Checking Account Overdraft Credit accounts?

[Anonymous]

Sorry mods, please move this post if its in the wrong place!

Question: I got a second checking account at Captial One 360. I applied for a line of overdraft credit for $500; they did a hard pull on one of my credit reports.

Yes, the overdraft credit line can only be used for a specific purpose but is this type of credit granted reported to the credit bureaus?

I tried looking this up online but could only find information about people worried about overdraft FEES not overdraft credit.

Anybody have a definitive answer or can intelligently speculate??

[LS2982]

I would think it is. Do you have access to withdrawals on it or is it strictly OD only?

[09Lexie]

I had an account with ING ( closed it last year when Cap 1 took over) anyway, I was offered an OD LOC. what I didn't know was that they would pull my EQ. It did not report to any CBs only the HP. Not a big deal but I didn't need it and wouldn't have said yes - my fault for not asking.

[Anonymous]

Reading the fine print of this overdraft credit account, not only will checks that I can't cover (or ATM withdrawals or purchases made with the debit card) be covered (no overdraft fees/NSF fees - it's treated as a loan and you pay the money back with interest depending on how long you don't pay it back) but I can actually withdraw the money, too.

So if I had zero in the account, because of the overdraft credit account, it would show $500 "available".

I guess I will see down the road if it reports, but was just wondering because IMO another tradeline wouldn't hurt.

[Chris123nTx]

Good question. Just my guess but i would think that it wont. Although they havve supposedly changed or are changing the vantage scores to take more things into account rather than just the typical credit lines, and this seems like something that might be included. With overdraft it seems like it would be similar to just having it tied to a savings account. I personnaly wont do either of those. If i dont have money in my checking account, i would rather be denied at tye point of sale rather than deal with over draft. Just me, ahd just my guess and opinion.

[Anonymous]

@09Lexi

Thanks - I assmume that if yours didn't report then these types of credit don't report either, in general.

And yes, they did do a hard pull on my Equifax file.

[09Lexie]

The LOC had to be paid in full within 30 days from what I remember. Kinda reminded me of NFCU's 'OOPS' feature without the HP!

[Anonymous]

@09Lexi

Heres' what Cap 360 says:

If I’m carrying an outstanding balance on my Overdraft Line of Credit, when and how much will I have to pay?

If your 360 Checking balance is negative at the end of the month, you must make a deposit of at least the minimum payment amount by the last day of the following month. Here’s how to calculate your minimum payment amount:

• If your month end Overdraft Line of Credit balance is over $3333.33 – you need to pay at least 3% of your outstanding balance.
• If your month end Overdraft Line of Credit balance is between $100 and $3333.33 – you need to pay at least $100.
• If your Overdraft Line of Credit balance is less than $100 – you must pay the entire outstanding balance.

We’ll send you a reminder email before your payment is due and additional reminder emails when you miss a payment. When you sign in to capitalone360.com, you’ll also see a message that provides instructions on how to make a payment.

For sure this not something that one wants to drag out longer than a month! LOL But as far as the occassional "ooops" it's good to have probably. But certainly not something to use (or abuse) on a regular basis.