Would a Current Account with an arranged overdraft facility go on to your credit file

Toby101

Thank you to all contributors. Toby x

jazzyja

Sorry to jump on this, I'm trying to avoid using my OD because I want to apply for a mortgage next year. Thing I dont understand is they're not happy with you dibbing into OD and paying it back within the month but more than happy for you to use a credit card.....baffles me. Surely having to use a CC every month is also spending above your means? Usually id of used my OD and paid it back but I've changed the way I do things now! 

dr_adidas01

jazzyja said:

Sorry to jump on this, I'm trying to avoid using my OD because I want to apply for a mortgage next year. Thing I dont understand is they're not happy with you dibbing into OD and paying it back within the month but more than happy for you to use a credit card.....baffles me. Surely having to use a CC every month is also spending above your means? Usually id of used my OD and paid it back but I've changed the way I do things now! 

Not really I use my Credit cards for everyday purchases and then pay it in full after my statement is produced. 

I guess if your using it and only pay the minimum payment then lenders may view it as living beyond your means. 

Fighter1986

An overdraft is there to use if you run out of money.

A credit card is a purchasing tool.

Paying by credit card and clearing it in full each month shows you can afford what you're buying.

Regularly going overdrawn shows you regularly run out of money.