Unarranged overdraft
Cards & borrowingGoing overdrawn without an agreed overdraft limit.
Overview
Unarranged overdrafts often have higher fees or charges.
They can indicate financial stress to lenders.
Why it matters
- It can be expensive and hard to manage.
- It may affect affordability checks.
- Repeated use can harm your credit profile.
FAQs
Does an unarranged overdraft affect my score?
It can if reported or if it leads to missed payments or fees.
How can I avoid unarranged overdrafts?
Set balance alerts, keep a buffer, or request an arranged overdraft.
Related terms
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