Overdraft Support
Discussion
If you don’t need the overdraft then why are you asking about it!
Just be honest with us your overdrawn most months and you can get a £500 overdraft interest free for 12 months go for it ,but don’t forget it all needs paying back and yes it will show on your credit score if your using it.
Just be honest with us your overdrawn most months and you can get a £500 overdraft interest free for 12 months go for it ,but don’t forget it all needs paying back and yes it will show on your credit score if your using it.
I think HSBC have offered this for years.
Perhaps not £500 though, mine might be £50 or £100.
Just thought it might save a penalty, if I made a mistake.
Don't know about the credit score question.
The last Duke of Edinburgh, had a joke about his own credit score.
"Probably very bad. I don't have employment and I don't own a house."
Barclays did a similar thing when I worked for them. It's a gateway to getting you used to using it then they remove it and start charging for it. Then they invite you in for an Account Review and the idea goes something like this:
"I see you regularly use your overdraft and incur charges, we can change that to a small loan and save you money!"
Next review:
"Your loan is going well, have you any other plans coming up? New car, home improvement, holiday? We can extend the loan if you would like?"
And so on.
Obviously it doesn't work on the financially savvy people on here but on the general public it does and sucks them into the debt merry-go-round. Works for credit card debt too, both are basically Gateway products for them to make money out of you for years.
"I see you regularly use your overdraft and incur charges, we can change that to a small loan and save you money!"
Next review:
"Your loan is going well, have you any other plans coming up? New car, home improvement, holiday? We can extend the loan if you would like?"
And so on.
Obviously it doesn't work on the financially savvy people on here but on the general public it does and sucks them into the debt merry-go-round. Works for credit card debt too, both are basically Gateway products for them to make money out of you for years.
Can it affect your credit score? Yes it can if you constantly use any "credit" instead of your own funds. It will flag up on experian, or whatever credit score provider you wish to use.
I have 2 overdrafts and credit cards I used to use alot to build up my score. I'd take a chunk out and put a chunk in. However, trying to improve my score using this method backfired and I ended up losing what I gained. The credit reporters stated I was too reliant on it, when that wasn't my intention.
A bit of a p*so take really, considering I was doing it to improve on things. Now I just have it there as a safety net or if one of the appliances go bang like my fridge last year.
Personally I'd take it, for a rainy day.
I have 2 overdrafts and credit cards I used to use alot to build up my score. I'd take a chunk out and put a chunk in. However, trying to improve my score using this method backfired and I ended up losing what I gained. The credit reporters stated I was too reliant on it, when that wasn't my intention.
A bit of a p*so take really, considering I was doing it to improve on things. Now I just have it there as a safety net or if one of the appliances go bang like my fridge last year.
Personally I'd take it, for a rainy day.
goldieandblackie said:
If you don’t need the overdraft then why are you asking about it!
Just be honest with us your overdrawn most months and you can get a £500 overdraft interest free for 12 months go for it ,but don’t forget it all needs paying back and yes it will show on your credit score if your using it.
Did you actually read the OP before getting on your high horse?Just be honest with us your overdrawn most months and you can get a £500 overdraft interest free for 12 months go for it ,but don’t forget it all needs paying back and yes it will show on your credit score if your using it.
If someones only borrowing was a home mortgage, then after that was completed, only used two credit cards for quick payment,
always settled in full each month, would that mean they would probably have a poor credit score?
There would be no history of loans or PCP, to create a good or bad record.
Are the scores simply marks out of (say) 100 ?
2 GKC said:
goldieandblackie said:
If you don’t need the overdraft then why are you asking about it!
Just be honest with us your overdrawn most months and you can get a £500 overdraft interest free for 12 months go for it ,but don’t forget it all needs paying back and yes it will show on your credit score if your using it.
Did you actually read the OP before getting on your high horse?Just be honest with us your overdrawn most months and you can get a £500 overdraft interest free for 12 months go for it ,but don’t forget it all needs paying back and yes it will show on your credit score if your using it.
Hi All, thanks for the advice so far. I perhaps should have been a bit clearer in my original post. I have had an arranged overdraft facility up to £500 for years and it was always a very low interest rate, then the law changed a few years ago and the interest rates went high on overdrafts regardless if they were agreed or not. As I said, I regularly use it. What HSBC have recently suddenly offered, is to not charge interest on it due to the current cost of living crisis. What I'm concerned about, is if I accept this short term low interest rate, will it affect my credit score? I my mind I can imagine Experian seeing it as a 'This person is struggling to pay their overdraft interest' and lower my score accordingly. On the other hand if it won't effect my score it means I can save a few quid over the year on interest.
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