How does an overdraft line of credit work?

Overdraft line of credit is a loan product that's attached to your checking account. A credit limit is established and funds are advanced to cover any shortages in your checking account, up to the specified limit.

When your overdraft line of credit covers a Non-Sufficient Fund (NSF) item, you could avoid NSF fees, and any returned check fees that may be imposed by the merchant.

When you write checks and you do not have the available funds there will be an automatic transfer/advance from your available funds in your Overdraft Line to your checking account, in increments of $100, to cover the item(s).