Rejected by Barclays due to use of overdraft - Apply for Another?

TimeToBawl

Ok thanks. One last question, is a current account opening likely to improve/reduce/do nothing to the chances of being approved?

PRAISETHESUN

https://www.moneysavingexpert.com/savings/pay-off-debts/

As above, I'd focus on paying off your debts before trying to save in your ISA unless the savings interest rate is higher than your overdraft rate (which is almost certainly not) otherwise you are paying the bank for the privilege of saving your money. The HTB ISA might be a situation where the bonus 25% might be worth dipping into your overdraft to fund, but you'd need to do the maths and find out for sure. Personally I'd focus on building up a buffer to avoid having to dip into overdraft constantly, and then throw any excess cash into savings.

As for your credit file, ignore any reference to your score and focus on building and maintaining positive credit history. Regular overdraft use will signal to lenders that you may be desperate for credit or cannot live within your means and will be less likely to offer you credit. All active credit accounts are reported to the CRAs, so lenders will find out your overdraft use one way or another. I'd also avoid making too many credit applications in a row, as this can also negatively impact your credit history for the following 3-6 months, depending on how many searches you make.

EDIT:
All hard credit searches will be recorded, including applications for current account, credit card, loans, etc. Too many of any will negatively impact your ability to get credit in the short/medium term.

[Deleted User]

TimeToBawl wrote: »

Ok thanks. One last question, is a current account opening likely to improve/reduce/do nothing to the chances of being approved?

Depends on the lenders lending criteria.

TimeToBawl

Ok thanks all