Using Credit Card for Overdraft Protection
This entry was posted on 11/21/2006 4:46 PM and is filed under Credit Card,Checking Accounts.
Wachovia has offered the option of using its cards for overdraft protection since 1992. When the card is tapped to cover an overdraft, there is a $10 overdraft fee. While the overdraft is treated as a cash advance, the APR is the same as the credit card and any cash-advance fees are waived.
Using plastic at Wachovia is less expensive their overdraft protection plan. Also in the Wachovia customer's favor is that the grace period, usually 20 to 25 days, can help them to avoid interest charges.
But other institutions could waive the overdraft fee and let their card's cash-advance policies apply. This means no grace period, a comparable fee, and typically higher interest rates.
