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  • FIRST POST
    • Simon1964
    • By Simon1964 7th Jan 18, 10:16 AM
    • 3Posts
    • 4Thanks
    Simon1964
    Will having a larger overdraft facility improve my credit score?
    • #1
    • 7th Jan 18, 10:16 AM
    Will having a larger overdraft facility improve my credit score? 7th Jan 18 at 10:16 AM
    I want to improve my credit score after a period of bad debt. My score is gradually improving but I'm looking for ways to improve this faster. I have no credit cards and have been paying all my bills regularly. My bank has advised that I am likely to be accepted for a large overdraft facility which I'm reluctant to apply for and I regularly get mail shots telling me I have been pre approved for a high interest cards.

    I don't either but to improve my credit score would it be better to take out a new credit card and not use it or have a large overdraft faculty, which I understand is a form of credit.

    I have done everything else I can to make sure there are no adverse features on my credit report.

    Many thanks
Page 1
    • BoGoF
    • By BoGoF 7th Jan 18, 10:23 AM
    • 3,215 Posts
    • 2,537 Thanks
    BoGoF
    • #2
    • 7th Jan 18, 10:23 AM
    • #2
    • 7th Jan 18, 10:23 AM
    Taking out a credit card and not using it would be pointless. Dont get hung up on improving your meaningless score but if you want to improve your credit file you need to demonstrate you can handle credit so taking a card and paying in full every month would be a start.

    To the best of my knowledge increasing an overdraft wont help and is likely to be detrimental.
    • nic_c
    • By nic_c 7th Jan 18, 10:36 AM
    • 1,524 Posts
    • 834 Thanks
    nic_c
    • #3
    • 7th Jan 18, 10:36 AM
    • #3
    • 7th Jan 18, 10:36 AM
    Don't see any point getting an overdraft, I concur it is likely to be negative. If you want a credit card, find which of your bills allow payment by credit card or get one and use it for shopping but have a DD set up to clear the balance each month, or ensure you pay it off each month.

    Having an O/D facility you don't use,isn't any benefit and using it shows you can't manage your bank account.
    Applying for a credit card may damage your "score" in the short term.
    Having a credit card that isn't used, doesn't demonstrate much and may get closed if inactive for a while.
    Using a credit card and managing it shows you can handle credit. The recommendation is to only use it for normal spending (don't use additional credit purely to boost a score) and pay in full after the statement. The reason to do after the statement is so that it is reported to the CRA's with a balance and the reason to pay in full is to avoid paying interest - no point in paying interest because you think it will boost your credit, it won't any more than paying off in full. The reason for using it for normal shopping is the money you would have used will be still in your bank account and can be used to pay it off when the time comes. Of course if you are struggling and its likely you won't be able to leave money in the account to pay the card off, then don't get a card - you are far better having no card and paying your bills than trying to boost your credit worthiness and ending up with a credit card balance that is growing and incurring interest and may ultimately damage your credit worthiness if it gets too much.
    • Gary_Dexter
    • By Gary_Dexter 7th Jan 18, 10:55 AM
    • 1,314 Posts
    • 757 Thanks
    Gary_Dexter
    • #4
    • 7th Jan 18, 10:55 AM
    • #4
    • 7th Jan 18, 10:55 AM
    You don't have a score to improve.
    No one does.

    You have a credit file with data in it that you can improve and keep up to date with.
    • DCFC79
    • By DCFC79 7th Jan 18, 11:05 AM
    • 31,920 Posts
    • 20,103 Thanks
    DCFC79
    • #5
    • 7th Jan 18, 11:05 AM
    • #5
    • 7th Jan 18, 11:05 AM
    It wont improve overnight but like many things in life it will take time and patience.

    Why ae you wanting to improve it faster ?
    • Simon1964
    • By Simon1964 9th Jan 18, 11:07 PM
    • 3 Posts
    • 4 Thanks
    Simon1964
    • #6
    • 9th Jan 18, 11:07 PM
    Thanks for the advice
    • #6
    • 9th Jan 18, 11:07 PM
    Many thanks for all the comments. I was under the impression that having available unused credit was good for your score. I have hated being in a position of not being able to get credit and want to know when I do decide to apply I'm likely to get accepted. My score is improving so I guess I will just have to be patient. I have plenty of current credit, mortgage, mobile phone contracts, utility bills etc so maybe I don't need to worry about a credit card.
    • Gary_Dexter
    • By Gary_Dexter 9th Jan 18, 11:17 PM
    • 1,314 Posts
    • 757 Thanks
    Gary_Dexter
    • #7
    • 9th Jan 18, 11:17 PM
    • #7
    • 9th Jan 18, 11:17 PM
    You don't need to worry about a fictitious number either
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