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Advice on checking account credit line use

is it a good practice to use the checking account overdraft protection credit line in full always?


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Not sure I completely understand your question.  If you mean should you take the full credit line that they offer you for overdraft then the answer is no. You should NOT use a credit line as over draft at all.  You should put some of your money in an account that is sperate, like a savigns account.  Then have your bank use that as your overdraft protection.  The last thing you need when you run out of money in your account is to go into debt and have to pay interest on it. 

If you are asking if you should use your overdraft protection like having a credit card, the answer is again no. Credit cards are stupid, you should just pay cash or debit.  Stupid to pay interest on things you can't afford anyway.  Just put some cash in account and use that as overdraft. 

If that doesn't answer your qestion feel free to explain it in more detail.Internet Banking

Posted 2009-03-01T00:40:44Z
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KAL
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Dress for the job you want and not the job you have; because life is what you make it to be.

Some banks allow you to have the ODP Line of credit. This is for the purpose of only overdrafts. you can not pull from it when you want to but only when the account will receive a fee. Yes, you should always have a line of credit attached to your checking account. Not everyone has the funds available to put into savings accounts. Some banks allow you to attach a home equity line or personal line as ODP. This is not the same as the first one I mentioned. These two will allow you to pull at anytime without overdrawing your account. The standard use to be the savings account, but then you run into Federal regulations that prohibits the amount of transfer that can occur coming out of a savings account in one statement cycle. This is Reg. D You are allowed 6 out going transfers from a savings account during that statement cycle. these transactions in online transfers, telephone transfers, and pre-authorized debits. The ODP would fall under the pre-authorized debits category. Anyways, if you overdraw by 50.00 the most common ODP interest rate is 15.49% and it is accrued daily. you are looking at a few cents per day.
Posted 2009-03-01T14:42:24Z
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3 answers
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Thank you guys ( CarlS, Kal) for the response to my question.
Posted 2009-03-02T17:31:26Z
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3 answers
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Thank you guys ( CarlS, Kal) for the response to my question.
Posted 2009-03-02T17:31:33Z
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ped
1 answer

stronger

is it safe enough? my account was stealed online!
Posted 2009-04-10T12:20:24Z
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