Will repaying my 0% interest overdraft have a positive effect on my credit score?

ryan_crs

I'm a little confused whether this is the case - I've read online that not using savings to pay off debt that is of little financial consequence is better than repaying it for the sake of doing so. I have a low credit score, but I've worked my tootsies off to try and get a decent amount of savings behind me but my credit score isn't improving and I'm at a loss. For ages I've ignored the overdraft because it doesn't accrue interest and I intend to repay it, obviously, but when I have to. But, if it will have a positive effect on my credit score, I'll work to pay it off in the shorter term. I currently make small direct debit contributions to the overdraft to stop it from becoming dormant (and activating a need to repay it immediately).

Thanks for any advice!

[Deleted User]

It'll probably lower your score as it's a change, but lenders will view you more positively as living in your overdraft is a sign of higher risk.

Remember that only you see the score, so you can have it as low as you want.

Mandaloiian

I’ve had the same issue in the past and found that clearing it has helped it just looks better to those offering credit.