26

Given the circumstances, I'd use the card(s) for every normal purchase I'd make over the next months, and use the cash to pay the overdraft. This would effectively move the debt to the card(s), at no transfer cost. I'd then work like heck to pay the cards down to zero.


22

The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and fraud protection policy offered by your bank, and should you qualify for it you'll get your money back. If you use a credit card and there's a fraudulent ...


17

Believe it or not, this is done as a service to you. The reason for this has to do with a fundamental difference between a credit card account and a checking account. With a credit card account, there is no money in the account; every charge is borrowed money. When you get to your credit limit, your credit transactions will start getting declined, but if ...


15

The reason they want the transaction to go through is because they make money that way. Remember the overdraft protection might incur a fee. If it does their experience may show them that the fee is a greater source of profit when balanced against the losses incurred because of insufficient funds. Even free overdraft transactions are limited. If they didn't ...


10

Typically, No. If you read the details, balance transfers (and cash takeouts) come with a fee between 2.7 and 5 %, plus the interest for the year (which they often offer 0%). Basically, you increase the owed amount by 50 - 100 immediately, and then kick the can down the road for a year, where an even higher interest rate is awaiting you. Is there any reason ...


10

Note: I am not a lawyer; this is not legal advice. Yes, this seems to be quite legal. The article What Happens to Inactive Bank Accounts on My Banktracker starts with the warning: What happens to inactive bank accounts? If service fees haven’t already drained the balance on the account, an inactive bank account is turned over to the state treasury, ...


9

Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the hire company does a transaction whereby it ensures you will have the funds to pay the damages if anything goes wrong, without you necessarily having enough ...


9

I work at a bank. Here's an explanation plus a few thoughts for your situation. Obviously, these statements are "in general" - your bank may vary slightly in its policies and procedures. The overdraft protection policy is to take money from your other accounts and attempt to cover your transaction so you don't overdraft. So, let's say you have $1 in your ...


8

The laws about this changed in 2010 with the new Overdraft Protection Law HR 1261. § 140B. (c) Consumer consent opt-In.—A depository institution may charge overdraft coverage fees with respect to the use of an automatic teller machine or point of sale transaction only if the consumer has consented in writing, in electronic form, or in such other ...


7

Though I do agree with @aganju, using a credit card to clear debit is mostly a bad idea. I'd say you can lower your payments here. I'm mostly summerising what's said on money saving expert on this topic, so I'd read this. Based on the best money transfer credit card currently advertised there, for your £2000 you'd pay a 1.99% fee up front (£39.80) and then ...


5

The dangers are: When (not if) your card gets used for fraudulent transactions, those funds will be gone from your account until you get it resolved, which might take awhile. When that happens, you'll want them to cancel that card and issue a new one. You'll be without access to any remaining funds in your account until that is resolved, which might take ...


4

The financial institution would not send it to a collection agency for only $200. It is unlikely they would report the delinquency to a credit reporting agency. They will report the delinquency to a deposit account reporting agency, such as Chexsystems. Financial institutions will nearly always run a Chexsystems (or equivalent) report before opening a new ...


4

It is best to pay for the debt with the highest rate of interest first. In this case, that is unclear even though it may not seem so. You need to also consider fees you maybe incurring due to either debt. Some banks have charged fee's around 30/day for having a negative balance in a Cheque Account. If you were paying a daily fee of that amount, the ...


4

Generally, checks that are deposited, are being put on-hold for a couple of days (or more, depending on the amounts) until the amount is available. But they do post on the date deposited, and usually some initial amount ($200 in my bank) is available right away. The amounts and holding periods change from bank to bank, so ask your bank. Usually, when you ...


4

The bank will know best. You could look for their documents on the website that discuss funds availability. The size of the check could also make a difference. One way to see if you can use the money is to look online at your balance. My credit union reports two numbers for each account: Balance and available balance. The difference covers the deposits ...


4

Unsecured debt is usually quite costly unless you already have established good credit. You're paying over 18% on your current overdraft balance. If the cost is a pound per day regardless of the balance, then when you've paid it down to £1000, you're now approaching 37% on your balance. You should certainly pay it off as soon as you can. I agree with much ...


4

Many years ago, I used a Visa debit card for all purchases. Then there was a fraudulent charge on the card; luckily, my bank spotted it and refunded it immediately. I asked them what I could do to protect myself in future: the bank said I should use a credit card instead, as that had much greater protection. (As other answers have pointed out, you have an ...


3

Most credit card balance transfer deals are only for paying off other credit cards. However there exist a small number of cards that offer good "money transfer" deals. The fees will likely be higher than a traditional balance transfer but they may still be a good deal. http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs


3

Is it legal to tack on charges like that? When you signed the account terms and conditions, it contained provisions for overdraft 'protection'. How is that ethical or customer focused? The practice is most certainly neither ethical nor customer focused. It has been a practice of banks for decades now to include overdraft 'protection' with most checking ...


3

You won't get reported to a credit bureau for an overdraft, that's a service offered internal to the bank. The only way it would affect your credit score is if you had an overdraft fee that you didn't pay, which would get reported. There's is a system that gets a notice when you overdraft though. The bank MIGHT report you to ChexSystems, which is an ...


3

I'll assume you are in the UK, where 'current account' is the normal term for what is called a 'checking account' in North America. By that I mean an account where you do your day-to-day banking and which allows you to write cheques, withdraw cash with a bank card, set up automatic payments etc. Not only is it possible, it's absolutely normal. A current ...


3

Federal law in the United States (as the OP mentions USAA) sets different requirements and limits on a user for reporting fraudulent use of a credit card versus a debit card. While as a matter of good customer service, a bank or card may hold you to $0 for the report of a fraudulent charge for either type of account, what they are required to do by federal ...


2

I made this mistake and tried calling Paypal...the first time I have ever been unhappy with their service. The girl gave me some number but didn't make it clear whether it was an order reference number or a reference phone number for the company I ordered from. I called within 10 minutes of placing my order and they were unable to cancel or change the ...


2

First of all, this does not sound like a debit situation. Every debit has to be authorized by the entry of a pin code. So, the hotel could not have arbitrarily created a new debit charge. Usually, hotel charges are credit charges. Once they have your credit card number, they can charge anything they want to the credit card. If it is an accidental double ...


2

I'm concerned that someone may steal the card and charge something, causing the balance to go negative for 'x' dollars, where 'x' may be many thousands. Call your bank. I had a situation a number of years ago where someone deposited a fraudulent check in to my checking account then used a "dupe" of my debit card to run my account negative. It was a mess, ...


2

It depends on your bank and the details in the agreement, but typically, interest is calculated daily. So if you borrow 1000 EUR for 1 day, you pay 15% * 1000 EUR * 1/360 = 42 Cent (41.666667 cent to be exact). You can simply multiply these 42 cent up with the number of days you plan and the number of 1000s EUR. Note that weekend days count too, even if you ...


1

Your credit-score is concerned with your current credit accounts (credit-cards, HELOC, loans, mortgage, et cetera) - your Current/Checking bank account is not a credit account so it is not reported to the credit agencies. Granted, being overdrawn is effectively the same as having a very expensive loan from the bank- however banks do not routinely report ...


1

Your plan to use the same card for the debt transfer and for daily purchases seems flawed. If you absolutely require the convenience of putting daily or online purchases on a credit card, and can do this while staying within your budget, make sure that you have a grace period to pay the bill without accruing interest. The easiest way to do this is to have ...


1

I understand this is old.... but YES it is treated the same as a bounced check and is considered check fraud. There will be a bench warrant and you will get arrested. It happened to me on a $50 vet bill. It's not the same circumstances for every ACH payment you set up tho. Your credit cards report to the credit agencies and in turn affects your credit. Just ...


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