Using an overdraft could affect your credit score if your account remains inside the overdraft limit for long periods and you don’t pay it back. However, if you pay off your overdraft regularly, this could actually help to improve your credit rating.
When you apply for an overdraft, or an increase to your existing overdraft, we do carry out a credit check which will be recorded on your credit file and could have an impact. Before applying, we recommend you use our eligibility checker to find out if you’re likely to be offered an overdraft. This check will be recorded on your credit file but will not have any impact.
To find out more about credit scoring, read our credit scoring guide.
If you’re worried about your credit score, or your finances in general, you can schedule a financial health check with us.