A line of credit can provide you with easy access to funds when you need them most -- to provide overdraft protection, as a source for fast cash or in the event of an emergency -- with the convenience of a one-time application.

How does it work?

When you overdraft your account or on your request, the credit union will advance money into your account in increments of $100. You pay interest on the money you borrow which can be pennies in comparison to the cost of merchant fees for returned payments.

Here's an example:

You ran out of money in your checking account a few days before your next paycheck hit. A few small charges hit your account in the amounts of $2, $3, and $5. The total amount that you were short was $10. With an overdraft line of protection, once your account was overdrawn, $100 would automatically be forwarded into your account to cover your purchases. You would pay interest on the $100 that you borrow at a fixed 13.60%. That would be approximately $0.04 in interest per day. Once your paycheck was deposited into your account two days later, you could make a payment on your line of credit for the $100 you borrowed, plus the $0.08 of interest you would owe.

At other financial institutions you would have been charged a non-sufficient funds fee… at $29 per item (or more)! That is an immediate charge of $87 to cover just $10 in expenses.

Do I need a checking account to have an overdraft line of credit?

No, this service is also available for savings accounts. You would just contact the credit union and ask for money to be transferred from your overdraft line of credit into your savings account to cover various expenses. You can also choose to have the amount as a check made payable to yourself. Members have used this service as an emergency loan, to cover summer or holiday expenses, and as a way to access cash as needed.

How is it different from Courtesy Pay?

Courtesy Pay is sometimes referred to as “Privilege Pay” or “Smart Pay”. With Courtesy Pay a financial institution covers your payments to prevent you from bouncing checks. Instead of paying back what you borrowed plus interest, you have to pay back what you borrowed and pay a fee, sometimes as high as $29.

Do I pay a fee for an overdraft line of credit?

No, this is a free service. You would only pay interest if you need to borrow funds to cover your account.

Easy Payment Options

• The credit union offers a variety of convenient ways to make your payments.
• Automatically take your loan payment from your direct deposit
• Automatic transfers from your account
• Set up scheduled or one-time transfers using our Online Banking
• Make transfers from AnytimeTeller, our 24-hr telephone teller
• Mail in your payment
• In person at the credit union office or through our Night Deposit Box