An overdraft line of credit is a loan attached to your checking account. Instead of bouncing checks and paying large fees, you can borrow a few bucks and pay interest. When you spend all of the money in your checking account, you start borrowing against your overdraft line of credit. Find out how overdraft lines of credit work.
Related Articles
- Overdraft Line of Credit - How an Overdraft Line of Credit Works
- Overdraft Protection Plans - How They Work - Minimizing Overdraft Fees on C...
- Overdraft Protection Definition - What is Overdraft Protection
- Overdraft Protection - Personal Finance in Your 20s and 30s
- Credit Reports and Bank Accounts - How the Two are Related
Explore Banking / Loans
©2012 About.com. All rights reserved.
A part of The New York Times Company.
R U Serious?
All Banks are in LOVE with overdraft fees. Just another, in a long line of many “Garbage Fees” that make $$$, and lots of it. Any Bank’s P&L will show “Revenue from Non-Interest Bearing “Investments.” Just another opportunity to charge a Garbage Fee. Ulike income from “some loans” based on FED borrowing, Garbage Fees are obtained, on the Bank’s part, at about $0.00 cost. Sound’s like 100% Gross Margin to me. Take into fact that checking account deposits (DDA’s) from consumers and biz’s give the Bank then equivalent of free inventory…..
WHAT A LIFE! FREE INVENTORY + GARBAGE FEES = BIG $$$
Banking behavior ENCOURAGES overdrafts, then provide Overdraft Protection LOC’s as an “alternative.” Gimme a break, wud ya? “Some things are made sel-evident.” Accountability2Bsure