Overdraft to keep or not to keep?

Callumrayb

Hello, so if anyone remembers my old thread tldr I was worried about my credit history and how to build it. I have figured out and struggled my way through the hoops to build a positive credit history and today I finally got an overdraft on my bank account. I have held an aqua card for a month with a £300 limit, only used £40 of it and when the statement came through I immediately paid it.

My bank offered me an overdraft today and I got accepted for up to £1500 guaranteed. I was wondering if I should keep it (for emergencies) or should I maybe lower it to something like £200? I'm not sure how overdrafts affect my credit file so any help would be appreciated. Thanks!

jay1804

Keep it, and don’t lower it.

Ben8282

Keep it. Don't lower it. Most importantly don't use it.

boo_star

I'd get rid of it.

It won't be reported unless you use it, and as Ben8282 says, don't use it, so why even have it?

jefaz07

boo_star wrote: »

I'd get rid of it.

It won't be reported unless you use it, and as Ben8282 says, don't use it, so why even have it?

Mine is reported. And I haven’t ever used it.

boo_star

jefaz07 wrote: »

Mine is reported. And I haven’t ever used it.

Really?

It's usually only overdrawn balances that are reported.

nick74

boo_star wrote: »

Really?

It's usually only overdrawn balances that are reported.

Positive balances aren't reported, but the amount of the available overdraft facility is.

Callumrayb

Thanks for the replies. I think I will keep it as a last resort emergency fund.

Ben8282

boo_star wrote: »

I'd get rid of it.

It won't be reported unless you use it, and as Ben8282 says, don't use it, so why even have it?

Mine is reported also. The amount of the facility is shown but as unused balance is always 0.

Socajam

I have a £3500 overdraft from NatWest for years now and have never used it.
It's sitting there just in case

gionnetto

boo_star wrote: »

Really?

It's usually only overdrawn balances that are reported.

Halifax reports the overdraft and how much you have available, not just the outstanding part.