Credit Score

reecos

Hello All

I am almost debt free!

I will soon be in a position to pay off my overdraft, leaving me with just a few other bits to pay. Will my credit score look healthier if I retain the overdraft facility so that I have unused credit or would it be best to close the account down.

I am disciplined enough not to use the overdraft again.

TIA

[Deleted User]

Your credit score doesn't matter. Just your credit files.

Keeping, but not using, an overdraft shows that you are trusted but not reliant on credit.

T-G-C

The above advice is correct. You do not need to use it for general spending, but unexpected costs can be covered under the overdraft, provided it is repaid once the funds are available.

Keep using it like that and both the bank and other creditors will view it in a positive manner. It is people who obtain an overdraft and remain in it indefinitely who are viewed worse.