Overdraft credit status?

[BigPineapple]

If I apply for an overdraft as a scenario, say for 6k and I use 5k. I'm expecting to part pay it back and fully cleared it over 3 months.

The question I have is:
1. Does part pay over 3 months affect my credit rating? (I.e. not paying all within one month)

2. How long does it normally take before it does affecting credit rating with banks with respect to point 1 above?

3. If I don't pay it in the first month, then pay it back from the second month, does that affect the credit rating? (Putting the interest affordability aside).

3. My understanding is that CCR will record borrowing over 500 euro limit. As the limit is approved by bank in the scenario mentioned already. Does this still get recorded everytime I cleared it and re-use the overdraft facility over 500 euro?


Thanks in advance for anyone that can share knowledge in relation to the above.

 

[Palerider]

The overdraft is normally for a set period, in your case three months, once you don't exceed the agreement and have it cleared by expiry then you have fully met your obligations, what happens between zero and €6000 during these three months does not matter.

 

[RedOnion]

No, such a scenario won't affect your credit rating, once it's not part of a pattern of constantly being in short term debt.

If your current account isn't in a credit balance for at least 30 days in the year your credit profile will be damaged. It's much the same as having a credit card that you never pay off.

Your overdraft balance will be recorded every month on CCR record once you are overdrawn, even if it's less than 500. It's the overdraft facility amount that matters.

what happens between zero and €6000 during these three months does not matter.

Correct in the case of 3 months, but most overdrafts are open-ended with an annual review. Being constantly in overdraft is viewed badly from underwriters, even if within agreed limits.