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To close or not to close?
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
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
0
Comments
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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.0 -
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.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)I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
1 -
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?🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
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.
Thanks0 -
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.0
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