How does a overdraft work? i hav a lb800 overdraft that i havent used yet, but i

i hav a lb800 overdraft that i havent used yet, but i be wondering how does it work? if i use lb100 ov it this month, do i have to rate it back subsequent month? or can i pay it put a bet on another time?

An overdraft is a form of credit (a loan of sorts). Seeing as you don't know what one is, I am guessing you are untried to bank accounts and that this may be a student narrative.

Most student accounts have overdrafts that are interest free, however standard accounts will charge you for using your overdraft.

What simply happens is that the expediency of the overdraft is like money contained by your account. Whenever you put money into your explanation you will pay bad that amount of your overdraft (if you are in it already).

Example: Your picture is now lb100 "Overdrawn". Think of it as -lb100. If you put lb50 into your statement now, you will individual be lb50 Overdrawn, i.e. -lb50. If you put lb200 in, consequently your account would be lb100.

You can stay within your overdraft as long as you want, but beware of interest or other charges for using it!

Hope this helps!

Normally an overdraft have to be paid posterior when the next credit card bill comes or anything the bank's terms of overdraft repayment. An overdraft is close to a credit extension which will incur interest if it is not paid in good time.

Answers: Your balance will come down when you deposit more money into your report. With an overdraft the balance fluctuates, and no you don't own to pay it put money on as long as you want to pay the interest on the o/d and you don't walk over the 800 limit.

Depends what agreement you own with your hill. I have a irremediable overdraft in place which if I needed to use lb500 (for e.g) consequently I can pay it pay for any time because there is no deadline on my overdraft facility. However, I will be charged interest. Other race may have a impermanent overdraft in place which may singular be in use for 6 months - surrounded by which case any borrowing would own to be paid rear legs before the overdraft expires.
Hope that help.

as soon as money goes into your tale it pays it so say you spend lb200 and next you have lb300 going into your side your balance would be lb100

Basically the edge has allowed you to budge overdrawn on your account by lb800. If read out, you use lb100 of your overdraft in a month, you will compensate interest on the lb100 at the agreed rate with your hill. You do not have to remuneration the lb100 back over the subsequent month. It will be in your own interest not to stir into your overdraft, purely because you will be paying interest on the amount that you use of it. Hope this helps.

Normally its the interest amount that you have to take-home pay back on a regular principle. the principal amount ( 100 ov) can be paid whenever you can.

ok an overdraf is a "small" interim loan by the banks to you i.e. repayable on demand.
how it works is similar to this:

your lb800 O/D
you get compensated lb500
total available for withdrawal lb1300

your lb800 O/D
you spend lb500
total available for subtraction lb300

you spend lb300 out your lb800 O/D
leaving you near lb500 O/D available
YOu then pay packet lb600 into your account
making your be a foil for lb1100
(from that lb600, the bank will automatically put support the lb300 you used to go into O/D hence reducing what you would enjoy say if you be to close the account same morning ie lb300 because the lb800 will always belong to the wall

what ever you do bare surrounded by mind it is repayable on demand and you must remuneration interest on it (unless its got an interest free period) so you should spend it next to great care especially if you know you don't own the funds to cover it if they ask for it back

also O/D are record on your credit report and if you couldn't pay it adjectives at once you'd be paying by agreement with the hill and that too is record, so use cleverly