To close or not to close?

TomTek

Hi guys
After the recent joke of a sting about the overdraft interest rates doubling. I have had to do something about my 1.5k overdraft on my old current account.

I've balance transferred to clear it (on a 0% deal) so i am now at 0.

Do i :

- Do a full switch to my other current and be done with it (what I want to do)
- Cancel the overdraft and keep the account (I have never defaulted on my OD and always paid the fees/interest so does that count positive on my credit score?)
- Keep the overdraft on the account but at 0 (I guess that means can use it if I REALLY need to)

Thanks in advance for your advice.
Tom

[Deleted User]

Keep the OD but stay out of it.

Being overdrawn is a sign of risk for lenders. It certainly won't have done you any favours by appearing on your credit files.

Willing2Learn

TomTek wrote: »

Do i :

- Do a full switch to my other current and be done with it (what I want to do)
- Cancel the overdraft and keep the account (I have never defaulted on my OD and always paid the fees/interest so does that count positive on my credit score?)
- Keep the overdraft on the account but at 0 (I guess that means can use it if I REALLY need to)

If it were me I would keep the overdraft facility. However, I would NEVER dip in to the overdraft, as I would have an EF saved up for emergency expenses instead.

EssexHebridean

TomTek wrote: »

Hi guys
After the recent joke of a sting about the overdraft interest rates doubling. I have had to do something about my 1.5k overdraft on my old current account.

I've balance transferred to clear it (on a 0% deal) so i am now at 0.

Do i :

- Do a full switch to my other current and be done with it (what I want to do)
- Cancel the overdraft and keep the account (I have never defaulted on my OD and always paid the fees/interest so does that count positive on my credit score?)
- Keep the overdraft on the account but at 0 (I guess that means can use it if I REALLY need to)

Thanks in advance for your advice.
Tom

If the bit highlighted is your ideal - what is stopping you from just doing that now that the other account is at zero?

TomTek

If the bit highlighted is your ideal - what is stopping you from just doing that now that the other account is at zero?

Because I don't want to close the account and overdraft (which full switch requires you to do) if I will lose any positives on my credit score from paying interest/having the overdraft etc.

Thanks

[Deleted User]

Even if your credit score was a real thing, paying interest would in no way improve it.

However, having it available demonstrates that lenders trust you to an extent.