will this help my credit rating cash-plus overdfat

brighthouse77

Hey I am a newbie,

Basically I have had a lot of defaulted accounts which i am paying off bit by bit, to improve my score further i got a cashplus pre paid car loan where you "pay back" £5.95 I have been doing so for about 6 months now, they have just offed me he Cashplus Overdraft is yet another great service available to qualified customers – and you’re already approved for a £100 credit limit!

Your Cashplus Overdraft explained

This Overdraft works just like a bank’s – it’s a re-usable fixed credit limit of £100 attached to your account, that kicks in whenever you run out of money – and you can keep re-using it as you keep paying it back.


£100 Overdraft – guaranteed


0% interest


Flat fee of 75p/day – only when used


Credit limit review within 7 months

Offer expires 9th March 2017
SIGN UP FOR YOUR OVERDRAFT
Visit Online Servicing
What’s more, we’ll review your account within 7 months to see if we can offer you a higher credit limit.

You can use your Overdraft to make purchases, get extra cash and cover any Direct Debits and Standing Orders set up on your account. So it’s ideal for essentials such as groceries and fuel or simply helping to cover your monthly payments such as rent and utility bills.

Setting up your Cashplus Overdraft is easy

You can have your Cashplus Overdraft of £100 in place for an annual fee of just £20. And it’s easy to set up"

Now, I am fully aware the interest is high and i have to pay £20 a year to use, but my question is if i accept the overdraft and use from time to time but keep within its in means, will this have a positive effect on my credit score?

help much appricated

Thank you

[Deleted User]

Ignore your score. It's as meaningful as the colour of unicorn poop.

Have you tried getting a sub prime credit card? Unless your credit history is in the gutter, you shouldn't be looking at paying for cards.

brighthouse77

Deleted_User wrote: »

Ignore your score. It's as meaningful as the colour of unicorn poop.

Have you tried getting a sub prime credit card? Unless your credit history is in the gutter, you shouldn't be looking at paying for cards.

Well I use to get credit very easy, now am never accepted, so i just want to work towards getting my score back to what it was

I dont mean will my score actually go up just will i be more likely to be accepted by others in future

[Deleted User]

Please stop focusing on your score. If you want a high score, then go bankrupt. No one will lend to you, but at least you'll have a lovely high score.

If you want lenders to view you as a better risk, then look at getting a sub prime credit card. Not a pretend one that charges you fees.

Which card providers have you tried ?

brighthouse77

Deleted_User wrote: »

Please stop focusing on your score. If you want a high score, then go bankrupt. No one will lend to you, but at least you'll have a lovely high score.

If you want lenders to view you as a better risk, then look at getting a sub prime credit card. Not a pretend one that charges you fees.

Which card providers have you tried ?

I owe a under 4k so bankrupt not option and i already have a credit card active,

my question is will it be a positive effect or is there chance it will be seen as negative?

[Deleted User]

You need to do five things -

Use your credit card for your standard expenses.
Pay in full each month.
Allow time to build a credit history.
Stop using any cashplus type products that you have to pay for.
Stop focusing on your fictional credit score.

brighthouse77

Deleted_User wrote: »

You need to do five things -

Use your credit card for your standard expenses.
Pay in full each month.
Allow time to build a credit history.
Stop using any cashplus type products that you have to pay for.
Stop focusing on your fictional credit score.

ok thanks will paying off already default account in full help pay,

and if the damage is already done is there any benefit to paying it?

Ben8282

A £20 fee for a £100 overdraft facility.
That's 20% charge already before you have even used the thing.
0% interest ok but 75p a day fee when used is the same as 0.75% interest per-day!
Using the overdraft facility will show only that you are unable to get through the month without going overdrawn.
A 'bad credit 'credit card would be a much better option especially if used and repaid in full every month without using any overdraft.

Ben8282

brighthouse77 wrote: »

ok thanks will paying off already default account in full help pay,

and if the damage is already done is there any benefit to paying it?

The damage is already done. The default will remain on your credit files for 6 years regardless. Paying it will have the marginal benefit of it being shown as settled and keep collectors off your back.

[Deleted User]

brighthouse77 wrote: »

will paying off already default account in full help pay,

Yes.

One option say "this person struggled with payments but then settled the account."

The other says "this person struggled with payments and wandered off into the sunset."

Lenders will look more favourably on one of those people than the other.

brighthouse77

Ben8282 wrote: »

The damage is already done. The default will remain on your credit files for 6 years regardless. Paying it will have the marginal benefit of it being shown as settled and keep collectors off your back.

ok but am in right in thinking it make the current amount owed in total credit score less which would therefore give you a better chance of getting credit?