Use card/loan credit or overdraft?

pacpac2018

Hi, not taking into consideration the interest rate, in the view of possible lenders when checking the credit file, is it better to use credit related to cards/loans or current account overdraft facilities?

sourcrates

Dosen`t make the slightest difference to the price of fish.

Nebulous2

pacpac2018 wrote: »

Hi, not taking into consideration the interest rate, in the view of possible lenders when checking the credit file, is it better to use credit related to cards/loans or current account overdraft facilities?

Better for what?

They're different products with different purposes.

I dislike overdrafts - they're basically payday loans for people with better credit. Using them regularly is a sign of financial distress in the eyes of some lenders.

Loans are suitable for longer-terms, often to buy expensive items such as cars and kitchens.

Credit cards are the most flexible - with foreign use ones, balance transfer ones, up to 56 days interest-free and 0% purchase ones. Taking special offers and shuffling them has been of benefit to many people. They are also a slippery slope for many people who get sucked in, build up a balance and then cannot pay it in time and end up paying substantial interest.

sourcrates

I think the op was reffering to how the lenders viewed a particular type of borrowing, and to elaborate on my first answer, it won`t even enter their thought processes, banks are there to make money, they are not too bothered how they achive that, they offer financial products, if you are approved for any or all of them, and use them within the terms and conditions of that product, then thats all they care about.