Overdraft or Credit Card?

KyleCarey

Hi All

First post, so ignore me if this has been asked a thousand times but if you can point me in the right direction that would be great!

Christmas has now gone and what an expensive month that was!

I know by the end of the month I will be running short, only by £100-£150 but what I would like to know is, is it better for my credit rating to go into my arranged overdraft (Which is £150) or use my credit card (Limit of £200) ... It doesn't matter about the interest as I will pay it off in full within a week of going into the overdraft or CC.

I never really use my overdraft or CC hence why I am asking.

Any info would be brilliant.

Thanks

K

YorkshireBoy

Use the credit card...there won't be any interest charged (provided you're not drawing cash). If you do need cash use the overdraft facility.


For the sum, and duration, involved the impact on your "credit rating" will be negligible (if any at all).

JimmyTheWig

If you use the credit card and pay off in full once you receive the statement and before the due date then this will actually be seen as a positive in terms of your credit report.

Whatever happens, once you get your credit card statement make sure you pay at least the minimum payment by the due date.

KyleCarey

JimmyTheWig wrote: »

If you use the credit card and pay off in full once you receive the statement and before the due date then this will actually be seen as a positive in terms of your credit report.

Whatever happens, once you get your credit card statement make sure you pay at least the minimum payment by the due date.

I have always paid my CC off after around a week or so from using it ... is it better to keep the balance on the card until the end of the month and then repay it or does it not matter?

glentoran99

KyleCarey wrote: »

I have always paid my CC off after around a week or so from using it ... is it better to keep the balance on the card until the end of the month and then repay it or does it not matter?

Yes its better to leave it until you get the statement

Mummyto4kids

if you wait til you get the statement then that looks better because otherwise it looks like you don't use the card that much

Superscrooge

KyleCarey wrote: »

I have always paid my CC off after around a week or so from using it ... is it better to keep the balance on the card until the end of the month and then repay it or does it not matter?

If you always pay the balance in full after a week. I suggest setting up a direct debit to pay the full amount each month.

You will then be making more use of the interest free period and avoid any risk of missed payments or having to make interest payments.

charger1008

I have just been refused a career loan from Barclays (i bank with natwest) due to my credit scoring. I only ever got one loan out (student loan) which when i can i pay off (as the legal terms state above 21k etc) I currently live in my overdraft and don't earn enough to live off, pay rent and pay off overdraft. Banks suggest a loan? but then thats more to pay off eventually plus it won't immediately help with the fact i can't study now. I need some guidance or advice (aside from bank advice) into how i can get out of this situation to improve my credit scoring and bring myself back up to date.

Sorry i realise this is not a new thread so sorry for changing subject but really appreciate any advice at this moment. feel a bit stuck!

littlej0hn

Charger1008 . make a new thread because your post will get lost in here. I'm sure there are plenty of users on here with good advice.