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Overdraft Line of Credit
What is an Overdraft Line of Credit?
Instead of charging expensive overdraft fees when your balance goes below $0.00, we offer the option of choosing your own Overdraft Line of Credit with 360 Checking. Depending on the limit you are offered and select, your transactions on 360 Checking will be processed when you dip below $0.00 up to whatever dollar amount you chose.
Instead of paying an expensive overdraft fee, you’ll just pay interest on the amount you borrowed for the amount of time it’s outstanding (we’re talking pennies).
Why is the balance on my 360 Checking negative?
You'll see a negative balance when you’ve made a withdrawal or purchase that has taken your balance below $0.00. The negative amount reflects the amount your Overdraft Line of Credit has kicked in to cover the difference between your available balance and the amount of the withdrawal or purchase.
How does the Overdraft Line of Credit work?
If you choose to have an Overdraft Line of Credit, it applies to your 360 Checking and is accessed anytime your balance goes below $0.00.
Here’s an example: A 360 Checking Customer has $1,000 in his 360 Checking, and an Overdraft Line of Credit limit of $50. He buys a new laptop computer for $1,050 using his 360 Checking Card. This transaction will be processed using the $1,000 balance in his 360 Checking, and $50 from his Overdraft Line of Credit. His 360 Checking balance will now appear as -$50 on our website, which reflects the $50 credit used from his Overdraft. He will then pay interest on the $50 he borrowed.
Is there a charge for using the Overdraft Line of Credit?
You’ll pay interest on the amount you borrow. Please review the Overdraft Line of Credit disclosure for more info.
How will I know if my 360 Checking balance has gone below zero and I’ve gone into my Overdraft Line of Credit?
You’ll receive an email notification alerting you when this occurs. When you sign in to capitalone360.com, you’ll also see a negative balance on your 360 Checking along with a reminder that your Overdraft Line of Credit is providing automatic protection. In order to pay back the balance, you’ll need to make a deposit.
What is the APR on the Overdraft Line of Credit?
The variable APR as of 3/17/2017 is 12.00%. Please review the Overdraft Line Of Credit disclosure for more info.
How is interest calculated on my Overdraft Line of Credit balance?
Whenever you dip into your Overdraft Line of Credit, we’ll calculate the interest owed from the day the transaction amount is posted until the balance is paid in full. There is no interest grace period for transactions that post against your Overdraft Line of Credit. Interest owed will be calculated by:
How do I make a payment on my Overdraft Line of Credit?
If you’ve dipped into your Overdraft Line of Credit or exceeded your overdraft limit and need to make a payment to bring your 360 Checking into good standing, just make a deposit. Here’s how:
Keep in mind, any recurring deposits, either through Direct Deposit or an Automatic Savings Plan, will also count as a payment.
How do I pay the interest on my Overdraft Line of Credit balance?
At the end of each month, we'll automatically subtract any interest owed from your 360 Checking balance. If you dip into your Overdraft Line of Credit at any point in the month, the interest will be deducted at the end of that month.
If I’m carrying an outstanding balance on my Overdraft Line of Credit, when and how much will I have to pay?
If your 360 Checking balance is negative at the end of the month, you must make a deposit of at least the minimum payment amount by the last day of the following month. Here’s how to calculate your minimum payment amount:
We’ll send you a reminder email before your payment is due and additional reminder emails when you miss a payment. When you sign in to capitalone360.com, you’ll also see a message that provides instructions on how to make a payment.
What happens if I don't pay my Overdraft Line of Credit on time?
If you do not make the minimum deposit due by the last day of the following month, any missed payments will be included in the next payment due. If you miss a payment, a temporary hold will be placed on your account. Until a payment is made, you will not be able to use your 360 Checking Debit Card or make any withdrawals (including Bill Pay, Person2Person Payments, Mail a Check and Cashier's Check).
If you miss more than three payments, your Overdraft Line of Credit limit will be reduced to zero ($0), and your 360 Checking may be closed altogether. You’ll still need to make payments to the outstanding Overdraft Line of Credit balance.
This does not affect any other accounts you may have at Capital One 360.
Why is my Overdraft Line of Credit showing zero when I haven't exceeded my limit?
It could be reduced to zero for several reasons such as, an adjustment on your available limit as a result of late payments or an account review. If this does occur and you’re not sure why, give us a call at 1-888-464-0727 and one of our Associates will be able to provide you with more detailed information.
Do you pull my credit if I apply for 360 Checking and the Overdraft Line of Credit?
Yes. As part of your application, Capital One 360 will obtain information about you from a consumer credit reporting agency to confirm that you are eligible for 360 Checking. (But don't worry, this is a "soft pull" and won't affect your credit score.)
If you choose to apply for the Overdraft Line of Credit, a credit check is required. (This is a "hard pull" and may impact your credit score.)
How do I apply for an Overdraft Line of Credit?
It’s easy, just follow these simple steps:
Keep in mind, the maximum line amount possible is $1,000.
In order to apply online, your account must:
How do I switch from Overdraft Line of Credit to the Free Savings Transfer option?
If you want to close your Overdraft Line of Credit and change your overdraft preference to the Free Savings Transfer option it’s easy. Before switching to Free Savings Transfer, you’ll first need to close your Overdraft Line of Credit. Keep in mind, you must not have a pending overdraft transfer or any restrictions on the savings and/or checking account in order to close the Line of Credit.
Remember, your account ownership must be the same between the 360 Checking and 360 Savings account and neither account can have any restrictions in order to establish a Free Savings Transfer link.
What happens if I don’t have overdraft protection?
Without overdraft protection, any transactions that cause your 360 Checking to dip below $0 may be declined.
Can I have more than one Overdraft Line of Credit?
No, you can only have one Overdraft Line of Credit account even if you have multiple checking accounts, including joint accounts. You can still have Overdraft coverage by choosing one of the other options (Auto Decline, Free Savings Transfer, Next Day Grace) that we offer.