@Creditaddict wrote:
@DeeBee78 wrote:
@red259 wrote:Everytime I sign into my bank account it asks me if I want a credit line in order to avoid bounced checks etc. If I check yes to this will it result in a HP? Also, does this show up on my credit report as a line of credit similiar to a credit card?
Everyone needs to stop saying it won't result in a HP . It depends on the bank.
Capital One 360 does a HP when applying for an overdraft LOC, and every time you request a CLI. Their Overdraft LOC does not show up on credit reports.
i think when op stated that this is actually just permission to pay transactions that will make you negative vs an overdraft line means it won't be a hp because it's not an actual account, it's the disclosure they are required for you to agree before charging you $34 for using your debit card when your checking account is empty.
If I miss understood that, then im confused again!
Yea, I think this is what it is. Just the disclosure and authorization to pay an overdraft and zing me with the interest.
;
@DeeBee78 wrote:
@red259 wrote:
@Creditaddict wrote:
@DeeBee78 wrote:
@red259 wrote:Everytime I sign into my bank account it asks me if I want a credit line in order to avoid bounced checks etc. If I check yes to this will it result in a HP? Also, does this show up on my credit report as a line of credit similiar to a credit card?
Everyone needs to stop saying it won't result in a HP . It depends on the bank.
Capital One 360 does a HP when applying for an overdraft LOC, and every time you request a CLI. Their Overdraft LOC does not show up on credit reports.
i think when op stated that this is actually just permission to pay transactions that will make you negative vs an overdraft line means it won't be a hp because it's not an actual account, it's the disclosure they are required for you to agree before charging you $34 for using your debit card when your checking account is empty.
If I miss understood that, then im confused again!
Yea, I think this is what it is. Just the disclosure and authorization to pay an overdraft and zing me with the interest.
You guys are confusing each other - it's not the same thing. Opting into overdraft protection will result in an exorbiant $25+ one-time fee per transaction. Opting into an overdraft line of credit is when they'll charge you interest for everything that takes you below a $0 balance.
Overdraft protection isn't a line of credit, so no HP or SP.
Overdraft line of credit could be a HP or SP.
Of course now when I log in it doesn't pop up when it has been popping up for the last several months. I can't find the wording they used. I know for a fact what I had with citibank was an overdraft line of credit in the sense that I was charged interest. I can't remember the wording that my main bank used. Maybe the offer will pop up against later and I can cut and paste it.
Well just looked further into my bank website. I think what they offered was something called overdraft services which is if you overdraft you have to pay a flat fee and then an additional fee if you stay negative more than 10 days (this appears to be the default one). They also have other products called overdraft protection one of which is a line of credit and you get hit with the interest as well as a flat charge each time you do it.
@Anonymous wrote:
@DeeBee78 wrote:
@red259 wrote:Everytime I sign into my bank account it asks me if I want a credit line in order to avoid bounced checks etc. If I check yes to this will it result in a HP? Also, does this show up on my credit report as a line of credit similiar to a credit card?
Everyone needs to stop saying it won't result in a HP . It depends on the bank.
Capital One 360 does a HP when applying for an overdraft LOC, and every time you request a CLI. Their Overdraft LOC does not show up on credit reports.
Everyone? There were three people who had added to this discussion before you posted. One person said it depends on the bank, one said they didn't think that type would result in a HP, the third said that it did at their bank. "Everyone" isn't saying that it won't be a HP.
My CU has what is called an overdraft LOC, which is really just an unsecured line of credit. You can just transfer money into your checking account, not even for overdraft. It has a relatively reasonable interest rate (low teens) and it reports to EXP, as a LOC. The CU required a hard pull to open the checking account, so it wasn't a separate HP. However it would be another HP if it was applied for at a later date.
