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Topic: Does Using Overdraft Affect My UK Credit?  (Read 1411 times)

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Does Using Overdraft Affect My UK Credit?
« on: December 13, 2008, 02:13:06 PM »
I have had a bank account for the past month with a £100 overdraft. I was hoping not to use the overdraft, but my husband has been out of work shy of 6 weeks now and we were down to no money for petrol my first week working to get me to Birmingham. We've dipped in already to my overdraft now, but I do have a direct deposit going in every 2 weeks from my new employer. My worry is that until he is employed again, we're having to dip in each time in order to make ends meet. Will this negatively affect my building credit in the UK? I've been here since August, but I have only had the account a short amount of time.
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Re: Does Using Overdraft Affect My UK Credit?
« Reply #1 on: December 13, 2008, 02:24:27 PM »
No. As long as you pay it off each month. I go into mine nearly every month - if anything I would think it helps as long as you don't exceed the agreed amount and have a deposit to cover it within a month. It's a bit like having a credit card that you use and pay off.


Re: Does Using Overdraft Affect My UK Credit?
« Reply #2 on: December 14, 2008, 06:45:00 PM »
As has been said elsewhere on here, in the UK the banks and the customers see an overdraft as a useful convenience, there to be used if necessary (with fee and/or interest  attached usually) . Dipping into (or even maxing) a £100 overdraft is neither here nor there in creditworthiness terms really, as long as you manage it responsibly.


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Re: Does Using Overdraft Affect My UK Credit?
« Reply #3 on: December 14, 2008, 11:04:22 PM »
Thank you both for your replies. I guess I'm still used to reacting or worrying the way I would in the US about using money I "don't have." I want to be able to have a good history with the bank so I can request a loan down the line.
23 Jan 06 - Met Online
17 Jul 07 - ENGAGED!!! :-D
30 Jun 08 - Applied for Fiance Visa
22 Jul 08 - Received Visa
01 Aug 08 - Arrived in UK!
01 Nov 08 - MARRIED!!!
03 Nov 08 - In-person FLR(M) - GRANTED!!

19 Dec 09 - 1st son born :)

02 Oct 10 - KOL Passed
26 Oct 10 - ILR app (posted Special Delivery)
27 Oct 10 - online tracking confirmed delivery
30 Oct 10 - Confirmation via post
15 Nov 10 - ILR granted/documents returned!!!

05 Nov 13 - 1st daughter born :)


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