Does going over your o/d limit affect your credit rating?

[GetYourHandsOfMyStack]

Hi - I'm moving house in the next couple of weeks, and have just filled out inof for a Maras credit check as the letting agent requires it. After thinking about is, I've got a bit stressed about my credit rating!. I'm currently over my overdraft limt by £170 (and won't be able to pay this off until I get paid at the end of the month) and have been going over it by about this for the last 6 months due to an original mismanagement 6 months ago, followed by a HUGE charge form HSBC, which i couldn't afford, which caused me to have to go over the next month, and get another huge charge etc. etc. I know this was very stupid, but i wasnt expecting to have to move so soon, and though i'd get things sorted before i had to rely on my credit rating again.

 

I've just rung HSBC, and they told me that going over the overdraft limit damages my credit rating - which I didnt think it did..? now i'm worried I'll fail the credit score and wont get the flat I need.

 

Could anyone tell me if HSBC are right please?

[Jamesx81x]

An overdraft is agreed by the bank so it is perfectly ok to use it. As long as you stay within the agreed limit then it shows on your file as a positive entry.

 

It is negative if you go over your limit and will be recorded on your file.

[GetYourHandsOfMyStack]

hi james - cheers for that. do you know if its just a minor offence, or if it'll seriously affect my rating? i have a loan and credit cards which i pay off every month, which I guess would be a positive - are these likely to offset this?

[lancslucy]

I was credit checked by a lettings agency about 18m ago. At the time, they explained that they were seeking to ascertain I had no adverse info, eg CCJs & defaults, rather than to credit score me or assess my credit worthiness.

 

Do you know which CRA the lettings agency will use? They should tell you this if you ask them. Have you checked your CRA file? I would suggest doing so - it will show if your o/d info has been recorded.

 

BTW not all banks report to all CRAs, and some report varying amounts of detail, so you may be lucky!

[GetYourHandsOfMyStack]

Cheers Lucy - the referencing Agency is Maras, apparently its the most commonly used. Am glad you said its prob just for defaults and ccj - havent got any of those so will be ok i guess, was just stressing as total agency fees were £450 - and if you dont pass the check you loose all the money - nice eh?!

[lancslucy]

Oh I well remember the ridiculous amount of money I had to pay up front just to even be considered as a tenant!

 

From what I know, Maras will perform a search with a CRA & take up references for you, and advise the landlord/aganecy from there as to your suitability as a tenant.

 

I would still advise finding out which CRA Maras search at, and checking your file for this CRA - it's worth knowing even without the Maras check looming, if there's any risk of your little o/d trouble appearing on there. Be prepared and all that!

 

Good luck with Maras/Lettings Agency - hope you settle in to your new home soon!