Do the words “overdraft fees” ring a bell? You’re not the only one. Many people get hit with overdraft fees by going into a negative balance in their bank account. To try and avoid bank overdraft, some people opt for short-term loans. But how do bank overdraft fees work versus installment loans?
Sometimes people run a little short of money before pay day rears its head. It happens to the best of us. Every once in a while we get hit with unexpected charges or are inundated with emergency costs. In these cases, it’s all-too-common that we enter that territory we would rather avoid: bank overdraft.
Generally speaking, bank overdraft happens when the balance in your bank account becomes a negative value (ie., less than zero). When this threshold is crossed, financial institutions penalize account holders by implementing an overdraft charge. And if you’re already short on money, such overdraft fees can really put a strain on your pockets.
Part of the issue is that many people aren’t necessarily aware of the policies that their bank has in place regarding overdraft fees. Financial institutions often operate based on complicated fee structures and procedures, and it’s often difficult to tell what charges you may incur if your account is overdrawn. Bank overdraft fees can depend on a number of factors – particularly the policies of the specific financial institution – but also based on the account terms.
Overdraft protection(also called arranged overdraft), for example, provides an overdraft limit which incurs interest at an agreed upon rate. If the limit is exceeded then additional overdraft fees are charged. Unarranged overdrafts, which are not previously agreed upon with the bank, often result in expensive overdraft fees and a much higher rate of interest.
Some people opt for an installment loan if they need quick cash to keep them afloat until their next pay day. Approval is fast and is based upon either your current income or your credit history.
The repayment period is generally set over a short period of time, typically required on your next pay day.The interest rates associated with loans depend on a number of factors, including the loan amount and the pay period terms set.
If you are looking to access a small amount of cash quickly, services like Lendgreen offer a convenient online application form, quick approval, and a direct deposit function that allows you to receive your money in as little as 24 hours.
In the case of either bank overdraft or installment loans, you are borrowing money. To determine which route would better suit you, educate yourself on your bank’s overdraft policies or visit Lendgreen.com to learn more about how our services work.
Niiwin, LLC, d/b/a Lendgreen (“Lendgreen”), is a wholly owned subsidiary of LDF Holdings, LLC, a wholly owned subsidiary of the Lac du Flambeau Business Development Corporation, a wholly owned and operated economic arm and instrumentality of the Lac du Flambeau Band of Lake Superior Chippewa Indians (“Tribe”), a federally recognized Indian tribe. Lendgreen is organized and in good standing under the laws of the Tribe. Lendgreen is a duly licensed Financial Services Licensee of the Lac du Flambeau Tribal Financial Services Regulatory Authority, an independent regulatory body of the Tribe.
All loan application decisions are made at Lendgreen’s office located at 597 Peace Pipe Road, 2nd Floor, Lac du Flambeau, Wisconsin 54538 on the Tribe’s reservation. If your loan application is approved by Lendgreen, your loan will be governed by Tribal law, applicable federal law, and the terms and conditions of your loan agreement.
This is an expensive form of borrowing. Lendgreen loans are designed to assist you in meeting your short term borrowing needs and are not intended to be a long term financial solution. The Annual Percentage Rate (“APR”) as applied to your loan will range from 720% to 795% depending on your payment schedule, pay frequency, loan term, and the amount of your loan. Late payments and non-payment may result in additional fees and collection activities as described in your loan agreement and as allowed by Tribal and applicable federal law. Lendgreen does not lend to residents of AR, CT, GA, MD, MN, NY, PA, VA, WV, WI or to members of the military or their dependents.
