Cahoot current account overdraft query

aliasojo

Does anyone know if going overdrawn on a Cahoot current account would show up on your credit reference?

The Cahoot account has a £500 overdraft limit and the first £250 is free. I'm transferring loads of stuff all within a very short space of time to take maximum advantage of 0% offers etc, and although I have it down to a fine art, lol...I realise it might not work quite as precisely as I'm expecting.

If the worst comes to the worst, I can use the free overdraft as a buffer just in case the transfers take longer than expected and a d/d needs to go out but I don't want to do this if it will affect my credit ref. I have never gone overdrawn and I can't remember if this type of thing is included in the ref?

margaretclare

Well, I frequently use the £250 interest-free part of my £500 overdraft with cahoot. I decided to get an Experian report just from curiosity really. About cahoot, it says: date started (i.e. when account opened, overdraft balance £0, overdraft limit £500, status history 0000000, in last 27 months number of status 1-2 is 0, number of status 3+ is 0.

AFAIK there will only be an adverse report if there has been a default. In other words, there's this agreement between you and cahoot - they allow the 0% O/D facility but expect it to be paid off monthly, which it normally would be when you receive income into it. So you haven't broken the agreement. If you did, it would be recorded.

HTH

Aunty Margaret

aliasojo

Brilliant, thank you for reply, The overdraft would only be needed for a few short days (if that), so it's good to know it should not have any effect on the credit ref.

buses7675

Hi All,

I was wondering the same, so thanks - I have never needed to use the overfraft, but find this useful to know. One point that is noteable is that you say Cahoot expect this to be repaid monthly, but how about the people who open a Cahoot current account then place the £250 overdraft into savings, and keep it there permenantly earning them interest?

Cheers

Steve