Overdraft

jimbobz

Good Morning all

Hopefully I am in the right part of the forum.

I have an odd situation where I have just taken out a loan and the first collection falls a day before my payday.

I contacted them and asked to push it a day forward and they said "We are not able to delay the payment for any period, even for one day, as this will increase the amount of interest you pay over the term as well as possibly affecting your credit rating, however we can bring this forward to be paid before the set date."

Not really feasible for me so I have extended my overdraft to take the hit a day before (this will cost me 50p a pop)

I can deal with the 50p charge but the worry I have is that if I go in and out of my overdraft even for just a day a month will this mess with my credit rating ? plan is to get into position where I can pay them a month in advance eventually - "Alternatively, you can make additional payments to your loan, bringing the balance into credit sufficient to cover one month’s direct debit. If you do not wish to make one full payment for this, you can make smaller payments to the Loan account and once this has amounted to the full direct debit of £*****, we can then change the date for you.
You can make the payments to the Loan from your ******account by:"

Many thanks in advance

glentoran99

It probably wont even be reported to the CRA's that you have been in your overdraft, as it will only be reported once a month and any negative balance at that point.


What is your statement date?

DCFC79

Id entered my overdraft for at least 1 day and I cant see a mention of it on my Noddle or Clearscore report, maybe the banks only report after a min number of days.

In fact I believe id entered it twice and the first time was 10+ days before I was charged the overdraft fee but both incursions weren't reported.

glentoran99

As far as I can see they report my statement balance at the time its produced

jimbobz

Many thanks to all

DCFC79

Maybe ask the bank of it will leave a mark on your credit file (not your score), your credit file is what lenders can see (they don't see the score)

rtho782

It worries me more that your plan is to hit the OD every month rather than keeping the money aside for the payment....

Are your finances that stretched that you can't find one extra loan payment over the course of a month or two? If so, you could have bigger issues coming up....

foxy-stoat

jimbobz wrote: »

I can deal with the 50p charge but the worry I have is that if I go in and out of my overdraft even for just a day a month will this mess with my credit rating ?

I wouldnt worry, your credit rating is marketing BS that lenders dont see.

Have you spent all the money from the loan already? you could of held a month's payment back if you havent.