Overdraft reduction

Squirrel29

I have an overdraft facility of £1100 with Nationwide. Since my LBM in Sep 07 I have managed to reduce this down through careful budgeting to £880 OD as it stands today (payday tomorrow when £1600 will be going in)

I intend to keep bringing it down as part of my overall debt reduction. BTW, I haven't exceeded my overdraft or received any charges other than interest for at least 3 years so I am hoping there should be no problems when they do the 6 monthly review next week.

I asked Nationwide tonight if a reduction in my facility, say down to £1000 would leave a footprint on my credit file. They confirmed this is the case, I am loathe now to reduce my OD facility as I have had three searches on my credit files since August through changing to lower interest rate CC's and am worried that if they perform another search they will decide there have been too many recently and completely withdraw my facility. Could this happen? Am I best keeping the £1100 limit on there until I have managed to pay a few hundred pound more off?

I was just a bit surprised that a voluntary reduction would result in Experian search. I know I am determined enough not to creep back up to £1100 but really wanted to see my limit reduced as reward for being careful.

HBFS

Having an overdraft is one of the ways of improving your credit rating if you don't have one. Getting rid of it is much the reverse, because it shows that you can spend and pay back all at once.