HelpBudgeting, overdrafts and savingsHow do overdrafts at Monzo work?

How do overdrafts at Monzo work?

We decide if we can offer you an overdraft when you sign-up
When you open a Monzo current account we take a look at your credit file to help us decide whether we can lend to you. This is known as a 'soft search' and will show up on your credit report as a 'quotation search' and 'administration review'. Lenders can't see this information though, so it won't affect your chances of getting credit.

You can turn it on in the app
If we can offer you an overdraft, you can switch it on during the sign-up flow or turn it on later by heading to your Account (your picture in the top left) > then scrolling to see the Overdrafts and Loans section.

And choose your own limit
You can choose how much overdraft you’d like with us within the amount we can offer you. You can change this amount at any time in your app, as well as switch it off entirely.

The fees will come out of your account on the 1st of every month.
The interest will be applied at midnight UTC on the day the payment settled. You'll see these fees accumulate in a feed item stuck to the top of your Home tab, but you'll only be charged the fees on the 1st day of the next month.

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