Overdraft Line of Credit

An Overdraft Line of Credit is a service offered by the Town of Hempstead Employees Federal Credit Union to help our members protect their credit when they run a little short from time to time in their checking accounts.

How does your Overdraft Line of Credit work? The Overdraft Line of Credit is attached to your checking account. When funds are not available in your checking account to cover a check, ACH debit, Bill Pay debit or Visa Debit Card transaction, the Overdraft Loan will automatically advance funds to your checking account to cover the amount overdrawn. You will just pay a small $2.00 fee for each overdraft advance. Then, the transaction will clear your account safely without incurring costly insufficient funds fees.

Overdraft Loans are a convenience! The interest you pay on the Overdraft Line of Credit is significantly less than overdraft fees. Plus, you will save yourself the embarrassment and devastating consequences that can come from bouncing checks or Bill Pay debits.

What will my rate and payment be? The Overdraft Line of Credit approval and limit is based on the member's credit worthiness. The limit can range from $500 to $5,000. We offer a low annual percentage rate of 12.75%. The payment will be 3.00% of your monthly outstanding balance, but never less than $30 per month. To find out further details on this program please contact our loan department at 516-867-2828, email us at loandepartment@tohefcu.org, or APPLY ONLINE.