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What If You Overdraft?

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If you do most of your spending through a bank account that’s connected to a debit card, it’s not uncommon to overdraft. The dangers that you run into are two-fold. First, you might overdraft because you simply lose track of how much money you have. In that case, you might swipe your card and spend money that you don’t have. Then there are many different responses that a bank might have. Some banks have no overdraft policy; in those cases, your card would just be rejected. If your bank has an overdraft policy, they might charge you more money because of your overdraft.

The other reason that people overdraft is because of direct withdrawals. It’s oftentimes most convenient to schedule your various bills to automatically withdraw money from your bank account. That way, you won’t actually have to worry about paying your bills; the companies will just make a withdrawal at the same time each month. However, if you don’t have enough money to cover all of them, that could cause you to overdraft.

Access Extra Money

In some cases, you might be overdrafting because of a one-time lack of funds. In those cases, you might just need to have a little bit of extra money. You’ll need to access to an overdraft facility in Malaysia. There are many different ways to deal with an overdraft and access more money. One of the ways to do that is with a debit card that has some credit card features.

For example, if you overdraft from your bank account, you can have a preapproved credit limit on your card. Then, your card will act a lot like a credit card. You will be able to pay off your overdraft with measured monthly payments just as with a credit card. That will offer you the security of a debit card without having to worry too much about overdrafting.

Emergency Funds

An overdraft plan is for more than just making a mistake. If you need some kind of emergency funds, you might overdraft knowing that you are doing so. That will give you the ability to access some extra emergency funds in a pinch even if you don’t actually have that money. You should not rely on this as it is best to avoid overdrafting at all; however, in an emergency, you have to do things that you would not normally do.

If you are opening a bank account with a debit card, you should really consider one that has overdraft protections. The overdraft protection should include a preapproved credit limit that you can pay back on your own schedule. If you simply forget how much money you’ve spent or if you have some kind of emergency, you’ll be thankful for overdraft protection.

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