A report, a calculator, a pencil, and an eraser are highly blurred in the background. On top are the words "How can I avoid overdraft fees?" This implies that in this article MaxLend will help teach people what they can do to avoid overdraft fees.

How Can I Avoid Overdraft Fees?

If you’re like many people, overdraft fees can be a significant burden on your finances. Generally, overdraft fees occur due to negative bank balances or not having enough funds in your account to cover a transaction. But what exactly are overdraft fees, and how can you avoid them? In this blog, MaxLend Money will answer those questions and more.

What Is an Overdraft Fee?

An overdraft fee is a charge that occurs when you spend more money than you have available in your bank account. When this happens, your bank may cover the cost of the transaction, but they will also charge you a fee for the service. Overdraft fees will typically range from $30 to $40 or more, depending on the bank.

Can You Dispute Overdraft Fees?

Yes, you can dispute overdraft fees if you believe they were charged unfairly. However, it’s important to note that disputing overdraft fees might be difficult or take time to resolve. In most cases, you’ll need to provide evidence that the fee was charged in error, such as a bank error or a technical issue with the bank’s online system. If you do dispute a fee, be prepared to spend some time and effort to make your case.

Do Overdraft Fees Affect Credit?

Overdraft fees themselves do not directly affect your credit score. However, if you have a negative bank balance for an extended period, your bank may send your account to a collection agency. If this happened, the collection agency would have the opportunity to report the negative balance to major credit bureaus. Additionally, if you frequently have negative balances, this can be a red flag to lenders and may affect your ability to get approved for credit in the future.

How Do You Know Your Bank Balance?

It’s important to keep track of your bank balance to avoid overdraft fees. Most banks offer online banking or mobile apps that allow you to check your balance at almost any time. You can also check your balance by calling your bank’s customer service line or by visiting an ATM. Some banks even offer alerts via texts, emails, or both, that can notify you when your balance is getting low.

Remember that the information provided by the bank will not always account for pending charges or outstanding checks. This means you may have less money in your account than you are told by the app, from customer service, or from the information you received out of the ATM.

You can use a paper check register or an online tool to keep track of any outstanding deposits, withdrawals, or charges to your account. If you need some help understanding how to balance your checkbook and knowing your bank balance, and you want to learn more, MaxLend has this blog you can read: What Is Balancing a Checkbook?

What Can I Do When My Bank Account Has a Negative Balance?

If you have a bank account with a negative balance, act quickly to avoid further fees or continuing a pattern of being overdrawn.

Here are some steps you can take:

  •     Make a deposit: Deposit money into your account as soon as possible to bring your balance back to positive.
  •     Contact your bank: Call, email, or use the banking app from your bank to see if they offer overdraft protection, which can help prevent future overdraft fees.
  •     Apply for a loan: Consider a short-term loan from a reliable lender like MaxLend Money to help cover your expenses and avoid additional overdrafts and related charges.

You Might Avoid Overdraft Fees With MaxLend

Overdraft fees can be a significant burden on your finances. However, by keeping track of your bank balance, disputing unfair fees, and taking action quickly when your account has a negative balance, you can avoid overdraft fees and protect your financial well-being. If an unexpected expense arises and your bank balance just won’t cover it, you may want to consider applying for a personal loan with MaxLend to cover the expense. That way, you avoid over-extending your bank account and overdraft fees, while still covering your expenses.

At MaxLend, we provide alternative solutions to payday loans. This is done via cash loans that can be used for many different expenses. Easily find out if you qualify for a loan with MaxLend when you apply for cash online.

For more about how our loans work or if you have any additional questions, go to our website or call MaxLend at 877-936-4336. Those who apply for a loan and qualify are may be eligible for Same Day Funding.* As an added bonus, when you take out your first loan with us, you will be automatically enrolled in our MaxLend Preferred Rewards program.



Consumer Financial Protection Bureau – Comparing Overdraft Fees and Policies Across Banks

Experian – Does an Overdraft Affect Your Credit Score?

Related Readings:

Overspending: How to Stop Spending Money

Budgeting 101


*Same Day Funding is available on business days where pre-approval, eSignature of the loan agreement and completion of the confirmation call, if a call is required, have occurred by 11:45 a.m. Eastern Time and a customer elects ACH as payment method. Customers who complete this process by 1:30 p.m. Eastern on business days may still receive funds on the same day, but some banks may not disburse the funds until the next business day. Other restrictions may apply. Certain financial institutions do not support same day funded transactions. When Same Day Funding is not available, funding will occur the next business day.

The content on this site is for informational purposes only and is not professional financial advice. MaxLend does not assume responsibility for information given. All information should be weighed against your own abilities and circumstances and applied accordingly. It is up to readers to determine if this information is safe and suitable for their own situations.

MaxLend, is a sovereign enterprise, an economic development arm and instrumentality of, and wholly-owned and controlled by, the Mandan, Hidatsa, and Arikara Nation, a federally-recognized sovereign American Indian Tribe. (the “Tribe”). This means that MaxLend’s loan products are provided by a sovereign government and the proceeds of our business fund governmental services for Tribe citizens. This also means that MaxLend is not subject to suit or service of process. Rather, MaxLend is regulated by the Tribe. If you do business with MaxLend, your potential forums for dispute resolution will be limited to those available under Tribal law and your loan agreement. As more specifically set forth in MaxLend’s contracts, these forums include an informal but affordable and efficient Tribal dispute resolution, or individual arbitration before a neutral arbitrator. Otherwise, MaxLend is not subject to suit or service of process. Nothing in this website is intended to waive or otherwise prejudice MaxLend’s entitlement to these protections. Neither MaxLend nor the Tribe has waived its sovereign immunity in connection with any claims relative to use of this website. If you are not comfortable doing business with sovereign instrumentality that cannot be sued in court, you should discontinue use of this website.