Pay off interest free overdraft with credit card to improve my credit rating

cmccoll94

Hi,
I have an interest free graduate overdraft with santander?”, with one year left till i need to pay it off. I can afford to pay it off monthly no problem, however i was wondering whether or not it was worth me paying it off with a 0% transfer credit card in the interest of improving my credit rating. Would this be worth it? Would it actually improve my credit rating? Or am i better of paying the overdraft off directly?
Thanks,
Chris

[Deleted User]

You don't have a credit rating. Just a credit history, so every lender's view may be different.

Not carrying debt at all is the generally the best way to appear attractive to lenders - certainly at the mainstream end.

But if you have no urgent need for credit, you might want to keep your money earning interest.

I wouldn't pay a 4% fee to move it to another 0% promo.

Ben8282

Having an overdraft doesn't look good but if you have been able to obtain a 0% credit card with no problem then there can't be much wrong with your ability to obtain credit can there?

System

If your overdraft is interest free then why make a financial loss by transferring to a credit card and incurring a transfer fee?

If you're not applying for a mortgage anytime soon then why worry about how the overdraft might look on your credit file. Get it paid off and then cancel it, no need to faff about moving the debt about if its not costing you

Willing2Learn

Another post to advise you to just pay off the overdraft monthly. You've said you can afford to do it that way. I wouldn't waste money on a transfer fee if there is no need to do so...