Overdraft killing my credit score?

Superscrooge

takman wrote: »

So what is the point in having it there if you will never need to use it?.

It may be having an impact on your other financial products without you knowing about it. What kind of limits do you have on your credit cards?, how do you know they arnt lower than they otherwise would be?.

I guess it's like insurance. I don't expect my house to burn down. But I have Buildings insurance just in case! Likewise I don't anticipate having to use my £5K overdraft facility. But the bank offered it to me free of charge, So it is there should I ever need it.

I must admit I'd never considered whether it would affect other credit applications. It doesn't appear to have done? Although I have no way of knowing whether I could have got higher credit limits without the overdraft facility? .

pvt

takman wrote: »

Why would you want to do that when you can get cashback on a credit card purchase and also get up to 45 days earning interest on the money till you need to pay it (or even more interest free if you have the right credit csrd).

Well one reason would be if I'm buying something from somewhere that either doesn't accept credit cards, or that makes a significant charge for using one.

takman

pvt wrote: »

Well one reason would be if I'm buying something from somewhere that either doesn't accept credit cards, or that makes a significant charge for using one.

But with mobile banking money can be transferred between accounts within minutes from a mobile phone so there is no need to use an overdraft at all. Your going to have to transfer the money by the end of the day anyway to avoid charges so you might aswell do it before the purchase.