Chime SpotMe® Overdraft Protection vs. Albert Cash Advance

What is an Overdraft

An overdraft occurs when you spend more than you have in your bank account. An overdraft occurs when you write a check, use a debit card or ATM card in a transaction, or make an automatic bill payment for an amount greater than the balance in your checking account or savings account.

What Is Overdraft Protection?

Overdraft protection is an account feature that allows you to pay for purchases without having enough money in your checking account. It’s available with most checking accounts and debit cards.

Why Do You Need Overdraft Protection?

Overdraft protection helps protect against an overdraft by covering any charges made before you have enough money in your checking account to cover them. This means that you won’t incur fees or interest charges on purchases and transactions.

There are ways to avoid overdraft fees that involve closely managing your account but access to overdraft protection can keep you from paying excessive fees.

Ways To Manage Your Checking Account

Managing your checking account is one thing that will keep you on track financially plus keep you out of ChexSystems and EWS. It’s also an area where many people struggle. Here are several ways to avoid mistakes so you can stay on top of your finances.

First, check your bank statement.

If you’re using an ATM card, you might be charged an overdraft fee each time you try to withdraw more than what’s available in your account. This happens because banks charge customers who overdraw their accounts. However, there are ways to avoid being hit with an overdraft fee.

Second, contact your bank.

If you see that you’ve exceeded your balance, contact your bank immediately to see if they can decline the transaction. Declining the transaction can help you avoid an overdraft fee even though you’ll need to follow up with the company or person involved with the transaction.

Third, don’t let your balance get too low.

If you’re not careful, your checking account balance can quickly go down to zero. This means that you won’t be able to make payments on your credit cards or pay bills. Before you reach this point, take steps to avoid it.