I have a $500 bounce protection on my account?

I have never used it, or been overdrawn at anytime. My question is; How does this work? I am needing to have some dental procedures done and may need to withdraw $300 over my balance. How long do I have to bring my balance back to positive? Also, If I do not have the funds, to keep it in the positive, would it be possible to bring it up then back down, several times in a few months span, until I can clear it altogether? Ex. Overdraft $300, next week deposit $400, but then withdraw $300 (putting me $200 overdrawn) etc.? Thanks for any help.

I have a $500 bounce protection on my account?
I'll answer your questions in order


1. they way it works is: you write a check or use your debit card for a purchase that is greater than what you have avaiable. Money then gets pulled from whatever your overdraft source is, like a credit card, savings account, line of credit and it covers your charge and prevents it from bouncing and being returned.


2.Most banks charge your account off after 30-60 days of being at a negative balance each day. It then gets reported to ChexSystems and you will not be able to open an account until that is cleared up. Going negative for a week only hurts your pocket. Your bank may charge continuous overdraft fees for each day you are negative, so it could add up real fast.


3.If you were to do that, the bank may shut down your debit card for abuse if you are in the negative continuously. For example, banks are loaning you money when you overdraw your account, but at the same time, if a customer pays the fee, then they just made their profit. Fees are a huge profit source for a bank.
Reply:Yes, but there MIGHT be a few linked to doing it.


Have you checked with the dental office to see if you could make a down payment and then set a repayment schedule with them?


Or, use a credit card if you have one and pay it off like you plan the overdraft.
Reply:Yes, you can use the overdraft in the sense you are speaking of (Positive, then take out more etc)


But beware, there are some mighty hefty fee's associated with using the overdraft...


Usually $5 for each withdrawal, then a monthly fee on top of that... If it goes into overdraft 3wks out of a month, you'd probably be looking at $250+ in bank fees.
Reply:Dont do it, you will get huge overdraft fees that you wont be able to keep up with! Use a credit card or go to your bank and ask for a loan or your parents.
Reply:First, you pay a fee to have them cover the money for you. Then, you will pay a ridiculous interest rate, like having a horrible credit card (usually about 19%) on the borrowed money.





Your best bet is to just talk to the Dental Clinic and work out a payment plan. For example, $300 now and $100 per pay check until the balance is paid off. Many times, they would rather work out a payment plan ahead of time than lose your business or not get paid because of a bounced check, etc.