.

She can pay it off without asking for the limit to be reduced though. Get the limit reduced once it's all paid off.

rockm87

I'd pay it off and then lower the limit or cancel it altogether.