What to Do If You Go Overdrawn Without an Overdraft
Last updated: 3 August 2025
Step 1: Check Your Bank Account Immediately
Log in to your banking app or online banking to confirm how far overdrawn you are and what caused it. Look for pending transactions or recent charges that may have pushed you into the red.
Step 2: Transfer Money to Cover the Overdraft
If possible, transfer money into the account right away to bring your balance back above zero. This helps reduce or avoid fees and shows your bank that you're dealing with the issue promptly.
Step 3: Understand the Fees and Charges
Unlike authorised overdrafts, going into an unarranged overdraft can result in higher interest charges or fixed daily fees. Some banks offer a buffer (e.g. £10–£15) before charging, but this varies.
- Check your bank’s overdraft policy (usually found on their website)
- Look for any alerts or messages about fees in your app
- Review your bank’s terms to see if you qualify for a grace period
Step 4: Contact Your Bank If You’re Struggling
If you can't immediately clear the overdraft, contact your bank. They may be able to temporarily freeze charges, offer a repayment plan, or convert it into an arranged overdraft with lower fees.
Step 5: Monitor Your Credit Report
While a short-term unarranged overdraft won’t always appear on your credit file, prolonged or repeated issues might. It’s worth checking your credit report to make sure no negative marks have been added.
How to Avoid It Happening Again
- Set up low-balance alerts on your banking app
- Keep a small buffer in your account for unexpected payments
- Use budgeting tools or apps to track upcoming bills
- Request a small arranged overdraft as a safety net