topic Re: Overdraft Protection in Personal Finance

Overdraft Protection

Anonymous — Fri, 26 Apr 2019 16:00:25 GMT

I always pay my bills, so I have never turned on auto pay for my credit cards because I don't want to overdraft my checking account, but I do like the added security of having it on. I don't know the future, and I am not perfect, so I don't want to accidentally miss a payment due date by any amount of time for some unknown reason. It would be very hard since I turn on alerts via text and email, which makes it unlikely I would even need it, but I would enjoy the added security of having it on. So technically I could do it with my wells fargo credit card, but I see a line of credit for over draft protection mentioned occasionally. What banks and/or credit unions offer line of credit specifically for overdraft protection?

Re: Overdraft Protection

LakeLife — Fri, 26 Apr 2019 18:57:40 GMT

@Anonymous wrote:
I always pay my bills, so I have never turned on auto pay for my credit cards because I don't want to overdraft my checking account, but I do like the added security of having it on. I don't know the future, and I am not perfect, so I don't want to accidentally miss a payment due date by any amount of time for some unknown reason. It would be very hard since I turn on alerts via text and email, which makes it unlikely I would even need it, but I would enjoy the added security of having it on. So technically I could do it with my wells fargo credit card, but I see a line of credit for over draft protection mentioned occasionally. What banks and/or credit unions offer line of credit specifically for overdraft protection?

I think that option is becoming more and more rare. Your best bet with just about any bank/CU is to open a savings account with the same back you have your checking with and then link that savings for overdraft protection. I always have something in short term savings, so it's simple enough.

Re: Overdraft Protection

Anonymous — Fri, 26 Apr 2019 19:52:03 GMT

Navy Federal has it.
USAA sort of has it.
You would setup one of your USAA credit cards as overdraft line of credit for your checking account. My memory is that in that case money comes out increments of $100 so can be a little extra interest but still save a lot of stress knowing checks are covered.

Re: Overdraft Protection

Anonymous — Fri, 26 Apr 2019 21:32:56 GMT

DCU allows you to set your credit card as overdraft protection with no fee vs the $5 fee if they pay an overdraft from your savings.

A number of financial institutions are starting to offer the ability to use your credit card as overdraft protection but at your cash advance APR which tends to be much higher with banks. DCU is kind of unique in that they don’t charge a fee, they don’t hike your APR, and you can use up to the entire limit of the card instead of a smaller 20-30% like most banks and CUs limit cash advances to.

My bank has a cash reserve PLOC that’s $20 a year just to have it.

Re: Overdraft Protection

Anonymous — Fri, 26 Apr 2019 22:14:32 GMT

US Bank offers a reserve line that is only used for overdraft protection. You can also use any of their credit cards or their premier line for overdraft protection.

Re: Overdraft Protection

Anonymous — Sun, 28 Apr 2019 12:22:33 GMT

@LakeLife wrote:
@Anonymous wrote:
I always pay my bills, so I have never turned on auto pay for my credit cards because I don't want to overdraft my checking account, but I do like the added security of having it on. I don't know the future, and I am not perfect, so I don't want to accidentally miss a payment due date by any amount of time for some unknown reason. It would be very hard since I turn on alerts via text and email, which makes it unlikely I would even need it, but I would enjoy the added security of having it on. So technically I could do it with my wells fargo credit card, but I see a line of credit for over draft protection mentioned occasionally. What banks and/or credit unions offer line of credit specifically for overdraft protection?
I think that option is becoming more and more rare. Your best bet with just about any bank/CU is to open a savings account with the same back you have your checking with and then link that savings for overdraft protection. I always have something in short term savings, so it's simple enough.

I have this setup currently, but I don't ever have to use it. I want auto pay turned on, but if I were to do that I would not use my savings account as over draft protection. The odds of me over drafting are pretty low, which is why I would like a line of credit for it, or something else if there is another way.

Re: Overdraft Protection

GApeachy — Sun, 28 Apr 2019 12:30:04 GMT

OOPS (edit) read your post wrong OP...sorry, was thinking it was about banks offering ODP on accts. So disregard.

Re: Overdraft Protection

Anonymous — Sun, 28 Apr 2019 12:30:25 GMT

@Anonymous wrote:
Navy Federal has it.
USAA sort of has it.
You would setup one of your USAA credit cards as overdraft line of credit for your checking account. My memory is that in that case money comes out increments of $100 so can be a little extra interest but still save a lot of stress knowing checks are covered.

Is that similar to the wells fargo option? I haven't looked into it, so I am not sure what the terms of it are. I don't think I can use usaa though, and I could probably use navy federal, I just haven't looked into that one yet.

Re: Overdraft Protection

Anonymous — Sun, 28 Apr 2019 12:43:37 GMT

@Anonymous wrote:
DCU allows you to set your credit card as overdraft protection with no fee vs the $5 fee if they pay an overdraft from your savings.

Is a fee normal for over draft protection? I clearly need to look into my over draft protection I have through wells fargo, I have never actually read about it, but I didn't think for a second there would be any fee since it is linked to my savings. Is no fee for linking a credit card as over draft protection standard, or do most charge a fee?

A number of financial institutions are starting to offer the ability to use your credit card as overdraft protection but at your cash advance APR which tends to be much higher with banks. DCU is kind of unique in that they don’t charge a fee, they don’t hike your APR, and you can use up to the entire limit of the card instead of a smaller 20-30% like most banks and CUs limit cash advances to.

My bank has a cash reserve PLOC that’s $20 a year just to have it.

I believe my bank has that as well, but it is $25 a year I believe. I haven't actually looked into that option since I am moving away from wells fargo.

Re: Overdraft Protection

Anonymous — Sun, 28 Apr 2019 12:49:50 GMT

@Anonymous wrote:
US Bank offers a reserve line that is only used for overdraft protection. You can also use any of their credit cards or their premier line for overdraft protection.

I have been looking into this bank recently to transfer my direct deposit to. So there are three ways to have over draft protection with us bank, do any of them have a fee? (I am going to go try and find that information but just in case you know.)

Re: Overdraft Protection

Anonymous — Sun, 28 Apr 2019 13:38:58 GMT

@Anonymous wrote:
@Anonymous wrote:
US Bank offers a reserve line that is only used for overdraft protection. You can also use any of their credit cards or their premier line for overdraft protection.
I have been looking into this bank recently to transfer my direct deposit to. So there are three ways to have over draft protection with us bank, do any of them have a fee? (I am going to go try and find that information but just in case you know.)

I have the gold checking with US Bank and it does come with a monthly fee(checking) unless you have a credit product through them. I have the Cash+ and the Premier Line so the monthly checking costs are waived.

Some banks like to charge an annual fee just to have something like this(PLOC) and fortunately US Bank does not charge you. Without going to check, I think if I flopped a check then they would charge me $7.50 per overdraft which is certainly better than what the normal charges would be from banks. That check will be paid out and the balance would just be moved to whatever overdraft options that I have selected for my account.

The last I checked, the Reserve line had somewhere around a 21% APR, the Premier line is currently 12.5%, and of course the credit card APRs will vary.

So there are no annual fees with my setup but there would be a small cost associated with flopping a check. From my personal experience, credit cards and the Reserve Line are available from day 1 to apply for but the Premier Line I had to wait 6 months to apply.

Re: Overdraft Protection

Anonymous — Sun, 28 Apr 2019 14:20:48 GMT

Overmedicated ... "flopping a check" not heard that before. Flopping fish, well that's a whole 'nother story. As to having access to overdraft protection, yeah I would rather pay that fee than get hit with over drafts that report to the Early Warning Systems and Chex Systems (we hear enough on that where people can not open checking accounts and some using the Experian Boost for banking to increase their score).

Re: Overdraft Protection

Anonymous — Sun, 28 Apr 2019 14:16:53 GMT

@Anonymous wrote:
Overmedicated ... "flopping a check" not heard that before. Flopping fish, well that's a whole 'nother story.

Lol....just my lingo. One thing is certain.....you don't want to be labeled as a check flopper

Re: Overdraft Protection

nax — Sun, 28 Apr 2019 14:35:27 GMT

I have an overdraft with Cap 1 360, used it once maybe 7 years ago because I forgot to transfer money and if I recal they sent me a thretening email that if I used it again they would close my account. Have not made that mistake again!

With my my credit union "Eastman Savings and Loan", I have an overdraft account that I have never touched but I see it when I log in.

Discover Checking - No Clue

Re: Overdraft Protection

Kree — Mon, 29 Apr 2019 15:50:12 GMT

I've got a 500 overdraft protection line of credit with Cap1. I don't know if they offer it though, I had it with Chevy Chase before Cap1 purchased them.

Re: Overdraft Protection

Anonymous — Mon, 06 May 2019 01:27:56 GMT

NFCU offers up to $500 in overdraft protection and charges you a flat fee of $20 for each item that comes through. No more than $60 in one day.