Overdraft Line of Credit

An Overdraft Line of Credit offers peace of mind when you inadvertently write a check for more than what you have available in your checking account. When this happens, your Overdraft Line will protect you by automatically covering the check. Plus, you avoid the inconvenience of a returned check and potential fees. 

How does it work?
Let’s say you write a check for $100 but your checking account balance is only $75. In many cases, you will be charged a fee (often over $30) if the check is returned for having insufficient funds. This fee is in addition to an overdraft fee that most institutions, including PPCU, will charge.

When you have a PPCU Overdraft line of credit, the amount needed to cover the check – in this case $25 – is automatically covered by your overdraft line. So instead of paying two fees that could easily amount to over $50, you are paying only the overdraft amount of $25 plus the interest on the amount you borrow using the line of credit.

Advantages of an Overdraft Line of Credit

  • Flexible and affordable – The amount of credit available to cover overdrafts is up to $2,500 and rates are as low as 8.99% APR
  • Cost-effective – Similar to our VIP line of credit, there are no fees, and you pay only the interest plus the principle (the amount you use) for what you need
  • Peace of mind – An Overdraft line of credit will automatically kick in when needed and cover unexpected overdrafts
  • Term is 120 months
  • Take advantage of discounts – receive a 0.25% rate discount when you have a Secure Checking or Silver Express account

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