An Overdraft Line of Credit is there to help protect your checking account from overdrafts. An Overdraft Line of Credit gives you the security of writing checks knowing if your account doesn’t have the funds to cover the item at the time it is presented for payment, your Overdraft Line of Credit is there for you. It is the easy, convenient and affordable way to avoid the embarrassment and frustration of bounced checks.
How does an Overdraft Line of Credit work? The Overdraft Line of Credit is linked to your checking account. When funds are not available in your checking account to cover a check, ACH debit, or Bill Payment debit, the Overdraft Line of Credit Loan will automatically advance enough funds (up to your available credit line) to your checking account to cover the shortage amount. Depending on the overdraft amount, the interest you would pay is typically less than the amount of the overdraft fee(s).