Credit score and overdraft

Eleanornewry

Hi all,

I recently swapped my student current account with a £600 overdraft limit for a reward current account with no overdraft. This was intentional as I no longer wanted to use the overdraft facility.

My credit report refreshed today, and even though it does not yet show the overdraft change, my score has dropped by 14 points. Could this be due to the fact that I no longer have access to an overdraft? If so, should I apply for one to help my credit score?

I really want to clean up my credit score but don't want to do more damage than good in the long run.

Chrism899

It's more than likely because you've opened a new account. Any new accounts drop the score of your credit score until they've been open for at least 6 months. I wouldn't worry about a drop of 14 points tbh

Eleanornewry

Chrism899 wrote: »

It's more than likely because you've opened a new account. Any new accounts drop the score of your credit score until they've been open for at least 6 months. I wouldn't worry about a drop of 14 points tbh

Thank you for your thoughts. Would this be the case even though my account is technically still the same account, i.e. account number and so on have remained the same, but the account type has changed?

[Deleted User]

Don't worry about any change in your credit score. It has no meaning and will react negatively to any change in your files.

Just manage your accounts in a way that look responsible to lenders.

Chrism899

Eleanornewry wrote: »

Thank you for your thoughts. Would this be the case even though my account is technically still the same account, i.e. account number and so on have remained the same, but the account type has changed?

No idea, I'm just going off what happened to my credit score when I opened new accounts, I presume it must have something to do with that but I wouldn't bother getting a new overdraft just because of a 14 point decrease. By next month it will have gone up again anyway.

Eleanornewry

Chrism899 wrote: »

No idea, I'm just going off what happened to my credit score when I opened new accounts, I presume it must have something to do with that but I wouldn't bother getting a new overdraft just because of a 14 point decrease. By next month it will have gone up again anyway.

Yeah I have heard about this, didn't think it would affect me though since technically it's not a new account. Who knows! Thank you