Overdraft and mortgage 30 March 2018 at 11:11AM in Mortgages & endowments 5 replies 1K views

lookstraightahead

I have an overdraft facility of £1000 which has generally been overdrawn at the limit every month for years. My debt is cleared now so will be in credit always from now on. Can a credit search show this overdrawn amount for the last six years or are overdrafts not shown on credit files?

Thrugelmir

Depends how old your bank account is. Older accounts are not reported to the CRA's as there was no provision in the terms and conditions agreed to. For overdrafts to be reported.

Jman123

I think your current balance at a point in the month will be reported to credit agencies. For example I use my overdraft almost to the limit each month but on my credit report each month it!!!8217;s a few hundred less suspect it gets reported a week or so before I get paid.. if it!!!8217;s now cleared and has been for at least a month or so I think you!!!8217;ll be ok. I doubt they will report history of it- more likely just report the current position.

MortgageMamma

It will most likely be reported depending upon the age of your account. To check, go to noddle.co.uk and sign up for a free credit report. You can check it for free every month thereafter.


As this is on the mortgage boards I assume you are worried for mortgage purposes. Its important to note that lenders will take this into account, but also that some are more relaxed than others about these things. One of the questions on an underwriters mind would be what if the overdraft facility was withdrawn how would you pay mortgage. So you need to keep a positive bank balance between now and when you apply for a mortgage to keep it looking good in a lenders eyes.

Redscope77

did you ever go overdrawn more than your agreed credit limit? if yes this shows on your credit report as a default/bad marker. If you was always within the £1000 overdrawn limit then it's perfectly fine, it would have only affected your indebtidness index...ie the amount of money you have drawn down vs the amount of credit you could potential have.

All a credit search can see if you are current with all of your credit agreements and the number of credit agreements you have. If you were always current (ie made all payments) then you will have a good credit score.

[Deleted User]

Redscope77 wrote: »

All a credit search can see if you are current with all of your credit agreements and the number of credit agreements you have. If you were always current (ie made all payments) then you will have a good credit score.

Not quite. Lenders will look at the data and make their own decisions.

The fictional credit score is neither here nor there.