Remove or keep overdraft

Roe_Red_2024

Hi, I have consistently been in my overdraft for many years now but am not being charged interest as I’m on a very low income at the moment. I have 2 overdrafts dating back about 10 years, the first is £900 and second is £300. I’m due to inherit a bit of money and wanted to sort out my financial position. Once the overdrafts are not in use should I remove them or keep them? Are they any good for improving my credit rating even if I don’t go into the overdraft again? Thanks

Emmia

Roe_Red_2024 said:

Hi, I have consistently been in my overdraft for many years now but am not being charged interest as I’m on a very low income at the moment. I have 2 overdrafts dating back about 10 years, the first is £900 and second is £300. I’m due to inherit a bit of money and wanted to sort out my financial position. Once the overdrafts are not in use should I remove them or keep them? Are they any good for improving my credit rating even if I don’t go into the overdraft again? Thanks

I'd remove them.

If you retain one, I'd reduce it to a low level £50/£100. 

fatbelly

It's not going to look good that you are in debt on a bank account. Even though they are 0% I'd get out of the red and stay out

Whatever your limit is will continue to show so I agree. Keep it low