Using Credit Cards Against Overdrafts
- Banking, Credit Cards, Fees -
If you have a credit card and a checking account with the same bank, you may be able to link the two and use your credit card as protection against any overdrafts. Overdraft fees getting downright ridiculous lately ($30 a pop or more sometimes) and there are sometimes other options than using your credit card, but it’s something to look into. Apparently Wachovia has been offering this since 1992 and by using your credit card you incur a fee of $10 instead of the usual $2309482034923 fee.
The benefit of having overdraft protection in general is that your check will get cashed no matter what, without it you run the risk of having the check bounced and then you’ll have to face even more headaches down the road. If you’re seriously considering protection by way of credit card, investigate the fees associated with the overdraft protection service.
