Loan option - overdraft protection

Overdraft protection is offered by most banks and credit unions. It provides extra money if you spend more than you have in your chequing account.

Overdraft protection can provide a useful safety net for times when you have less money than you need. It usually comes with fees so make sure you understand what those are before signing up for, or using, overdraft protection. Depending on how long you owe the money for, overdraft protection will usually cost you much less than some other types of loans, such as payday loans.

If you are thinking of getting overdraft protection from your bank or credit union, there are things to think about.

Remember that you have rights when getting overdraft protection or another type of loan.