Accidents happen to the best of us. That’s why there’s options in place to ensure your bank account is safe from mistakes that could hurt your credit.
When you make a transaction that is more expensive than the dollar amount in your account, that’s an overdraft. Banks charge about $30 -$35 on average every time you overdraft on your account. So, whether you overcharge your account by two cents or $1,000, you can be penalized.
To continue covering transactions and skip the fees from the bank and a possible charge from the merchant you were intending to pay, RMLEFCU offers overdraft protection plans.
Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at Rocky Mountain Law Enforcement Federal Credit Union for a fee or finance charge. These overdraft lines of credit are subject to credit approval.
We recently updated our Courtesy Pay program to provide you with the best overdraft coverage options possible! This offering allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction.
If an overdraft does occur, the $28 Overdraft Fee is the same fee amount that is charged if a check is returned as unpaid, but you avoid the inconvenience and fees that may be charged by merchants for returned checks or ACH items.
Even if you have Overdraft Protection, Courtesy Pay is still available as secondary coverage if the other protection source is exhausted.
Protect Your Credit
Overdraft protection is meant to protect you from accidentally over-spending.
If you’re unable to pay the cost of the overdraft fees, you run the risk of that charge moving to your credit and possibly defaulting on your credit card. In that case, your credit score would be impacted.
If you’re interested in exploring more options when it comes to protecting your credit, feel free to check out our options at RMLEFCU or call us at 303-458-6660. We can discuss this program with you, explain how it is different from other overdraft protection plans.