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Safeguarding Your Finances

Safeguarding Your Finances: Checking Account Line of Credit vs. Overdraft Protection at LA Healthcare FCU

Managing your finances responsibly involves ensuring that you have measures in place to protect your checking account from overdrafts and associated fees. LA Healthcare Federal Credit Union (LAHFCU) offers two valuable options to safeguard your account: Checking Account Line of Credit and Overdraft Protection. In this blog post, we will explore the differences, benefits, and considerations of these two protective features, helping you make an informed decision about the best option for your financial needs with LA Healthcare FCU.

Checking Account Line of Credit:

A Checking Account Line of Credit is a pre-approved credit line linked to your checking account. Key
features include:

  • Seamless Overdraft Coverage: When your checking account balance is insufficient to cover a transaction, the Checking Account Line of Credit automatically provides funds to prevent the transaction from being declined or resulting in an overdraft fee.
  • Credit Limit: LA Healthcare FCU determines a credit limit based on your creditworthiness and other factors. The line of credit is available for immediate use when needed.
  • Interest and Repayment: Interest accrues on the borrowed funds, and you can repay the borrowed amount in installments or in full according to the terms established by LA Healthcare FCU.
  • Convenience: The Checking Account Line of Credit offers a convenient and automatic solution for managing occasional shortfalls in your checking account.

Overdraft Protection:

Overdraft Protection is a service that links your checking account to another account, such as a savings account or money market account, to cover overdrafts. Key features include:

  • Transfer of Funds: When a transaction exceeds the available funds in your checking account, Overdraft Protection automatically transfers funds from the linked account to cover the shortfall.
  • No Credit Impact: Unlike the Checking Account Line of Credit, Overdraft Protection does not involve a credit check or impact your credit score.
  • Transfer Fees: There may be a nominal fee for each transfer made to cover an overdraft, but this fee is generally lower than the fees associated with overdrafts or insufficient funds.
  • Account Linking: You need to establish a link between your checking account and the account you choose for Overdraft Protection, ensuring that sufficient funds are available for transfers.

To protect your checking account from overdrafts and associated fees, LA Healthcare FCU offers two valuable options: Checking Account Line of Credit and Overdraft Protection.

The Checking Account Line of Credit provides a pre-approved credit line that seamlessly covers overdrafts, while Overdraft Protection links your checking account to another account for automatic fund transfers.

Consider factors such as convenience, creditworthiness, interest accrual, repayment options, and transfer fees when deciding which option suits your financial needs.

LA Healthcare FCU is dedicated to assisting you in making the right choice to safeguard your finances and providing peace of mind when managing your checking account.

Contact a representative at LA Healthcare FCU for detailed information and personalized guidance on protecting your account effectively.

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