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    • donlste
    • By donlste 12th May 18, 12:37 AM
    • 20Posts
    • 1Thanks
    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
    • 9 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
    • 803 Posts
    • 515 Thanks
    • #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
    • 3,553 Posts
    • 4,686 Thanks
    • #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.
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    • Dandytf
    • By Dandytf 14th May 18, 8:50 AM
    • 1,816 Posts
    • 462 Thanks
    • #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 2019 9880paid. 75%approx.
    Mid 2018 Help2save 50 uk pounds per month
    Mid 2018-Virgin Money E-saver V11 -n/a-t.b.c.
    • donlste
    • By donlste 16th May 18, 8:40 PM
    • 20 Posts
    • 1 Thanks
    • #6
    • 16th May 18, 8:40 PM
    • #6
    • 16th May 18, 8:40 PM
    Many thanks for the advice! Iíll keep it there!
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