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Student Overdraft - Credit Rating

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Hi,

Did you know a student overdraft affects your credit rating?
I have a £1500 overdraft and have been using it to buy food, travel expenses etc.
Last month it was -£1,100 balance.

If I bring the balance back to 0 every month, will this improve my credit score?
Is it definitely the last day on each month I should do this ... I'm worried that it's another day my bank uses to tell the credit agency?

Comments

  • You don’t have a credit rating or score.

    Try and stay out of it if you can.
  • Permanently living in your overdraft suggests to lenders that you are desperate for money. They are less willing to lend to those kind of people. So yes, get that balance to £0 as soon as you can.

    However, a more pertinent question is 'is it costing me money?'. It you are getting any charges, on it, then that is even more reason to get out of the overdraft asap.
  • Be a little careful, this person has also made another post saying he has 40k saved to buy a house. If so, an overdraft doesn't make enormous sense.
  • onthego
    onthego Posts: 67 Forumite
    Eighth Anniversary 10 Posts Name Dropper Combo Breaker
    It can make sense to borrow free money e.g. Student overdraft, and invest it in a high interest savings account. Unless it affects your credit rating and you are about to need to apply for credit.
  • Look at this guys previous postings.its all fantasy
  • Be a little careful, this person has also made another post saying he has 40k saved to buy a house. If so, an overdraft doesn't make enormous sense.

    Oh, it's that guy. Didn't read the username.
This discussion has been closed.
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