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    • spare one
    • By spare one 9th Mar 18, 11:48 AM
    • 21Posts
    • 9Thanks
    spare one
    Does an account without overdraft affect score?
    • #1
    • 9th Mar 18, 11:48 AM
    Does an account without overdraft affect score? 9th Mar 18 at 11:48 AM
    Hi

    Can a bank account which doesn't have an overdraft allowance or any credit card affect my credit score?

    If I switch to a different bank can this have any affect?

    And does it make any difference if I had such an account open for many years?
Page 1
    • DCFC79
    • By DCFC79 9th Mar 18, 11:54 AM
    • 31,652 Posts
    • 19,963 Thanks
    DCFC79
    • #2
    • 9th Mar 18, 11:54 AM
    • #2
    • 9th Mar 18, 11:54 AM
    Hi

    Can a bank account which doesn't have an overdraft allowance or any credit card affect my credit score?

    If I switch to a different bank can this have any affect?

    And does it make any difference if I had such an account open for many years?
    Originally posted by spare one
    Don't concern yourself with a number lenders don't see, what matters is the credit history is correct.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • spare one
    • By spare one 9th Mar 18, 11:56 AM
    • 21 Posts
    • 9 Thanks
    spare one
    • #3
    • 9th Mar 18, 11:56 AM
    • #3
    • 9th Mar 18, 11:56 AM
    Do lenders consider either of those things good or bad behavior?
    • SnowTiger
    • By SnowTiger 9th Mar 18, 12:25 PM
    • 3,271 Posts
    • 2,239 Thanks
    SnowTiger
    • #4
    • 9th Mar 18, 12:25 PM
    • #4
    • 9th Mar 18, 12:25 PM
    Do lenders consider either of those things good or bad behavior?
    Originally posted by spare one
    An overdraft is a line of credit. It may have a positive affect, especially if it isn't used.

    Having an account for a long time is generally seen as a good thing. Credit applications often ask how long you've been your your bank.
    • stehouk
    • By stehouk 9th Mar 18, 7:12 PM
    • 88 Posts
    • 31 Thanks
    stehouk
    • #5
    • 9th Mar 18, 7:12 PM
    • #5
    • 9th Mar 18, 7:12 PM
    I never have an overdraft and i don't ask for one when switching, i might be wrong but i think the banks look a little bit closer at you and your'e history if you ask for an overdraft as it is a line of credit, having credit cards with regular small usage and paid off in full every month can boost your'e score if that's what you are after, as mentioned on here though it's your'e history that matters.
    • Westie983
    • By Westie983 10th Mar 18, 11:24 AM
    • 4,333 Posts
    • 14,890 Thanks
    Westie983
    • #6
    • 10th Mar 18, 11:24 AM
    • #6
    • 10th Mar 18, 11:24 AM
    Hi

    Can a bank account which doesn't have an overdraft allowance or any credit card affect my credit score?

    If I switch to a different bank can this have any affect?

    And does it make any difference if I had such an account open for many years?
    Originally posted by spare one
    Switching account can reduce your credit score, as its a new account, but its nothing too much to worry about it repairs itself each months its opened.

    Overdraft can especially if you use all of it or near the limit, again repairs itself as you reduce it month on month...

    Having account opened for years is looked on favourably as it shows you can keep an account in order...

    Westie983
    Save 12k in 2018 #10 Total (25,000)+10,000/12,000 = 83.33%
    Sealed Pot Challenge ~ 11 #97 Total (410) + 40/500 = 8.00% ( x 11)
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    Virtual Sealed Pot #1 Total 750/1,000 = 75.00%
    2 Savers Club 2018 #16 Total (1,500)+-480/2,000 = 51.00%

    Total 11,872.59/15,865 = 74.83%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • spare one
    • By spare one 11th Mar 18, 6:48 PM
    • 21 Posts
    • 9 Thanks
    spare one
    • #7
    • 11th Mar 18, 6:48 PM
    • #7
    • 11th Mar 18, 6:48 PM
    Thanks.

    Where can I find info on the subject from an 'official' source?
    • Gary_Dexter
    • By Gary_Dexter 11th Mar 18, 8:30 PM
    • 1,150 Posts
    • 643 Thanks
    Gary_Dexter
    • #8
    • 11th Mar 18, 8:30 PM
    • #8
    • 11th Mar 18, 8:30 PM
    Official source for what?

    That the scores are made up?
    • YorkshireBoy
    • By YorkshireBoy 11th Mar 18, 8:51 PM
    • 30,147 Posts
    • 17,998 Thanks
    YorkshireBoy
    • #9
    • 11th Mar 18, 8:51 PM
    • #9
    • 11th Mar 18, 8:51 PM
    Where can I find info on the subject from an 'official' source?
    Originally posted by spare one
    An underwriter, systems analyst, programmer, or 'Head of Risk' working for one of the banks. Please do let us know if they back up, or not, what the 'unofficial' sources here say.
    • Superscrooge
    • By Superscrooge 12th Mar 18, 6:55 AM
    • 1,081 Posts
    • 775 Thanks
    Superscrooge

    Where can I find info on the subject from an 'official' source?
    Originally posted by spare one
    Not sure whether the Daily Mail counts as an official source?? But this was a recent article about how Experian calculates your score

    http://www.thisismoney.co.uk/money/cardsloans/article-5414557/Forget-pay-bill-hurt-credit-rating.html

    In many ways it reinforces the argument to concentrate on the information in your credit file and not get obsessed by your actual score.
    • spare one
    • By spare one 18th Mar 18, 2:42 PM
    • 21 Posts
    • 9 Thanks
    spare one
    I checked that link but couldn't find anything about an account without any credit (without an overdraft).
    • PaulW922
    • By PaulW922 18th Mar 18, 4:54 PM
    • 794 Posts
    • 308 Thanks
    PaulW922
    As others have said, your 'score' is not too important as only you see it. I do not agree that it is 'made up', but it is just a guide for you, produced by Experian or whoever to give you an idea where you stand. It is nothing more than that.

    But as far as your credit history goes- yes a current account (including a basic one) can have an impact and unless you manage the account badly, it is usually a positive impact. Not going over your limit or continually having payments returned will result on good conduct being reported back.

    i think basic account types can be of great value to people with limited or impaired credit history trying to rebuild their profile.
    • lolcaz
    • By lolcaz 19th Mar 18, 2:06 PM
    • 15 Posts
    • 2 Thanks
    lolcaz
    Disregarding the worth of a credit score altogether, yes, it does have an impact.

    I became a massive bank tart and opened several accounts for several switching bonuses. My credit score did take a hit, as I made lots of applications and my overall account age dropped.

    Should you worry about it? Probably not. In a year, these applications won't be seen on the report anyway, and you'll have just blagged yourself some free cash for the trouble.

    If you're only doing one switch, I can't imagine it making the slightest bit of difference to any lenders.
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