Finally at the top

RickB89

Hi All,

New on here and thought i might as well post as i have used this site and been scanning the forum for many years now and it has helped me more than i could imagine. When i was 17 i left school/6th form and got a job the day after i left. well payed at the time i then got credit cards and store cards etc. I got into nearly £18000 into debt with nothing to show. I got made redundant when I was 19 and I had to figure out how I was going to sort myself out. I was in and out of work doing temping, odd jobs etc so i was out of work for about 1 months overall for 3/4 years. I then got a job for a small electrical company in north london. I'm now 26 and finally out of debt with hard work and no help and my credit rating is very high and ive now got at least £4000 in savings and also go a virgin stake pension set up with at least 1500 in there with 100 going in every month.

My question now is my bank has just given me a £1000 overdraft (without asking) which i'm never going to use but is it good or bad to have that for my credit rating even if its never going to be used ?

MallyGirl

Well done on getting yourself sorted.

there isn't a simple answer to your question

on the plus side it shows that someone is happy to offer you £1k credit
on the negative it shows £1k available credit that would be taken into account if you were to apply for more - say a 0% card

RickB89

thank you, I will have a think and see how it effects my rating at the start of next month and if it goes down I will ask them to lower it to about £300 or remove it completely and get a 0% card to help build the score.

dirtycredit

Well done you've done really well!

sourcrates

Here we are again, credit scores !!!


Credit scores are totally meaningless dibble, its a number invented by the credit reference agency, no one ever sees it but you.


Creditors don't see it, potential lenders don't see it, no one sees it.


Take no notice of these fictitious numbers, all you have to concentrate on is paying bills on time, don't go overdrawn, don't be a late payer, get on the electoral role, don't get any defaults.


The rest, as they say, will take care of itself !!

lisa110rry

Well done you, OP! What an achievement.

I know what you mean about banks trying to shove loans/overdrafts/credit card limits down one's throat without even asking. Makes me quite cross! (No thank you, I don't want my credit card limit raised from £11.5k to £13.5k Natwest! Have you not noticed I only use occasionally and always for online purchases?)

alexadams88

that's fantastic way to start, keep going on you are still long way to go but I believe you will do it. Good luck.

ReadingTim

You only need a credit rating if you're looking to get credit - but what do you think an overdraft is?!? Yes - credit! So, if you need a bit of credit, then you've got a grand available. Personally, I'd leave it where it is - budget so that you never use it, but it's a handy buffer zone vs the potential of a rejected payment.

Furthermore, £1,000 o/d potential isn't likely to cause problems in getting a credit card, unless you were looking for a limit of more than 40-50% of your salary.

I'd chill out - the fact that your bank is offering you an overdraft shows that they're willing to trust you and treat you like a normal, credit-worthy adult.

asparagus1968

well done on getting yourself sorted so young!
why would you want a credit card? you are debt free, don't use your OD ,have no debts. If I were you, I'd get the limit lowered, never use it, make sure all your bills get paid on time, save like mad.
you will be fine