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Overdraft

elle_may
elle_may Posts: 414 Forumite
Part of the Furniture 100 Posts Name Dropper Mortgage-free Glee!
in Budgeting & bank accounts
Just had a letter from bank they are reducing my overdraft, after a review, from a high to lower one because i don't use it. Had this for a number of years and never had it reduced before.

Does this have any impact with other lender's or credit agency's or indeed with my own bank. I have very good CC limit's.

Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    With big CC limits reduction in some overdraft limit will hardly make any difference. And, if you don't carry balances on your CCs, the difference, if any, can be positive only.
  • Doctor_Duke
    Doctor_Duke Posts: 303 Forumite
    No this won't be negative because your overall available credit has reduced. Some banks review overdrafts annually. I sometimes use my overdrafts for just a day just to keep it 'active' as I want the emergency facility.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Granting facilities does cost banks money indirectly. Reducing used ones is prudent. Has no impact on you what so ever.
  • badger09
    badger09 Posts: 11,771 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Thrugelmir wrote: »
    Granting facilities does cost banks money indirectly. Reducing used ones is prudent. Has no impact on you what so ever.

    Did you mean unused?
This discussion has been closed.
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