I currently have a student bank account with a 0% overdraft fee up to £1500. I am yet to use the overdraft and I am trying my best not to. Would it be better for me to keep it like this and stay in the positive numbers or should I delve into it once or twice to show I can repay it? I don't know what would be better for a credit rating at the end.
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What happens if I don't use my overdraft? watch
- Thread Starter
- 15-02-2018 12:25
- 15-02-2018 12:46
Nothing will happen to it - dipping or not dipping in to your overdraft doesn't affect your credit rating because it's not a form of credit. It's just like being given £1500 with no strings except for the fact that you will eventually need to pay it back, but unlike a loan there are no interest payments, and no deadlines aside from the one you decide yourself when you eventually ask the bank to switch you to a "normal" bank account after you graduate.
The only way your overdraft would have any effect on your credit rating would be if you went past the £1500, or if you switched back to a normal account and missed the repayments.