Overdraft to keep or not to keep?

Callumrayb
Callumrayb Posts: 66 Forumite
First Anniversary First Post
in Credit file & ratings
Hello, so if anyone remembers my old thread tldr I was worried about my credit history and how to build it. I have figured out and struggled my way through the hoops to build a positive credit history and today I finally got an overdraft on my bank account. I have held an aqua card for a month with a £300 limit, only used £40 of it and when the statement came through I immediately paid it.

My bank offered me an overdraft today and I got accepted for up to £1500 guaranteed. I was wondering if I should keep it (for emergencies) or should I maybe lower it to something like £200? I'm not sure how overdrafts affect my credit file so any help would be appreciated. Thanks!
«1

Comments

  • jay1804
    jay1804 Posts: 425 Forumite
    First Anniversary First Post Name Dropper
    Keep it, and don’t lower it.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    Combo Breaker First Post Newshound!
    Keep it. Don't lower it. Most importantly don't use it.
  • boo_star
    boo_star Posts: 3,202 Forumite
    First Post First Anniversary
    I'd get rid of it.

    It won't be reported unless you use it, and as Ben8282 says, don't use it, so why even have it?
  • jefaz07
    jefaz07 Posts: 546 Forumite
    First Post Name Dropper First Anniversary
    boo_star wrote: »
    I'd get rid of it.

    It won't be reported unless you use it, and as Ben8282 says, don't use it, so why even have it?

    Mine is reported. And I haven’t ever used it.
  • boo_star
    boo_star Posts: 3,202 Forumite
    First Post First Anniversary
    jefaz07 wrote: »
    Mine is reported. And I haven’t ever used it.

    Really?

    It's usually only overdrawn balances that are reported.
  • nick74
    nick74 Posts: 829 Forumite
    Name Dropper First Post First Anniversary
    boo_star wrote: »
    Really?

    It's usually only overdrawn balances that are reported.

    Positive balances aren't reported, but the amount of the available overdraft facility is.
  • Callumrayb
    Callumrayb Posts: 66 Forumite
    First Anniversary First Post
    Thanks for the replies. I think I will keep it as a last resort emergency fund.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    Combo Breaker First Post Newshound!
    boo_star wrote: »
    I'd get rid of it.

    It won't be reported unless you use it, and as Ben8282 says, don't use it, so why even have it?
    Mine is reported also. The amount of the facility is shown but as unused balance is always 0.
  • Socajam
    Socajam Posts: 1,238 Forumite
    First Post Name Dropper First Anniversary
    I have a £3500 overdraft from NatWest for years now and have never used it.
    It's sitting there just in case
  • gionnetto
    gionnetto Posts: 234 Forumite
    First Anniversary First Post I've been Money Tipped!
    boo_star wrote: »
    Really?

    It's usually only overdrawn balances that are reported.

    Halifax reports the overdraft and how much you have available, not just the outstanding part.
    Your cholesterol levels are not seen, or used, by your heart and arteries, so ignore it.
    :eek:.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.9K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards