Penfed Check overdraft Limit ?

[NEEDCREDITADVISE]

What are some of the limits one have on their overdraft check loan ? mine is currently $500.00 and I'm thinking of asking for more available credit on the overdraft  please let me know if your's is higher ,,,,,,,,,,,,,,,,,,,,

[jmbfl]

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@NEEDCREDITADVISE wrote:
What are some of the limits one have on their overdraft check loan ? mine is currently $500.00 and I'm thinking of asking for more available credit on the overdraft  please let me know if your's is higher ,,,,,,,,,,,,,,,,,,,,

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When I opened the checking account PenFed automatically opened an overdraft line for me that I did not ask for. I called them and asked them why they did it without my request and if it would report as a seperate revolving TL. They said a) they were sorry and they should not have done it and b) it does report as a separate revolving TL. Since you have to keep a balance of at least $500 in the checking account to keep it free I felt that I had a sufficient buffer against OD checks being returned. I also could not see any reason to saddle myself with a $500 revolving TL reporting on my CBR's. So I told them to close the OD account and remove it from my CBR which was done very quickly. Save your $500 credit for something you can use. You would be better off adding it to your CC's CL.

[NEEDCREDITADVISE]

Thanks ,,,I'll be calling them right away I've had the TL for about 6 months so they probably can't remove it from the cb

[Anonymous]

If you don't mind, would you explain exactly what is a Checking Account Line of Credit??

What would it cost to use this line??

Would it not make better sense just to open a savings or money market account and use that for any overdrafts??

Why would they report this line of credit to the credit bureaus if you have not used it???

Hope I am not stepping in private territory.

[Anonymous]

If you overdraft you will borrow money from the overdraft line and pay intrest on it vs paying a $30+ nsf\overdraft fee . The intrest is usually only a few cents if its paid off within a few weeks so its much cheaper than a normal checking account that charges a fee for overdrafts