Everything you need to know on FNB overdraft

An overdraft FNB refers to one of the many credit forms offered by the bank. It is a temporary solution to cash flow problems. It can be defined as the credit or a borrowing facility that is attached to a customer’s cheque account.

Full operation of FNB overdraft

The overdraft allows your cheque account balance to bring in a negative position, but up to a certain allowed or agreed limit. Therefore, this means that it helps to offer you extra funds that come directly from your cheque account.

You will then repay the amount on a monthly basis as you make deposits that come into your account. This includes deductions from sources like your salary. This credit facility is referred to as the FNB gold cheque account overdraft.

Importance of the FNB overdraft

Rather than let your debit orders bounce or paying one month and failing to do so the next one, the FNB overdraft comes in handy when you want to protect your credit record. It will shield you whenever you have insufficient funds in your account.

You can use this facility to make your debt payments and any other forms of payments you need to cover. You will be protected from incurring bank charges on unpaid or returned items.

Managing the Overdraft

Managing the overdraft is of huge importance and should not be neglected. If you maintain consistent payments then you lower your risk rate and stand out as a reliable borrower. There are certain things you could do to ensure you are in good standing with the bank. These include:

  • Having an overdraft limit that will cater to all your needs in case you need to handle an emergency. A good limit prevents issues of repayment challenges.
  • Prior planning helps to set aside money for emergencies.
  • Monthly salary deposit that helps avoid overdraft excesses.
  • Maintain a good credit score by paying all your bills in time.
  • Keep your spending on the low and spend money wisely for major debt and deals

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