There are people who overdraft their debit card unknowingly. These individuals probably weren’t aware of how much they had in their checking accounts, thus resulting in them overdrafting their debit cards. Plus, there are also those who overdraft their debit card on purpose and they often do so easily.
You can overdraft your debit card on purpose by making a transaction or withdrawal that exceeds what you have in your checking account. While you plan on overdrafting your debit card remember that there are charges attached.
People overdraft their accounts unknowingly when they fail to track how much they have. But while there are people who play it safe to ensure that they don’t overdraft their accounts, some are keen on overdrafting theirs on purpose. If you fall on such category, this article is for you.
Banks That Let You Overdraft Right Away
How to Overdraft a Debit Card on Purpose?
How many times have you used your debit card in the past? Twice? Thrice? Don’t know?
Average Americans use their credit card 23 times monthly, and this is because it is quicker to use. You can flash a debit card and grab that delicious burger, nice gadget, or shop without difficulties.
But debit cards, and the overdraft fees they incur, can quickly cause financial issues. For a start, studies show that people spend up to 18% more when they use debit cards rather than cash. This can quickly result in issues if you fail to monitor your expenditures.
You’ll also need to know the debit card transaction overdraft fees. If you don’t have sufficient money in your checking account, a $3.50 item can eventually cost you $38.50 or more.
If you need cash urgently, there are multiple options to leverage. These options include applying for a personal loan and talking to a debt relief company to see how to ease the pressure of your debt. However, if you are asking yourself how to overdraft a debit card on purpose, this post is for you.
What Is an Overdraft?
An overdraft is a type of loan, a short-term credit facility that most banks can offer with your current account, depending on your creditworthiness.
When you use an overdraft, your bank lets you spend more than you have in your bank account. Some banks will give you an overdraft automatically, whereas others may require you to apply for one. Ensure you contact your bank to know how to go about the application process.
How Much Do Overdrafts Cost?
There are multiple ways that banks can charge you for overdraft. If you want to change your current account and are a consistent overdraft user, it is important that you check and compare all the associated fees and charges before going ahead with your plan, as they can differ greatly from one bank to the next.
Based on your regular overdraft usage, calculate what you would be charged with other banks for a similar amount—what looks like an affordable alternative, at first sight, can be a terrible mistake later on.
Can You Overdraft a Debit Card?
Of course!
However, you’ll still need to opt-in to a debit card overdraft service.
This means that you can use your card and buy an item when you don’t have sufficient funds in your checking account. Once applying for overdraft protection, your bank (at its discretion) will pay the transaction, and you’ll go home with whatever you bought.
Overdrafting with a debit card is set up similarly to overdrafting with an ATM card. Your limits are determined by your bank, and the charges are often a set amount. When you overdraft with your debit card, your bank will also expect you to return your account to normal ASAP. If you fail to do so, you could be sanctioned. In addition to sanctions like additional fees, your bank can charge you an overdraft fee, usually $35.
Using your debit card and copping the overdraft fee means a $60 gadget is actually a $95 gadget. That $250 pair of bags is actually $285. You understand the scope?
What It Means to Overdraft a Debit Card on Purpose?
Debit cards are quite useful, and with the help of online accounts, they can also help you monitor your expenditure. In fact, they are an ideal alternative to your checking account when settling bills or shopping online.
You can also overdraft through your debit card when you don’t have sufficient money in your account.
Although there are many beneficial loan programs, you sometimes don’t have the luxury of waiting for approval and need cash urgently. You can then overdraw from your debit card without enough funds. Moreover, some banks let you register for overdraft protection, so the transaction isn’t rejected. You may have to pay a fee as high as $35 for each transfer.
Can You Withdraw Money From ATM With Overdraft Protection?
Overdrafting a Debit Card on Purpose
It’s easy to overdraft your debit card on purpose. However, to do this, you’ll need to have overdraft protection. If you don’t, you won’t be able to overdraft your debit card as the transaction will be declined due to insufficient funds.
To overdraft your debit card on purpose, you’ll need to ensure that the funds in your checking account aren’t sufficient for a certain transaction. Having done that, you can go ahead to make a purchase or transaction with more than the funds present in your account.
For instance, if you have $500 in your checking account, you can overdraft your debit card on purpose by making a transaction of $600 or more. Anything more than what you have in your account will do.
