![]() Utilizing an overdraft can help prevent such charges and give you additional time to arrange funds and make the payment. In certain situations, not having enough funds in your account to cover a scheduled payment, such as a utility bill or rent, can lead to late fees or penalties. An overdraft can act as a short-term solution to bridge this gap and ensure that your financial obligations are met until your next paycheck or income source. You may have times when there’s a temporary gap between your income and expenses, resulting in a shortage of funds to cover essential bills or payments. Having access to an overdraft can provide immediate funds to address these urgent expenses until you can arrange other financial resources. Unforeseen emergencies, such as medical bills, home repairs, or car repairs can arise when you least expect them. Of course, most of us need someone to spot us every now and then, and overdrafting can offer much needed financial support during different types of situations such as: When you overdraw your account, the bank covers the transaction on your behalf, essentially lending you the additional funds. It is important to understand how an overdraft works, as well as the downsides to an overdraft. However, if the funds are not available, the bank may spot you via something called an overdraft. However, many people do use their debit card to withdraw money from an ATM by accessing the funds available in their linked bank account – this is known as a withdrawal. You can read our complete guide to cash advances in the OppU article "What is a Cash Advance?". That’s where you take out money using your credit card, and the amount you withdraw is added to your total balance. (By the way, when you think “cash advance,” you’re probably thinking about a credit card cash advance. ![]() ![]() So, no, you can’t get a cash advance with a debit card. Unfortunately, you need to have money in your checking account to do this. You can just go to your local ATM and make a withdrawal, or you can pop into the store and get cash back. And while cash-only transactions might not be as common now in the age of your Venmos and your Paypals, it’s still something you’re going to encounter every so often.Įven if you don’t carry cash around on a regular basis, any small cash transaction can be handled pretty easily. ![]()
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