Does sitting in the red hurt much ?

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Hi

I have a overdraft and can go all the way down to minuse £1250, interest free. Does using this facility hurt my financial rating much ? Just to say get by til payday a month later ? Curious side getting the better of me ;)

Thanks
 
I'm not an expert but if you are given an overdraft then there is no reason why using it would have any negative affects on your ratings. If you were to go over your overdraft limit then that's a different story.

Either way if you are going to be putting the money back soon it's hardly going to cause any bad things to happen. Besides, I have been living out of my overdraft for almost a year now, no problems yet :D
 
I always get paid.thats not going to change so got a income every month to bring things back in line. Just Im wondering if sitting at say -£600 til next payday will hurt me much in the long run ?
 
I don't think so (but I am no finiancial expert) as they usually look for a constant income over the ammount (like monthly pay or the like).

Rich
 
I'll be £1,730 overdrawn when the money for my Glasto' ticket comes out of my account and i've been sitting at around -£1,000 for my entire academic life and i haven't had any problems. Can't foresee any either. :)
 
NO it will not not hurt you in any way.

You have an agreement with the bank for you to use this facility and if you use it correctly (not going over and paying in some money every month ) then it wont effect your credit file.
 
So even if i sit at a minus for a few months will it be ok ? Like have say a sudden expenditure that i cant afford and slowly bring myself back to the elusive "black" over a few months ?
 
Is isnt considered debt as such as you have agreed with the bank to have this facility.

Most banks dont report on your credit file anyway unless you are a bad boy. They have millions of customers and it costs them money to do
 
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