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Glite Dictionary
overdraft credit

overdraft credit

4.1
A bank service that lets you withdraw money when your account does not have enough money
  • noun
  • Specialized
translation icon : crédito de sobregiro
  • The bank charges interest on your overdraft credit if you exceed your account balance.

Examples

  • She arranged an overdraft credit with her bank to avoid rejected payments.

  • Businesses often rely on overdraft credit to manage temporary cash shortages.

  • I applied for overdraft credit to manage my expenses.

  • The bank offers overdraft credits to eligible customers.

  • Many individuals use overdraft credit to prevent their payments from bouncing when funds are low.

  • With overdraft credit, she was able to pay her bills on time despite a temporary cash flow issue.

  • The overdraft credit provided by her bank helped her cover unexpected expenses without any penalties.

Synonyms

check overdraft credit
vsoverdraft credit
  • Specialized
4.7

Money a bank lets you use when a check makes your account go below zero

is bank credit for any withdrawal that makes an account go below zero

Surface Forms

overdraft credit singular
overdraft credits plural

Morphology

overdraft + credit

The meaning is directly compositional: 'overdraft' (money withdrawn beyond available funds) combined with 'credit' (a financial provision) yields a credit facility to cover overdrafts. This noun+noun financial compound follows ordinary English compounding patterns and would be predictable to a B1 learner who knows both constituents.

Etymology

Overdraft credit comes from a simple image: overdraft is when a payment (a 'draft') goes 'over' your account and you spend more than you have. So the bank gives short-term credit to cover that extra amount, which is why overdraft credit means money the bank lends when you withdraw more than your balance.