Shared BranchesMore Flexible Purchasing Power with an Overdraft Line of Credit
An Overdraft Line of Credit can help you manage your expenses while also safeguarding you from fees in the event your account balance drops below zero. Having a Overdraft LOC with your UFirst accounts can help you maintain financial balance while borrowing what you need from a credit union you trust.
Advantages of an Overdraft Line of Credit
- Immediate access to funds that can help you every day or during emergencies
- Competitive rates based on credit history and account relationship
- Most members will qualify for limits between $500 and $7500 (higher limits may be considered)
- Affordable monthly payments
How Does Overdraft Protection Work?
Your checking account can link to an overdraft line of credit to cover any pending transactions that your current checking account balance can't cover. An overdraft line of credit helps you avoid fees due to insufficient funds, ensuring that your checks don't bounce, your debit card doesn't get denied, and that you don't miss payments.
Without an overdraft line of credit, overspending from your checking account may result in the following actions: - The bank covers the pending transaction but charge you an expensive fee - The pending transaction gets rejected and and the bank charges you a fee for insufficient funds.
The following accounts can be linked to your checking account to create overdraft protection:
- Overdraft line of credit
- Savings account
Do I Need Overdraft Protection?
Overdraft protection provides you with a safeguard in the event of a financial emergency. You can avoid expensive bank fees and always cover pending transactions from your checking account.
Without overdraft protection, your bank might decline pending transactions if there isn't enough money in your checking account. This can cause the following problems:
- Your bank can charge you a fee for having non-sufficient funds.
- The merchant that presented the payment might charge you an additional fee.
- You might not be able to pay for household groceries, rent, bills, and other goods and services.
One of the easiest ways to guarantee pending transactions go through is an overdraft line of credit. This short-term borrowing facility covers pending bank transactions if there is not enough money in your checking account (up to a certain limit). This provides you with peace-of-mind.
It's Better Here
UFirst Credit Union values you. That's why we work so hard to protect your security, your finances, your family and your future. For more information on the benefits of your membership with UFirst, see our Member Services page or visit any of our UFirst branches.