We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Need Help - arranged overdraft and credit checks

ExpertLounger
Posts: 2 Newbie

Hello all,
I will be entering a tenancy agreement soon. I have an arranged overdraft limit of £1000 with my lloyds bank debit card and I am overdrawn by nearly £120. My letting agent will conduct referencing and credit checks soon and I wont be paid till the end of the month. My question is does this affect my referencing and credit checks or does it show that I am overdrawn?
All the best
I will be entering a tenancy agreement soon. I have an arranged overdraft limit of £1000 with my lloyds bank debit card and I am overdrawn by nearly £120. My letting agent will conduct referencing and credit checks soon and I wont be paid till the end of the month. My question is does this affect my referencing and credit checks or does it show that I am overdrawn?
All the best
0
Comments
-
The reference checks will not show your bank balance. Even if it did, you would have no issues being within an agreed overdraft limit.1
-
I'm not sure that's entirely true?
£1000 overdraft is quite high, so lenders might look at that more closely.
I would maybe think about getting the overdraft reduced (or removed completely) so it doesn't look like you're reliant on it month to month. Someone with more knowledge will be along soon to point me right though0 -
sleepyjones said:I'm not sure that's entirely true?
£1000 overdraft is quite high, so lenders might look at that more closely.
I would maybe think about getting the overdraft reduced (or removed completely) so it doesn't look like you're reliant on it month to month. Someone with more knowledge will be along soon to point me right though
They're also not being checked by a lender.2 -
From a credit file perspective, it'll show as available credit, irrelevant of if you use it and if you're already £120 into your overdraft then it shows a dependency on using credit. It probably doesn't matter for a Tenancy agreement but for credit applications, it might.
I thought £1000 was a lot for an overdraft?
Seems like a lot.0 -
My available overdraft balance doesn't show on any of my credit files, my Bank just reports it as a big fat zero every month.
Other Banks may report differently.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
It maybe shows as 0 because you're not using it?
If you're £120 into your overdraft then it will presumably show it and the "limit" you have and your available credit will update to reflect that? (I'm just guessing, I've no idea)0 -
UPDATE- ----
As MEM62 said:The reference checks will not show your bank balance. Even if it did, you would have no issues being within an agreed overdraft limit.
0 -
The way it usually works is the credit report only shows a negative amount on your bank balance. If you've got £10,000 sitting in your account, it shows as zero on your credit report. If you've overdrawn by £100, you'll see -£100 on the report. Which kind of makes sense - by its very nature, a credit report is only interested in what credit you're using, it doesn't care about savings.Whether use of an overdraft would concern a lender - or a landlord - is a different matter. It seems that in this case they weren't overly concerned by it. Possibly because it's quite a low amount, possible because they can see it's not a regular occurrence (?), possibly something else. Whatever, they will have seen it but they're obviously not unduly worried by it.Just like applying for a loan, or mortgage, or credit card, every lender/landlord will have their own individual criteria - though in my experience, a letting agent will have less stringent criteria than, say, a mortgage lender.0
-
Ebe_Scrooge said:The way it usually works is the credit report only shows a negative amount on your bank balance. If you've got £10,000 sitting in your account, it shows as zero on your credit report. If you've overdrawn by £100, you'll see -£100 on the report. Which kind of makes sense - by its very nature, a credit report is only interested in what credit you're using, it doesn't care about savings.Whether use of an overdraft would concern a lender - or a landlord - is a different matter. It seems that in this case they weren't overly concerned by it. Possibly because it's quite a low amount, possible because they can see it's not a regular occurrence (?), possibly something else. Whatever, they will have seen it but they're obviously not unduly worried by it.Just like applying for a loan, or mortgage, or credit card, every lender/landlord will have their own individual criteria - though in my experience, a letting agent will have less stringent criteria than, say, a mortgage lender.3
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 349.9K Banking & Borrowing
- 252.6K Reduce Debt & Boost Income
- 453K Spending & Discounts
- 242.8K Work, Benefits & Business
- 619.7K Mortgages, Homes & Bills
- 176.4K Life & Family
- 255.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 15.1K Coronavirus Support Boards