Forum Home» Credit Cards

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

New Post Advanced Search
Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.

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

edited 30 November -1 at 12:00AM in Credit Cards
4 replies 851 views
cmccoll94cmccoll94 Forumite
1 posts
edited 30 November -1 at 12:00AM in Credit Cards
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?


  • zx81zx81 Forumite
    30K posts
    Tenth Anniversary 10,000 Posts Photogenic Name Dropper
    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.
  • Ben8282Ben8282
    4.8K posts
    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?
  • SystemSystem
    177.8K posts
    10,000 Posts Name Dropper
    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
  • Willing2LearnWilling2Learn Forumite
    6.3K posts
    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
    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...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support