Overdrafts, Limits & Credit Rating

ABBF08291

Does closing an overdraft facility have a negative impact on your credit rating? I am looking to close 1 of my 2 overdrafts but wanted to know if this has any impact to my short term credit rating (applying for remortgage soon)

My primary bank HSBC (where I'm paid) has no overdraft.

I then have two other bank accounts which I use sparingly. Both have overdraft facilities - Halifax has an overdraft limit of £1,500 and Natwest a limit of £1,000. Currently both accounts are £100 in credit. I use these accounts to store excess short term money, but sometimes I also use them as short term cash borrowing facilities.

I also have a Natwest credit card (used rarley - £6500 limit, zero balance) and a Barclaycard (£14,000 limit for which I use almost every day for purchases).

I want to close one of the OD because it can be tempting to have liquid cash available, however I am soon applying for a mortgage so wondered whether this has a short term negative impact on my credit rating?
If not and its fine, which one should I close? Natwest has lower limit so would like to close that, however I have multiple products with Natwest (saving account and CC) so would they see this negatively also?

Many thanks for your help all.

[Deleted User]

You don't have a credit rating - just a file.

Lenders would generally see overdrafts as a sign that your bank trusts you with credit, but would be concerned if you spend too much time in it.

I would keep them but stay out of them.

Ben8282

I agree with zx81. An unused overdraft facility looks very good on your credit files. It both shows that you maintain your account in credit at all times and gives lenders the added confidence that payments will be met.
I would cease to use the overdraft facilities but otherwise leave well alone although personally I would prefer the overdraft facility to be on my main current account..