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  • FIRST POST
    • moatmeister
    • By moatmeister 9th Nov 18, 9:26 PM
    • 290Posts
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    moatmeister
    Effect of overdraft on credit file??
    • #1
    • 9th Nov 18, 9:26 PM
    Effect of overdraft on credit file?? 9th Nov 18 at 9:26 PM
    How much and what effect does having an overdraft have on your credit file? Is there any preference in paying an overdraft off or paying a credit card balance down in terms of the effect on your credit file?
Page 1
    • Gary_Dexter
    • By Gary_Dexter 9th Nov 18, 9:35 PM
    • 2,597 Posts
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    Gary_Dexter
    • #2
    • 9th Nov 18, 9:35 PM
    • #2
    • 9th Nov 18, 9:35 PM
    In what sense are you asking?

    If you mean the made up score/rating then no effect.

    Using an overdraft can make you look desperate for cash to some lenders
    • moatmeister
    • By moatmeister 9th Nov 18, 9:49 PM
    • 290 Posts
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    moatmeister
    • #3
    • 9th Nov 18, 9:49 PM
    • #3
    • 9th Nov 18, 9:49 PM
    As I asked really. In order to improve your credit file with a view to encouraging further borrowing in the future, is it best to pay off an overdraft or pay down a credit card?
    • Gary_Dexter
    • By Gary_Dexter 9th Nov 18, 9:55 PM
    • 2,597 Posts
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    Gary_Dexter
    • #4
    • 9th Nov 18, 9:55 PM
    • #4
    • 9th Nov 18, 9:55 PM
    It depends.

    How much is owing on each and what are the interest rates?
    • Dobbibill
    • By Dobbibill 9th Nov 18, 11:53 PM
    • 3,398 Posts
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    Dobbibill
    • #5
    • 9th Nov 18, 11:53 PM
    • #5
    • 9th Nov 18, 11:53 PM
    I echo what YB has said - an overdraft is normally used to gap fill the month - clearing and not using an overdraft demonstrates you can budget month to month.
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