Overdraft stress

[ToPierceOrNotToPierce]

I’ve got a really anxious personality so please don’t flame me for this because I am aware that what I’m worried about isn’t the same as having 3 maxed out credit cards. BUT - I’ve been using my overdraft to make
up the shortfall for the last 2 years. Everything has risen so much, wages haven’t, I’m bloody struggling. So I’ve been about £700 into my £1500 overdraft for the last 2years. All my money goes into the joint account to help pay the mortgage etc. At some point I’m going to need to take out a loan because my bathroom is literally falling apart amongst other things that I won’t bore you with and it’s keeping me awake that my credit score must be terrible because I’m permanently in an overdraft by quite a lot every month. I don’t have a credit card. Please can someone tell me if this is really bad? 🫣
me awake at night

Being in your overdraft will impact your credit score as it's debt, but only a credit core agency can tell you by how much. You can sign up to clearscore for free.

I would register on the MSE forum https://forums.moneysavingexpert.com/categories/debt-free-wannabe make a post with a Statement of affairs and you will get some fantastic advice

https://www.moneysavingexpert.com/loans/debt-help-plan/

I’ve been in my overdraft since 3 days after I opened my student bank account in 1996

if it’s an agreed overdraft then I’m pretty sure it has little impact on your credit rating. I’ve not ever struggled to get credit or a mortgage. In fact I think banks like it cos they charge fees and make money from you

So it's not that you're needing that £700 each month, it's that you needed it 2 years ago and have never managed to put it back. Can you try and reduce it by £50 a month? Even £20 a month? And as soon as you can reduce your overdraft facility so you're not depending on it.

I was in my overdraft for years, then Nationwide put me on a plan to force me to reduce it by £50 a month, I was so happy when I finally got rid of the overdraft. Speak to your bank.

I’m not going OVER the overdraft but I’m always in it…. Will this count against me if I apply for a loan etc? 🫣

Have you checked your credit score?

I'm not sure how it would affect you but it's definitely not good being in the red for 2 years.

I live in my overdraft / credit cards etc etc - my credit score is excellent, why don't you check yours? Using credit effectively (always repaying at least min, not using over 70% of limit, probably some other clever ideas other MNers will have) is good for your credit score as far as I have always understood

I work for a well known Retail bank. This shouldn't affect your credit score, we will text you and write to you etc to remind you of any interest or fees you're paying but essentially as long as you are in an arranged overdraft and it's not more than your monthly income it will have no affect on your credit score. In fact it can help
it in some cases as it shows responsible borrowing (ie staying within an agreed limit) If you are applying for a loan to get a new kitchen why don't you add on a little more to clear your overdraft? The interest rate on most overdrafts is 39%, a home improvement loan would be lower. You should be able to check your credit score on your banking app and it will tell you what's affecting it.

You mention a joint account - why are you solely paying for the bathroom - time to discuss your finances with your partner?