Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • donlste
    • By donlste 12th May 18, 12:37 AM
    • 20Posts
    • 1Thanks
    donlste
    To have an overdraft or not?
    • #1
    • 12th May 18, 12:37 AM
    To have an overdraft or not? 12th May 18 at 12:37 AM
    Hi All,

    I was wondering if someone could offer me some advice please.

    I'm in the process of paying my debts off and sorting my credit file out.

    My question is this; I have an overdraft of £250, however from a credit report point of view, would it look better to cancel this, or to keep it and not use it?

    I was wondering if by keeping it, but not using it would reflect better on my credit report? Thinking this would show good money management.

    Many thanks
Page 1
    • Grzegorz Kowalski
    • By Grzegorz Kowalski 12th May 18, 2:33 AM
    • 20 Posts
    • 8 Thanks
    Grzegorz Kowalski
    • #2
    • 12th May 18, 2:33 AM
    • #2
    • 12th May 18, 2:33 AM
    I think the best is to have it, but not to use it. There is something magical with "utilisation": For lenders, you look much better with 5k debt and 50k limits, than with maxed CC with 300 limit.
    • binaryuniverse
    • By binaryuniverse 12th May 18, 7:51 AM
    • 714 Posts
    • 443 Thanks
    binaryuniverse
    • #3
    • 12th May 18, 7:51 AM
    • #3
    • 12th May 18, 7:51 AM
    Showing you don't need to use an available overdraft is a sign you are good with your money. Keep it.
    • Dobbibill
    • By Dobbibill 12th May 18, 8:15 AM
    • 3,213 Posts
    • 4,118 Thanks
    Dobbibill
    • #4
    • 12th May 18, 8:15 AM
    • #4
    • 12th May 18, 8:15 AM
    While paying down your debt, keep it but don't use it for the utilisation.

    Once DF you can get rid of it if you want but at such a small amount it probably won't make a difference either way.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • Dandytf
    • By Dandytf 14th May 18, 8:50 AM
    • 1,356 Posts
    • 422 Thanks
    Dandytf
    • #5
    • 14th May 18, 8:50 AM
    • #5
    • 14th May 18, 8:50 AM
    To add 250 o/d limit is quite sensible.
    It's nice safety net even to avoid unexpected charges.
    I agree with others, rather than cancel-try avoid using it as much as possible and don't worry if you do use it sometimes for financial emergencies.
    E.g. I wasn't using my 250 overdraft recently until I had to pay 275 for car bodywork repair last week.
    Though cause I budget as much as possible, I'll clear overdraft over next few weeks.
    sc dmp 2012 13k Jan 2018 8840 paid. 60% approx.
    Mid 2018 Help2save 50 uk pounds per month
    Mid 2018-Virgin Money E-saver V11 -250+50 uk pounds per month
    • donlste
    • By donlste 16th May 18, 8:40 PM
    • 20 Posts
    • 1 Thanks
    donlste
    • #6
    • 16th May 18, 8:40 PM
    • #6
    • 16th May 18, 8:40 PM
    Many thanks for the advice! Iíll keep it there!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

99Posts Today

1,384Users online

Martin's Twitter