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Overdraft Line of Credit
A loan tied to a checking account that can be used to cover transactions that exceed the available balance in the account.
More Details
An overdraft line of credit is a type of loan that is linked to a checking account and is designed to cover overdrafts, or checks that are written for more money than is available in the account. Overdraft lines of credit are often offered by banks and credit unions as a way to help account holders avoid overdraft fees and other charges associated with insufficient funds.
Example
Imagine that you have a checking account with an overdraft line of credit attached to it (like the MCU Everyday Hero Account). If you write a check for more money than you have in your account, the overdraft line of credit will automatically be activated and the funds will be transferred from the line of credit to your checking account to cover the overdraft.
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