Point to reducing Overdraft limit?

RoboCod · 28 Sep 2012 at 17:08

Hi,

perhaps a noddy Q but is there any point to reducing the limit of an overdraft?

Would it be beneficial to reduce the limit or in fact could it be harmful to my credit rating? :confused:

Assuming of course that I would not be tempted to use the overdraft for anything more than an emergency (but I have two credit cards for that anyway)

Thanks

CP

RoboCod · 28 Sep 2012 at 17:20

Ok so as far as I can gather there would be no difference or merit to either reducing it or just leaving it as is other than the temptation factor if I keep it. Had it years so that isn't likely

RoboCod · 28 Sep 2012 at 17:45

grimm said:
Unless it's ridiculously huge just keep it as it is. There's no guarantee that if you actually needed it the bank would let you have it again. If you're not using it it won't make any realy difference to your credit rating (again, unless it's huge).

£2k and £2.5k so not huge. I wish I earned enough for the bank to happily offer me huge amounts of cash when I wanted

RoboCod · 29 Sep 2012 at 17:55

Some mixed views here it seems. My train of thought is just that I am to buy my first house in the new year, so I'm thinking whether it would be good to scrap my overdrafts (if it would positively improve my lending/mortgage capacity) or should I keep the available credit just in case I might need it in an emergency situation (say there is an unforeseen issue with my new home that costs me £1k's to remedy).

mrbell1984 said:
I never been in overdraft, always had the money to buy what I want. My overdraft on my current debit account is £100.00.

Wonderful, congratulations, I applaud you. *salutes*

RoboCod · 30 Sep 2012 at 20:40

mrbell1984 said:
Bows down. I was always taught if I don't have the money don't buy it.

Well that's just great, but whatever relevance any of your posts have to this thread I am not sure.

RoboCod · 30 Sep 2012 at 21:28

mrbell1984 said:
Nothing except to tutor that not to buy things we don't need. Want/Need e.t.c

Just lol.

Quite a narrow minded naive view point IMO.

RoboCod · 30 Sep 2012 at 21:29

BennyC said:
If you feel you need to, to stop you getting into trouble, then yes.

If you can handle having the credit facility and not using it then leave it be.

My building society offered me another credit limit increase this week and I happily took it despite having no intention of using it. But you never know when you might need it...(even temporarily).

I'm going to ask the mortgage advisor what he thinks regarding borrowing and any effects this may have.

RoboCod · 30 Sep 2012 at 21:42

mrbell1984 said:
The amount we waste for no reason is crazy as humans.

Yes, I understand, you're going to rant about something completely unrelated to the topic, effectively trolling. If the op was "please give me your view on credit, at the same time give us an idea just how narcissistic you are, oh and while you're at it, tell us all your overdraft limit" then you're just about there, however, I'm just not that interested.

Something I am interested to know though, am right to assume you never want/need a mortgage or higher education/degree say? Should anybody have these things if they're not rich to afford them out right? Because as far as I can read, this is what you believe yes?