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Overdraft question

newstran
newstran Posts: 10 Forumite
in Loans
Hello there, hope all is well.

I'm considering extending an overdraft, but keep getting told about 'An indicative total charge for credit for this facility'

Can anyone explains what this means as I'm not 100% - does it come out straight away?

Comments

  • DCFC79
    DCFC79 Posts: 40,610 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Why do you want to extend your OD ?
  • DevCoder
    DevCoder Posts: 3,361 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    newstran wrote: »
    Hello there, hope all is well.

    I'm considering extending an overdraft, but keep getting told about 'An indicative total charge for credit for this facility'

    Can anyone explains what this means as I'm not 100% - does it come out straight away?

    Lenders have to give information about how much a credit facility would cost if utilised.

    So whatever they are stating is what it would cost you over a year (normally) if you utilised the credit line.

    Some lenders have a certain portion of a credit line interest free and then the rest charged at this indicative rate.
This discussion has been closed.
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