Overdrafts & Borrowing
Short-term flexibility when you need it. Understand how overdrafts work, what they cost, and how to borrow responsibly — with no surprises.
Types of overdraft
There are two kinds of overdraft — arranged and unarranged. Understand the difference so you can borrow with confidence.
Arranged Overdraft
Agreed in advance with us. You know exactly what you can borrow, and what it costs — no surprises.
- No monthly fee for staying within limit
- Interest charged only on the amount used
- Apply and manage in the app
- Flexible — increase or reduce anytime
Unarranged Overdraft
Happens when you go over your limit without agreeing it first. Costs more — so avoid it where you can.
- Higher interest charged
- Daily fee if you go over
- Can affect your credit score
- Text alerts to warn you early
Other ways to borrow
Overdrafts are great for short-term flexibility, but for bigger amounts or longer terms, we offer other options too.
Personal Loan
Fixed-rate borrowing from £1,000 to £50,000 with predictable monthly repayments.
- Fixed rate — never changes
- 12–84 month terms
- No early repayment fees
- Same-day decision
Credit Cards
Flexible day-to-day borrowing with rewards, cashback, or 0% introductory offers.
- No annual fee
- Up to 24 months 0% interest
- Cashback on purchases
- Freeze in app anytime
Mortgages
Long-term borrowing to buy a home, remortgage, or fund a property investment.
- First-time buyer friendly
- Remortgage options
- Buy-to-let available
- Expert advisor support
Calculate your overdraft cost
See exactly how much an arranged overdraft would cost you. Adjust the amount and days to see the impact.
Overdraft Cost Calculator
Results are estimates only. Actual costs may vary.
Borrow with confidence from Alliance Credit Union
We design our overdrafts to be simple, transparent, and fair. Here's what you'll get when you borrow with us.
- No monthly fee — when you stay within your arranged limit
- Interest only on usage — you pay for what you borrow, nothing more
- Real-time alerts — text and app notifications before you go overdrawn
- Adjust anytime — increase, reduce, or cancel instantly in the app
- No hidden charges — clear, upfront pricing, always
How it works
Getting an arranged overdraft with Alliance Credit Union is simple, quick, and transparent.
Apply in the app
Open your Alliance Credit Union app, go to "Overdrafts", and submit an application in a couple of taps.
Get a decision
Most applications receive an instant decision. We'll tell you exactly what you can borrow.
Set your limit
Choose how much you want — you don't have to use it all. Change it anytime in the app.
Use it when you need
Access the money when you need it. Interest is only charged on the amount you actually use.
Compare our borrowing options
See how overdrafts, personal loans, and credit cards compare side by side.
| Feature | Overdraft | Personal Loan | Credit Card |
|---|---|---|---|
| Typical amount | £50 – £3,000 | £1,000 – £50,000 | £500 – £15,000 |
| Representative APR | 39.9% | From 3.9% | From 21.9% |
| Monthly fee | £0 | £0 | £0 |
| Interest charged on | Amount used daily | Full loan amount | Balance carried |
| Fixed repayments | |||
| Best for | Short-term gaps | Big purchases | Everyday flexibility |
| Early repayment fee | None | None | None |
| Decision time | Instant | Same day | Instant |
Frequently asked questions
Everything you need to know about overdrafts and borrowing with Alliance Credit Union.
Need a little short-term flexibility?
Apply for an arranged overdraft with Alliance Credit Union and get peace of mind with no surprises.