Questions? Answers.
Unarranged Overdraft
Unarranged overdrafts occur when you borrow more than your agreed overdraft limit, or borrow without an agreed limit. Kroo doesn’t provide unarranged overdrafts, so payments will normally be declined if they would create an unarranged overdraft. However there are some scenarios where an ‘offline’ transaction (such as on a flight or travelling via TFL) may be processed. If a payment is processed causing an unarranged overdraft we’ll notify you, and interest is charged at the normal arranged overdraft rate, but you will be asked to make a payment to bring the account back within its limit. In the event of an unarranged overdraft we limit the maximum monthly charge to £15.
Exceeding your arranged overdraft limit or being overdrawn without an arranged limit can impact your credit score, which can make it harder for you to borrow in the future.
Effective Annual Rate (EAR)
EAR stands for effective annual rate. This is equivalent to the total rate of interest you’ll pay if you’re overdrawn for a year. Interest is paid on the amount you’re overdrawn by, as well as on the interest that compounds from being overdrawn. EAR only reflects the effective annual rate of interest and doesn’t include other fees (but you know, we don’t charge those).
Annual Percentage Rate (APR)
APR stands for annual percentage rate, it also includes fees and charges but since we don’t charge anything other than interest, our EAR and APR are the same.
Representative APR is the rate we currently offer to more than half of those who apply for our product, but since we offer only one rate, our representative rate is our actual rate.
EAR and APR (variable)
Variable means we have the right to change the rate, but we’ll give you at least 30 days notice if we increase it.