Does going into unauthorised overdraft harm credit rating?

Even if you pay it off promptly?

Does going into unauthorised overdraft harm credit rating?
Not if you clear it within 28 days. Most banks report to the credit reference agencies monthly so as long as you run it up and clear it within the same month, you should be ok
Reply:If you leave it for more than a month over, then yes.





However, it is worth asking you bank if they do report back to the bureaux (in UK, Equifax, Experian and Call Credit).





Sometimes they may keep it internal and only disclose it if you are in default.





If they DO disclose it to the credit bureaux, then you will see a payment record like this (made up examples);


Start date: 10-06-2001


Finance Type: Current account / overdraft


Credit Limit: £1,000


Balance: £1,103OD


Default date: NA


Payment history: 000000000100





It's this last string of numbers that you need to be concerned about, as they show the in the last 12(or24mths) how many payments in arrears you have been. The `1` means you were one month in arrears.





I have been in credit (and consumer credit) for 15+yrs and a string with a couple of 1`s surrounded by 0's will usually be overlooked. Also, the balance here is £103+ over the limit - in itself, not too bad, and other creditors would put it down to a bad month (changing jobs, moving house etc)





A string like this 000000101001123456D is bad, as it means you have let it go into arrears month-on-month, and the `D` usually means a default in the account - bring in the lawyers and court records.





Advise:


1) Check that your bank reports back to the credit bureaux


2) Keep your accounts up to date


3) Get a copy of your credit records from these credit bureaux.





Cheers - Brad M
Reply:It can if you don t repay within a month.





Now, it will definitely affect your relation with your bank in the future should you wish to borrow money.





I will strongly recommend you to check your credit report to give you a better picture of your credit situation...and "evolution"





Experian is offering a free credit report on


http://www.financecomparator.co.uk/credi...





Otherwise, the other ones like Equifax and Callcredit are good too
Reply:It shouldnt effect your credit rating but it will show on bank statements so if you go for a mortgage some companies will ask for 3 months good conduct bank statements so this could have an effect. If you arent going for a mortgage or anything like that then you should be fine - just try not to do it too much.
Reply:One occurance of overdraft won't damage your credit rating. Having repeated offenses, or failing to fix it promptly (it was outstanding longer than a billing cycle), can.





Your credit rating takes many factors into consideration, and one error won't impact the score significantly.
Reply:No!
Reply:It will not harm your credit but it will do your bank


account in.
Reply:Any information can be given to the credit reference agency





This can include authorised unauthorised overdrafts. Good payer..bad payer etc etc etc





The file is simply a history of your movement in the financial world

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