Is it advisable to connect a credit card to a checking account for overdraft protection?
I was told not to discuss the details, but I was ripped off by someone who got a hold of my debit card. They took $2,000 out of my checking account plus used my $500 line of credit I had for overdraft. I didn't find out for a couple of days, then to my surprise I got 3 overdrafts in the mail. I reported it, but while the bank was investigating I get a notice the overdraft was unpaid and I owed additional fees. I called and the schmucks wanted the $500 line of credit, 3 overdrawn checks and fees paid. When I get a letter about a week later I was expecting it to say the money was back in my account, but instead it showed "demand deposit". they just closed my CD and moved the money to my checking account without me authorizing it, called it a demand deposit and charged me a fee for it.
Well, the next thing I did was I opened a checking account at another bank so I would have a place to deposit my paycheck. Thing is they wanted me to attach a credit card to the checking account for overdraft protection, I'd really rather not have it at all, but it kind of sounded like I had to. When I finally got everything straightened out, I went to US Bank for a savings account. For extra safety, I opened an eBanking checking account with BofA. I opened that account just to keep a few hundred in for a debit card and if anyone gets hold of that one, they can't clean out my whole checking account. At first I picked up a prepaid card from US Bank because it had less monthly fees than their checking account, but I was told this was subprime behavior that would come back to bit you in the @$$ when you try to open a real account or get a credit card.
I really didn't want the debit card in the first place, but then I ended up cashing checks at the window and the bank pointed out cashing checks was also subprime behavior and you must always deposit checks - problem, NO cash. For major purchases like a new suit, I don't have a problem using Amex, but when it comes to the ma & pop shops, I'd rather use cash or debit to save them on merchant fees. I figure a store like JCPenny can pay the merchant fees.
I hope now I'm doing everything okay, my parents think it's stupid I have money in 3 different banks and BofA is several hundred miles from me. I have an Amex green but only use for major purchases which really isn't worth the annual fee. I use a US bank cash+ for my main card and I have a Citi Forward that I rarely use. I put the Citi Forward on the checking account, but I'm thinking now I should go open an account someplace else?????? I really don't want to risk getting that card maxed out when someone robs my account again.