AIBU to worry about an overdraft?

[Jacckie]

I work in financial services and so credit checks are an important part of background screening, job applications etc.

I've always been careful about paying bills etc. on time and passed all checks so far.

But I just logged in to my internet banking after a week and I noticed that have been between £40-£120 overdrawn for a week. :(

It's been a very busy week and I haven't had time to log in and check my balance, and this overdraft is probably the result of grocery shopping etc. I immediately transferred money from my savings to my current account to get rid of the overdraft and I am in credit now.

I am just wondering how much of an impact something like this has on credit checks for jobs etc.? I have seen in the past that a couple of overdrafts have shown up in my Experian report as those orange dots- does this mean you fail the check?

I'm just so worried about this, would love an expert opinion,

[affafantoosh]

I know nothing about this from the credit check perspective, but I just wanted to suggest that you arrange a small overdraft for your account. I do this so that if I ever make an oversight it doesn't affect my credit rating. It gives me peace of mind :)

[BabyMarmoset]

Was it an unauthorised overdraft? So did you have an overdraft limit?

If so then it will have no impact at all.

If it was unauthorised then I think it will have a small effect, but I have gone over several times and never had credit refused. You will have to pay a charge though.

[Bearbehind]

If it's an arranged overdraft I wouldn't give it a second thought.

If it isn't it is unfortunate but not the end of the world.

Credit checks for jobs are generally to ensure you are responsible and not a likely candidate for black mail- a £120 debt isn't going to unduly concern any one.

Are you looking to change jobs or are your credit checks a condition of your employment?

[Jacckie]

I don't have an official overdraft limit, it just keeps changing each month how much they let me go over.

So don't know if this is authorised or unauthorised then?

I did have to pay a charge though- it was £30 I think.

But could this be serious enough for me to fail an employment screening?

[Bearbehind]

But could this be serious enough for me to fail an employment screening?

Is it a new job or current job?

Either way I'd be tempted to be upfront and explain it- £120 is nothing in the grand scheme of things.

My personal opinion is that credit checks are pointless for jobs anyway- if you have a lot of debt then you clearly haven't been blackmailed/ bunged for doing something untoward- the whole point of being a crook is to make money and if you where already doing that- you wouldn't have any debt!

[Jacckie]

already have passed the credit check for this job- but I am assuming that I might need to either pass another one for promotion, move etc. or for a new job should I decide to move on.

And these things tend to stay on the report for at least 6 years, so that is why I was worried.

[Bearbehind]

Seriously OP- stop stressing- you don't even know if it was unauthorised and even it it was you are hardly Ronnie Biggs!

[PeppermintInfusion]

I had a credit check for a job in FS recently- they never explained what they looked for before when I've had them done so I always worried (I have some debt which I'm chipping away at) but this one told me it is only CCJs, bankruptcy, serious missed payments, massive debts in comparison to earnings/assets etc.

Also, I think it only shows up on credit reports if you miss a full month's payment- I know I've accidentally went over my credit card limit but sorted it out right away and it never showed up.

[mollypup]

job credit checks usually only list defaults plus, any sort of late payment or outstanding balance wouldn't cause a problem.

[mollypup]

and yes late or overdue would only be recorded about 7-10 days after it was required anyway

[Jacckie]

I'm pretty sure I've those yellow dots on my credit file earlier as well for being overdrawn...

So I think it can show up

[ilovepowerhoop]

I'd get an overdraft facility on your account so it is there if you need it

[Jacckie]

I was overdrawn for 4 days- covered the balance on the fifth day

This has happened once before two years ago as well :(

[ilovepowerhoop]

sounds unauthorised so I would ask for an official overdraft limit on the account

[Jacckie]

i don't want to really negotiate an overdraft facility

I will check and make sure it doesn't happen again

I am more worried about the existing overdraft.

[Bearbehind]

How do you hold down a job in the FS industry when you stress about something so insignificant (not to mention avoidable if you had an emergency overdraft facility set up)?

[ilovepowerhoop]

its better to have an authorised overdraft facility and not use it than to have no overdraft facility and go overdrawn and then get charged.

There isnt much you can do about the existing overdraft now.

[ilovepowerhoop]

is there not a mobile phone app you could use to keep you more up to date with your finances?

[Jacckie]

No, there is no app.

But I have already signed up for a service that will alert me via text/email when I am about to be overdrawn so that I can fix it.

[ilovepowerhoop]

I thought most of them had apps these days. Mine does and I can transfer funds between my accounts using it too

[Jacckie]

But as I said, not really looking for advice on how to fix this going forward as I am already on it.

I am more worried about the impact of this existing overdraft on my credit rating and career prospects.

[Jacckie]

well, I don't have an app.

[ilovepowerhoop]

no point in worrying as you cant do anything about it now though. Its not existing now if you have paid money in to cover it

[Bearbehind]

I am more worried about the impact of this existing overdraft on my credit rating and career prospects.

Every employer will have different criteria so there's fuck all you can do about it anyway- the advice to take action to stop it happening again is more use to you than anything else anyway.

[Tomsayer]

I went through the employment checks of a very large bank with frequent late payments on my credit cards, and an overdraft that I use every month