Overdraft

ShaunW50

Hey everyone,

I have just a quick question that I would like to ask.

I'm planning to borrow £50 planned overdraft tomorrow from Halifax, but I'll be paying it fully off next week. Just a short emergency.

What affect will this have on my credit report?

YorkshireBoy

Somewhere between nothing (it may not even be reported) and pretty dire (such a small amount shows you're living from hand to mouth and don't have any emergency savings), depending on many other factors.

For such a small amount, and for such a short period, can you not borrow from family or a close friend/work colleague?

ShaunW50

Unfortunately not.

My credit report is completely clean, no missed payments ever etc etc.

Just worried this amount will affect it or not?

[Deleted User]

See post 2.

It depends how a lender chooses to view it.

As a one off, it shouldn't be the end of the world.

Ben8282

ShaunW50 wrote: »

Unfortunately not.

My credit report is completely clean, no missed payments ever etc etc.

Just worried this amount will affect it or not?

In this case I would say don't worry about it at all.
The overdraft use may not even be reported. Halifax will report any debit balance on the account on the day of the month that they report. If the overdraft is repaid by this date, then the use of the overdraft will never be reported. If the account is overdrawn on this day, the actual negative balance will be reported.
In itself, the one off use of £50 of your overdraft should not have any adverse effect whatsoever on your future ability to obtain credit. Lenders will base their decision on your credit report as a whole. The problems occur when a person is overdrawn month after month.

jonnygee2

Overdrafts are designed as short term credit products, so you are using your overdraft appropriately and responsibly.

There's a reasonable expectation that you may well be a user of credit when you apply for any sort of credit! It's more about how responsible you are at using what's given to you, and how affordable any new credit might be.

At the end of the day, there would be no point having a credit file at all if you were never willing to use the credit available to you.

JuicyJesus

I very much doubt that any lender will give all that much of a toss about you borrowing £50 off Halifax for a week, if it even gets reported to a credit reference agency.

ShaunW50

Thank you for all the responses!

I'm paying it off fully this Sunday, so hopefully the record date that Halifax records the balance to credit companies is after this.

DCFC79

Do you hve a credit card ?
Im guessing you dont, it wont help the current situation but consider getting one as its useful especially a situation like this.

For a weeks use I dont think there will be an issue with your report.

pinkdalek

Why are people so hung up about their credit report?

I can't recall at any funerals when listening to an eulogy that the recently departed credit score was ever brought up.

All I'm saying is use it wisely, overdrafts are short term borrowing eg before pay day so in your case I don't see why the worry. Live in it all month on end then yep a different story.