Quick Credit Cards

When I first opened a checking account, I consistently overdrafted because I didn’t understand that my deposits were not immediately available for withdrawal. In fact, at that bank cash deposits made after 2 p.m. were not available until the next business day. Checks had to clear before they were available. So, a rush to the bank to cover a check or debit before it posted was in vain.

Those were the days of checks being returned for non-sufficient funds (NSF), which is a whole lot more expensive than overdraft protection because you’re charged two NSF fees plus returned check fees from the merchant. And you still have to cover the amount of the original transaction. A $1.00 candy bar could end up costing more than $100. I think people who complain about overdraft protection are nuts. Please pay the transaction for me and charge me $36.

Some overdrafts are innocent, you thought you had enough money in your account. Others are part of chronic money mismanagement. Will those checking account slipups hurt your credit score? Not automatically, but they can eventually. Learn how bank overdrafts can affect your credit.

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