Student Overdraft - Credit Rating 31 October 2018 at 7:49PM edited 30 November -1 at 1:00AM in Credit File & Ratings 6 replies 754 views

JohnLock

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?

[Deleted User]

You don’t have a credit rating or score.

Try and stay out of it if you can.

binaryuniverse

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.

[Deleted User]

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

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.

Whatisinaname

Look at this guys previous postings.its all fantasy

binaryuniverse

deannatrois wrote: »

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.