An arranged overdraft can be useful for short term borrowing. It allows you to go overdrawn up to an agreed limit. The arranged overdraft fee is not applicable to the Student overdraft. An unarranged overdraft is when you spend more money than you have in your current account, without already having an arranged overdraft limit.You can check if you're likely to be accepted for an overdraft using our eligibility tool.
Both arranged and unarranged overdrafts will cost you money in fees, but an unarranged overdraft will cost you more. You can use our cost calculator to see how much an overdraft would cost you to use.
An overdraft is a form of borrowing and is repayable on demand. If you don't pay it back, it could have an impact on your credit score and could result in household bills being rejected.