# LLoyds Overdraft



## brobbo (Oct 19, 2007)

Hi everyone,
im going to try to sound the least nieve as possible here, im 21 got a perfect credit rating since i was 18 never slipped up once, well a few days ago ive bought something online and for some reason the company took the amount twice, now for me this put a spanner in the works and really messed up my available balance. i rung lloyds tsb and was offered a planned overdraft of £2k.....

my main question is,do i have to pay the overdraft if i don't use it? ie always in credit?
i was under the impression that you ONLY pay for what you borrow ie £300 into overdraft so you only pay interest on the £300, am i right?

why ive been offered £2k is beyond me but luckily the company have refunded the money.

sorry to sound so dumb but ive never really needed to know about overdrafts 

all help is much appreciated

Bradley


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## empsburna (Apr 5, 2006)

You will only pay the interest on the amount you borrow, not on the amount you are allowed unless there is an overdraft fee. I would approach the company and ask them to cover any costs you have incurred.


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## brobbo (Oct 19, 2007)

Midlands Detailing said:


> You will only pay the interest on the amount you borrow, not on the amount you are allowed unless there is an overdraft fee. I would approach the company and ask them to cover any costs you have incurred.


well it was incredibly lucky that it happened this week and not next as ive got no direct debits this week and they all seem to come out at the end of the month. 4 working days to return my money is rediculous.

so just to clarify...say for example i have a 2k overdraft and i am £750 in credit, i dont have to pay a penny?

I dont want to think of it as my money more as a safety net if this was to happen again

thanks


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## DiscoDriver (Oct 27, 2009)

brobbo said:


> so just to clarify...say for example i have a 2k overdraft and i am £750 in credit, i dont have to pay a penny?


Correct.

If I were you, I would take out a credit card for any big online purchases like you've made as you get a lot of protection should things go wobbly like they did here. I'm not advocating running up debts on the card, just pay for big over-£100 purchases using it (and pay off balance in full each month).


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## brobbo (Oct 19, 2007)

DiscoDriver said:


> Correct.
> 
> If I were you, I would take out a credit card for any big online purchases like you've made as you get a lot of protection should things go wobbly like they did here. I'm not advocating running up debts on the card, just pay for big over-£100 purchases using it (and pay off balance in full each month).


i do with all my spending mate,then when my statement comes through i just pay it off. it has come in useful as ive needed to do a chargeback before and it was sorted within a week.
the main reason i wanted the overddraft was incase somethings happens and i go into the red, mainly for peace of mind

thanks
brad


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## PaulN (Jan 17, 2008)

You dont pay anything for not using it but there 2 type of overdrafts. 

One is a one off yearly payment say £40 and you only get charged interest on the amount borrowed.

The Second has no charge each year but its a flat £1 per day while you use the overdraft plus i think interest!!!!

Use it for 40 days and guess what.......

Have it because an overdraft can help you out but check the charges..

Cheers

PaulN


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## Adam D (Nov 3, 2009)

Check with Lloyds regarding the small print about your overdraft charges.

Most banks only charge interest on the amount overdrawn.

However, some products have changed to a flat daily fee as PaulN as said above.


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## AndyParker (Feb 20, 2010)

like others have said - interest will only be paid on any part of the overdraft you use.

You will probably find that you would pay an arrangement fee for the overdraft to be set up for 12 months whether you end up using it or not. You'd then probably pay that arrangement fee every 12 months if you renew - as with all these things though only way to know is read the small print


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