Credit Check for Re-Applying for Overdraft


#1

Hi all

If I decided to cancel my starling overdraft all together and then decided a week or two later I wanted it back would another credit search be done?


#2

I would assume so


#3

As your kind of taking a ‘new line of credit’ out I would also say yes it would be another credit check, as credit scores fluctuate. So I would assume starling would have to re-credit check you to approve you again for the overdraft


#4

Not sure this is entirely true

I have been playing with my credit level and on checking my credit score pages cannot see any fluctuation or additional searches


#5

But that’s me just simply moving the overdraft slider up and down


#6

Mostly agree with @MIROW and @scottgale20, I would think you are closing a Credit Account and then opening a new Credit Account, which may or may not cause another Credit Search (because one is done at account opening regardless of if you have a Overdraft or not), but would appear as a new Account on your credit score and leave the ‘closed’ Account in your history for several years (6 years according to CallCredit and Equifax).

If you think you might do this it might be better to use the Overdraft slider rather than cancelling it altogether? @CLIVE_HADLEY this wouldn’t affect your Credit Score I would think, it’s an internal feature of Starling. Also, companies only tend to update the credit agencies once a month, so unless you’ve done this over several months, it definitely wouldn’t show up.


#7

Agree with the monthly check span

I have my credit checked monthly via the MSE credit club

However I still believe that onece you are allocated a set amount of overdraft the slider movement remains an internal issue with Starling and you will regardless be seen as having the potential to borrow the full amount

Maybe a Starling rep will verify for us


#8

@JamesPratley

Can one of the team take a look at this query please?


#9

Thanks Graham

A good one for answering by Starling Direct


#10

I get the impression if I slide it to zero, you are cancelling the overdraft…


#11

Not sure here because you can simply slide it back and you then have a full overdraft available


#12

I’m asking as when I go to remortgage I want to reduce the number of credit accounts and first port of call is my overdraft.

If m going to re checked again after the remortgage it’s another search on my credit file to contend with


#13

On opening the account we do a soft credit check, then a hard credit check if you accept the overdraft. After that, you’re free to move the slider around without incurring any further checks, but we do send a monthly report to the bureaus with your current limit (which may be £0), and how much your are actually borrowing.

Thank for for raising this with us, we agree it could be a little clearer in the app and have added it to our list to make it clearer. Hope that helps!


Overdrafts With Starling 💷
#14

Thank you James

All understood


#15

@JamesPratley could you clarify something please? It looks like moving the slider to zero actually cancels the overdraft facility, so presumably this means you would need to be credit checked again if you want to reinstate your overdraft facility. Is that correct?