Pay off my credit card or overdraft first?

SpenderAholic

Hi everyone,

I'm hoping for some advice. I'm desperate to clear my debts and clean up my credit history in the hopes of buying a house sometime in the next century. I have an overdraft of £2500 on my bank account that is maxed, and have an £800 on my Egg card that they kindly closed for me earlier in the year. Both have similar interest rates, so I was hoping for some advice about which to pay off first for the purpose of improving my credit rating? If I pay off me credit card first, does that mean it will appear as if my bank account has been overdrawn on my credit file (even though it's an approved overdraft)?

Any advice on this one would be greatly appreciated!

bethanyrayne

SpenderAholic wrote: »

Hi everyone,

I'm hoping for some advice. I'm desperate to clear my debts and clean up my credit history in the hopes of buying a house sometime in the next century. I have an overdraft of £2500 on my bank account that is maxed, and have an £800 on my Egg card that they kindly closed for me earlier in the year. Both have similar interest rates, so I was hoping for some advice about which to pay off first for the purpose of improving my credit rating? If I pay off me credit card first, does that mean it will appear as if my bank account has been overdrawn on my credit file (even though it's an approved overdraft)?

Any advice on this one would be greatly appreciated!

Since Egg is the smallest and you say the interest rates are similar I would clear Egg first. At least you will have a settled by the account on your file.

Maybe get a loan from your bank to clear both.

Your overdraft balance at the time the bank reports it will show on your file.

Megalomaniac

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dhassen

I wasn't sure if overdrafts appear on your credit reports? I've had a couple of the reports in the past, one from equifax and two from experian and none of these mentioned my bank account...... wonder if this is normal?

I'd agree with bethanyrayne and clear egg first though.

rachael24_2

Yes overdrafts appear...You must go through checksystems, which shows everything.

salfaro

I have checked credit reports from Equifax and Experian but none of them showed that I have unpaid overdraft.
it is clearly shown on the report - "Overdraft balance - £0"

So I dont think they show overdraft or maybe the Bank did not give that information to them!

dhassen

I've been told that most older accounts don't appear at all.

the_crunch

My overdraft and current account was on my experian file, but isn't at the moment - i think its because I moved house and changed addresses with my banks, which means they are probably updating my details or something... wonder how long it will take....