My bank has granted me a £1000 overdraft. The NatWest adviser said it is much more flexible than a credit card for a few reasons:
– Take cash out of an ATM or transfer money through faster payments without fees, cash advance marks or inflated interest rate.
– No minimum payment – repay what you use on-the-go and any interest is still charged off your overdraft like credit card interest is charged off your credit balance.
– Travel abroad without credit card foreign usage fees. Only pay for conversion unless you are on an excluded account with no international charges.
– Although repayable on demand, stick to your terms, manage your finances responsibly and the chances of an overdraft revoke are minimal.
What do you guys think about NatWest overdrafts vs a credit card like Vanquis? Do you think it would work out cheaper and easier (no cash charge etc.) to use your overdraft limit rather than the latter?
Do you think there is more positives to an overdraft than negatives when compared to subprime credit card interest rates? The bank’s interest rate is so much cheaper.