Hi,

I have a £1000 OD limit which I recently reduced from £1500, is it worth reducting it to something like £250 or something as I never need it? Will it help with my credit rating or anything like that in anyway?

I sometimes only go about £10 into my overdraft now and again but transfer money into this current account instantly from a linked savings account if it goes into OD.

thanks

From what I have read here over a period of time if you have a good credit rating and treating this in isolation it makes little difference as far as helping your credit rating.

I take a different approach and say do I 'need it' and if not why not reduce it for 'fraud' + reasons - £750 less at risk if you reduce to £250? That's the reason I reduced the overall amount at risk on my credit cards. If I want to increase for any reason I would just ask and be surprised if there was a problem. In any event the increase would be to get the safety of the CC so if necessary I could pay money into it.

I agree with drumster. Reducing the OD limit is like damage limitation if your card goes missing.

With some banks you can apply for overdrafts online and get instant decisions. If your bank is like this, then it might be better to reduce your overdraft and increase it if necessary.