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    Credit score advice / overdraft

    I have had an account with Halifax for several years, and they have asked me if I would like to increase my overdraft from £1000 to £5000.

    My quick question is, will a large but unused overdraft increase my credit score, make no difference, or have an adverse effect?

    Thanks,

    Pete

    4 Comments

    meispete

    I have had an account with Halifax for several years, and they have asked … I have had an account with Halifax for several years, and they have asked me if I would like to increase my overdraft from £1000 to £5000.My quick question is, will a large but unused overdraft increase my credit score, make no difference, or have an adverse effect?Thanks,Pete



    Issuing a large overdraft indicates that you are credit-worthy :thumbsup:

    If you dont use it your credit rating will have no impact but using the overdraft & sticking to minimum payment & quick repayments will increase ur credit rating.

    If you're thinking of using the overdraft facility to borrow more than £1000 & repaying over 12 months or so, you'll be better off going for a personal loan.

    Original Poster

    Thanks for the fast reply!
    I have no intention at the minute of using my overdraft at either £1000 or £5000. I just know that sometimes stupid things (like having lots of credit available) makes you a better candidate to get even more credit! (As illogical as it seems to me!)

    If it were you, would you bother increasing it or just leave it be?

    meispete

    Thanks for the fast reply!I have no intention at the minute of using my … Thanks for the fast reply!I have no intention at the minute of using my overdraft at either £1000 or £5000. I just know that sometimes stupid things (like having lots of credit available) makes you a better candidate to get even more credit! (As illogical as it seems to me!)If it were you, would you bother increasing it or just leave it be?



    I've been offered similar but smaller deal & accepted it. Costs nothing but may help to keep 'unauthorised overdraft charges' at bay (who knows ) :-D.

    Accepting a large overdraft whether unused or not will reduce your overall credit available. If you don't need it, don't accept it.
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