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Definition: a line of credit that banks offer to their customers to cover their
overdrafts. Overdraft protection kicks in when a customer writes a check
for more than the amount in their account.
From the case above regarding Lucy and her mother,in my opinion, it was not a wise decision to do so because It covers transactions that exceed the balance in your checking
account, giving you peace of mind and eliminating the inconvenience and
potential embarrassment of a rejected check, check card or ATM
transaction..Although it comes with a price but it is wise to have it.
Factors to change for them to consider applying for it:
1.reduction in interest
2. Doing a way with the application fee
3.Reduce transfer fees
Please let me know if you need any clarification. I'm always happy to answer your questions.
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