Arcade › Glossary › Borrowing & Credit › Overdraft Borrowing & Credit Overdraft Spending more than your account holds, with the bank covering the gap — for a fee or steep interest. A convenient safety net that quietly becomes one of the most expensive ways to borrow. Want more than a definition? Learn it in Money Basics → Related terms Debt APR Credit Card ← Previous Origination Fee Next → Payday Loan ← All Borrowing & Credit terms