student overdraft

So i’ve been in my overdraft in and out since end of first year and i’m currently in the end of my second year. I’ve been at different levels of my overdraft throughout this year and currently i’m like 1.5k in it, however, I’ll be paying it back this summer and staying out of it as I’m living at home next year and will be working full time over summer. I’m just worried that this will affect my ability in the future to get a mortgage or anything like that even if I’ve paid it all back years before as a student. Does anyone have any insight on this?

Reply 1

martin7

Original post by scorpioeve

I suspect most students end up using their overdraft, so no mortgage lender is going to surprised to see you've being making use of it. What lender will like to see is that you're managing your overdraft well -- in particular that you're paying it off over the summer.

Bear in mind that data is retained on your credit report for 6 years -- so over time, the records of your credit use as a student will start vanishing from it. What lenders like to see is a consistent pattern of using credit responsibly; for example, not exceeding your agreed credit limits, paying off debt in accordance with the credit agreement, not making late payments or missing payments, etc.