Arranged overdraft
Cards & borrowingAn overdraft limit agreed in advance with your bank.
Overview
Arranged overdrafts are usually cheaper than unarranged overdrafts.
Using most of your limit can still affect affordability.
Why it matters
- It provides short-term flexibility for cash flow.
- Costs are usually clearer than unarranged overdrafts.
- Heavy use can affect credit assessments.
FAQs
Does an arranged overdraft affect my credit score?
It can if the overdraft is reported and used heavily.
Can I increase my arranged overdraft?
You can request an increase, but approval depends on your bank.
Related terms
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