Overdraft Line of Credit
Overdraft Line of Credit Services
As part of our commitment to supporting our members' financial well-being, HEFCU now offers an overdraft line of credit. This feature is designed to cover unexpected expenses by providing access to funds when your account balance falls short. Our goal is to help you avoid the inconvenience and cost of overdraft fees while maintaining your financial stability. Enjoy the assurance of knowing you have a safety net in place with our competitive rates and straightforward terms.
Why Should You Have an Overdraft Line of Credit?
Overdraft Line of Credit Benefits
Having an overdraft line of credit can provide a financial safety net, offering peace of mind in times of unexpected expenses or cash flow shortages. It allows individuals to cover urgent payments without the stress of insufficient funds, thereby avoiding costly overdraft fees and potential damage to their credit score.
Without an Overdraft Line
Without an overdraft line of credit, individuals may face the inconvenience of declined transactions and the embarrassment of bounced checks. This lack of financial cushion can lead to missed payment deadlines, resulting in late fees and a negative impact on one's financial reputation.
Disclaimers
Overdraft Line of Credit serves as a source for your HEFCU checking account to protect against overdrafts. If your account is overdrawn, HEFCU will automatically transfer the necessary funds from your Overdraft Line of Credit to cover the overdraft, as long as there is sufficient credit available. You will only incur interest charges on the amount of the credit line used. This interest, depending on the amount advanced, is lower than our standard overdraft fee. The Overdraft Line of Credit is a variable rate credit line, based upon Prime Rate plus a margin depending on credit score. The rate will change with any changes to Prime Rate. Please refer to the Overdraft Line of Credit disclosure for more details.
