Overdraft removal

Phoenix407

I have a solid credit rating, no missed payments on anything for 6+ years and only 1 credit application in the past 12 months. However, Barclays sent me a message last week saying they’re going to remove my overdraft facility. It’s £1500, had it around 4 years but never used it. I suspect this may be the reason they’re going to remove it. 

The question is, will them removing it have any detrimental effect on my credit file / score, as it will technically reduce my overall credit limit? If so, do I deliberately withdraw all funds to put myself into overdraft to show I’m using it or let them remove it?

TIA

TadleyBaggie

Being (persistently) in an overdraft is a bad thing to have on your credit history, so not using or not having one is good thing. Ignore the score, it's a made up thing that no one else can see.

Thrugelmir

Phoenix407 said:

The question is, will them removing it have any detrimental effect on my credit file / score, as it will technically reduce my overall credit limit? 

TIA

None at all. As an used overdraft isn't reported. Nor do you have a "credit limit" whatever you may think that to be. . 

Daliah

Phoenix407 said:

The question is, will them removing it have any detrimental effect on my credit file / score, as it will technically reduce my overall credit limit?

It will have no negative impact. Your current account will still be a "credit account", and the way you manage it will be looked at by any potential lender.

Phoenix407 said:

 If so, do I deliberately withdraw all funds to put myself into overdraft to show I’m using it or let them remove it?

That would not be a good move.


If you feel you should have further credit facilities showing on your credit files, take out a credit card. 

stclair

My overdraft shows on my clear score and credit karma reports on credit karrma is shows you a graph of usage and the limit.

[Deleted User]

Thrugelmir said:

Phoenix407 said:

The question is, will them removing it have any detrimental effect on my credit file / score, as it will technically reduce my overall credit limit? 

TIA

None at all. As an used overdraft isn't reported. Nor do you have a "credit limit" whatever you may think that to be. . 

Unless you have a very old account - the overdraft limit and usage is reported to the CRAs.