Changing accounts - should I clear overdraft first?

go4it

I currently have a Natwest Grad account with a 2K overdraft, which I am very close to at the minute.

Sorting out my finances and things should be on the up soon. The Natwest Account is rubbish for anyone in credit, so I have been looking at accounts like Smile.

Is it best to wait till I'm back to zero, then apply for another account. Or can I apply for a new current account now, and gradually phase out my Natwest account - i.e. I will be allocating money each month to pay it off, but would also like to allocate some money to earn a good interest.

Any advice? I know the banks normally ask for 3 months of previous bank statements, I'm wondering that if the see -2K with Natwest they won't bother with me.

inmypocketnottheirs

Banks are used to customers with overdrafts switching accounts. Generally, they will usually match any facility you currently have. Their main concern is not an overdrawn balance, if this is done with authorisation, but more if there excess charges, bounced items, returned payments etc.