What’s the difference between an overdraft and a credit card?

What’s the difference between an overdraft and a credit card?

An overdraft is more of a background facility that kicks in when you’ve exhausted all of your own funds in the account. The interest on an overdraft starts being calculated the day any transactions are made using that line of credit, whereas the credit card has up to 55 days interest free. While the interest rate on an overdraft is higher, there are no annual fees or transfer fees.