Do overdrafts affect credit score?

Skeptic

Skeptic

Skeptic

Soldato
Joined
18 Oct 2002
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UK
Hey all,

Asking this on behalf of a friend. She has gone overdrawn this month, but has an agreed overdraft of 2k. If she uses her overdraft like this, what affect does it have on her credit score, if any? Or is it because she is within her agreed overdraft it makes no difference?

Many thanks.

(PS she's pretty hot, so you know, maybe I'll get lucky if I help with this.....maybe not.)
 
As long as she is within her agreed OD and is not constantly in it I doubt it affects her credit score that much.

In fact sensible managed debt increases your credit score rather than decreasing it. Just don't live in the OD, don't have more than 2 Credit Cards, stay well below the maximum balance and make every payment on time and your friends credit score will be fine within her given income demographic.
 
as long as you dont miss payments then you dont get anythikng negative, any debt you ahve that you pay on time etc increases your credit rating. Although obviously if you have loads of debt already then they wont give you more after a certain point.
 
Any credit you have which you don't default on will help your rating not hinder it. If she didn't pay her CC bill for 3 months in row for example it would be bad. Constantly going over your agreed overdraft would also be bad.

Slipping up occasionally doesn't hurt though.

This is why at 21 I had an experian credit score of 999, I'd had a 10k loan and paid it off, an overdraft and used credit cards and never defaulted. Hense people clamouring to give me more credit.
 
I've had an overdraft now for over a year and recently when viewing my credit score it did display that I had an overdraft and also how much inside it I was at the time of obtaining the credit report and how well on track I was with the payments. I've slipped up up a couple of times where I have gone over slightly by like £2 but I always payed it back in full within a couple of days and it never showed on my credit report.

Liam
 
Last edited:
LEK-89 said:
I've had an overdraft now for over a year and recently when viewing my credit score it did display that I had an overdraft and also how much inside it I was at the time of obtaining the credit report and how well on track I was with the payments. I've slipped up up a couple of times where I have gone over slightly by like £2 but I always payed it back in full within a couple of days and it never showed on my credit report.

Liam
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that's because credit scores show how much credit you have, if you aren't overdrawn that doesn't count as credit, what it will show is you have the facility available to you and the limit amount, simples :)
 
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