cancelled overdraft- what does this mean?

[ninnypoo]

Just had a letter from the bank to say that on review of my account my £260 formal overdraft is being removed at the end of the month. I occasionally go into it by about £10-20 at the end of the month (maximum was £100 one month when I had an unanticipated expense-the reason I got the overdraft) but it's always paid off within a week when I get paid again. I've also checked on Experian and my credit score is apparently 976/999.

I'm not too bothered about the overdraft in itself- although it's nice to have for emergencies- but was wondering what this means in terms of my credit score. Do I have bad credit that I can't see? Will this being removed affect my ability to apply for bank accounts in future? I've applied for the £2 statutory credit report but would appreciate any insight while I wait for it to arrive. Thank you!

call your bank and ask

Pop into the bank and ask why it is being removed.

I do think that worrying about your credit score is a little bit premature.

Just means they have noticed you don't use it and cancelled it.

They aren't making any money from you as you don't use it so are withdrawing it. If you ask they will probably let you keep it.

@PersianCatLady

probably, but I'm moving house in a few months time, and also was intending on moving banks, so want to be prepared for anything that might come up!

thanks for advice everyone. will ring the bank tomorrow

Same as above. They don't make any money from you. If you call them, they will try to sell you another product.

They hope that you will keep using a tiny bit of your overdraft each month but they can charge you the much higher unauthorised rates instead.

Repay their crappy behaviour by looking at the 'switch your bank account for an introductory bonus' section on moneysavingexpert and change banks.

probably
I didn't mean to offend you by saying your worry was premature, I just wanted you to know there was nothing to worry about.

You're not a "profit generating customer" because you rarely use it which may be why you're losing it

Your appeal as a customer is actually higher to banks if you're not always paying things off straight away (but not defaulting) and are generating them interest and charges (i.e. profit)