Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

Overdraft Alternative Facility

Our overdraft alternative facility allows borrowers to utilise an effective alternative to overdrafts online. By allowing you to drawdown up to £500 easily and securely via our credit facility, traditional overdraft arrangements, the associated charges and interest rates and the hassle involved can all become a thing of the past. At Stepstone Credit, we are authorised by the Financial Conduct authority (FCA) and understand that there are times where you may be caught short financially and need that bit extra to tide you over for a short period of time. 

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Many often turn to traditional short term loans when a form of credit is needed. However, for many people, they simply do not want to take out a potentially expensive payday loan and they either have no arranged overdraft facility to utilise or the associated charges from their provider are too high. This is where a Stepstone loan such as a payday loan alternative or alternative to overdrafts comes in, providing a more favourable form of short term loan for borrowers.


We strongly believe that your financial past and those small misdemeanours shouldn’t dictate your future, so we utilise the latest in bank scrape technology to make our application process as accurate and fair as possible. By securely scraping your last 3 months of financial transactions, we are better able to ensure true affordability, making repayments easier for you.

Stepstone Credit is an FCA Regulated direct lender and our facility allows you to drawdown up to £500, only making repayments on what you actually use. All of our services and your account are easily and securely available online and via the Stepstone mobile app, making it easier than ever to get the credit you need. 

Apply online today with Stepstone Credit, for a true alternative to overdraft facilities, allowing you to drawdown up to £500 as and when you need it.

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How Does an Overdraft Work?

Traditionally, an overdraft works by allowing you to borrow money through your regular, everyday current account with your bank or building society, applying additional interest and charges on top of the overdraft amount as with any short term credit. Overdraft facilities may be requested by the account holder, for their bank to activate ad allow such a facility. These facilities fall into one of two distinct categories: Planned Overdraft and Unplanned Overdraft.

These are often required at times where money is a bit tight and a bit of additional room for manoeuvre is needed, for example, leading up to payday or when an unexpected emergency arises, such as a car breaking down. In such cases, with an overdraft facility in place or available at the very least, your bank or building society will allow you to ‘borrow’ up to a set amount [beyond a balance of £0 in your current account.] 


These funds are accessible through making associated debit [card] payments, bank transfers, cash withdrawals or cheque payments up to an amount determined by the provider of the facility; acting as a form of short term credit.

Planned Overdraft

A planned overdraft, also known as an ‘arranged overdraft,’ is an amount agreed in advance of its use with your account provider. This is something that most providers regularly assess for each holder of accounts with them, ensuring they do not allow for too much to be overdrawn. These facilities will allow the facility of up to a certain amount, with some providers even allowing a threshold up to which there are 0% charges or interest. However, not all accounts have this facility or interest-free approach so it is important to check.

Unplanned Overdraft

An unplanned overdraft, sometimes known as an ‘unarranged overdraft’ is one where there us no overdraft facility agreed prior to its use with the account provider. In these cases, where there has been no prior arrangement, and the account holder goes below £0, withdrawing further funds in one way or another, the facility operates differently to an arranged equivalent. These usually mean there will be higher interest and other additional fees applied to the use of the facility and the borrower’s credit rating may also be affected. Therefore, it is often better to seek an alternative for of short term credit instead such as a Stepstone credit facility.

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An Online Overdraft Alternative

Stepstone Credit allows you to avoid those long and tedious application forms ad processes often used by online lenders of all kinds of short term loans online. Because we use the very latest in encrypted bank scrape technology, with a few quick and simple details, we are able to scrape the last 3 months of your financial transactions through your main account to provide us with a much more accurate picture of your financial position.

Hence, a small infraction such as a County Court Judgement (CCJ) or a one-off default on a loan, do not necessarily exclude you from our facility as it does with other lenders due to their application processes and the generic questions they routinely ask, that simply do not build an accurate picture of prospective borrowers, their affordability and subsequent requirements. This allows our online overdraft alternative to step in and help you out where others can’t. 


Furthermore, the use of this innovative piece of technology means that all lending decisions are much fairer and are based upon your actual affordability, needs and requirement. Positively and innovatively, this also means that the amount provided to you as part of your credit facility is more affordable than with other lenders as your true affordability rather than just your credit history has been accounted for. A small error or mistake in your financial past will therefore not automatically exclude you from a Stepstone Credit facility as it may in the case of a traditional overdraft of short term loan.

An Overdraft Loan with Stepstone

Our overdraft loan facility is distinctly different in nature to payday loans, everyday short term loans and other overdraft alternatives. We allow borrowers to manage all of their account, payments and repayments securely and easily via their online account and the Stepstone mobile app. This means that making repayments is as easy as it can be and drawing down exactly what you ned, when you need it is seamless. 

Rather than punishing you for the odd CCJ or credit faux pas, our processes and procedures assess your overall and true affordability as well as your financial standing to ensure you only borrow what you can reasonably repay, rather than what your credit history dictates. This is particularly important for those such as the ‘pressured professional’ who may simply need that little bit extra from time to time, but cannot delve into an overdraft or additional credit card borrowing. 

Better for your Credit Rating

Because we understand that it is inevitable that future lenders and credit providers will look at your credit rating and because we know that there is some merit as part of the wider picture to your credit history, our loans can help you improve yours for the future. we don’t charge any early repayment fees and because you only repay what you actually draw down from your credit facility as part of an overdraft alternative, it is easier than ever to repay what you use. Furthermore, repaying the loan early is a clear demonstration to future lenders that you are a safer and more responsible borrower.


Rewarding Responsibility

At Stepstone, the more often you utilise our credit facility and repay on time or early, the lower your subsequent interest rates, making our credit facility as friendly and as useful as we can be. This also means that with subsequent interest rates potentially lower each time, in Stepstone Credit, you have a financial partner for your future.

Apply for an Overdraft Alternative Today

Apply online today for a Stepstone Credit overdraft alternative and get yourself on track financially with a credit facility of up to £500. By only having to repay what you actually use of our credit facility, you will be able to take back control of your finances and make your financial future better than you would expect.

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Stepstone Credit is a trading name for Hymarc Ltd and is registered at:
Unit A, Farriers Courtyard, Spelmonden Farm, Spelmonden Road, Goudhurst. TN17 1HE. Authorised and regulated by the Financial Conduct Authority No 683980

Hymarc Limited is a registered Data Controller under the terms of the Data Protection Act 1998 with a registration number of ZA 098144

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk