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Will an arranged overdraft affect my credit file?
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Bo*90
Posts: 2 Newbie
Hi all
I'm hoping someone might be able to help. I've recently become serious about sorting out my finances after years of payday loans, buying on finance and living out of an overdraft.
My overdraft is relatively small (£300), but I have been regularly (every month) nearing my limit (and occasionally going over! :eek: ). I'm sorting my spending and am now on a budget, and I'm looking to improve on my credit file, which at the grand old age of 26 is not looking hugely attractive.
My question is this;
Would closing down the OD altogether negatively affect my credit file? Or would the better option be to keep this open but not use it? I understand that not having credit at all can negatively affect the way lenders see you, so I'm a little confused as to what would be the best course of action. I don't want to make an already bad history worse.
Ta in advance!
I'm hoping someone might be able to help. I've recently become serious about sorting out my finances after years of payday loans, buying on finance and living out of an overdraft.
My overdraft is relatively small (£300), but I have been regularly (every month) nearing my limit (and occasionally going over! :eek: ). I'm sorting my spending and am now on a budget, and I'm looking to improve on my credit file, which at the grand old age of 26 is not looking hugely attractive.
My question is this;
Would closing down the OD altogether negatively affect my credit file? Or would the better option be to keep this open but not use it? I understand that not having credit at all can negatively affect the way lenders see you, so I'm a little confused as to what would be the best course of action. I don't want to make an already bad history worse.
Ta in advance!
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