Overdraft Protection

Anonymous · ‎04-26-2019

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?

LakeLife · ‎04-26-2019

@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.

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Anonymous · ‎04-26-2019

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.

Anonymous · ‎04-26-2019

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.

Anonymous · ‎04-26-2019

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.

Anonymous · ‎04-28-2019

@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.

GApeachy · ‎04-28-2019

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

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Anonymous · ‎04-28-2019

@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.

Anonymous · ‎04-28-2019

@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.

Anonymous · ‎04-28-2019

@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.)