Overdraft question

agent13

Hello

I have been offered an overdraft. I want to take it, as a buffer, however, i am unsure, if i take this overdraft, if i will be charged anything for it.

I still have funds in my account, and i rarly go near the OD limit i have at the moment, however, with funds getting tight, i might need to.

So if i have this overdraft, if i do not touch it atall, will i be charged for it?

Crown

Hi, Welcome to MSE,

Normally you would only be charged a percentage of the balance you used. If you do not use it you should not be charged.

Can you tell us who the lender is and what type of account you hold with them? To be honest it would be easier just to give them a call and check this yourself as what is normal for one seems to be totally different from another.

Also if you are getting a overdraft facility remember that even though the balance will show that money is available in your account it is not your money and if used will obviously run upa debt. I now mainly frequent the Debt Wannabe forums and I hope that you take care with the OD facility. Many of he people who got into debt started by just taking a OD and it can easily spiral.

Good luck with it

agent13

Hi

It's the Halifax, and i hold a current account.

Thanks

Mark7799

On the other hand, if you accidentally stray over then any charges and/or interest are likely to be less if you have an arranged overdraft than if you don't.