Current account overdrafts
An overdraft is a form of borrowing attached to your current account, which can act as a short-term safety net, whether you need a little extra to cover unplanned expenses, or just to tide you over.
Managing an ‘arranged’ overdraft carefully, i.e. limiting how much you use it, paying it off regularly and staying within your overdraft limit, can boost your score. Managing it poorly can do the opposite.
Some banks and building societies will allow you to use an ‘unarranged’ overdraft, however your credit score could be negatively impacted as a result.
