 TITLE: What Are Overdraft Fees and How Much Do They Cost? CONTENT: How to Avoid Overdraft Fees\n---------------------------\nOverdraft fees are expensive banking-related fees that you may be able to steer clear of by following these steps:\n*   **Cover the negative balance quickly.** Some banks give you a grace period during which time an overdraft fee isn't charged if you replace the balance within a business day.\n*   **Opt out of overdraft protection.** You could consider opting out of overdraft services. If you opt out, the bank may simply decline transactions when your account balance can't cover the charge instead of accepting the charge and adding a fee on top.\n*   **Link to a savings account or credit card.** Your financial institution may offer the option to automatically use another account to cover the charge if you don't have enough funds for a transaction. As mentioned, a fee may also be charged for this service, but it could be less than the overdraft fee.\n*   **Keep close tabs on your bank account balance.** Consider downloading a banking app to keep your balance at your fingertips around the clock. Your banking app may let you set up account alerts that give you a heads up when your balance is running low.\nIf you only rarely (or never) overdraw your bank account, the fees may not be a big consideration. If overdrafts are frequent, however, they can easily pile up and could put you in a difficult financial position. Not only that, your banking history and credit history could be affected when those balances go unpaid.\nIf you're worried that an unpaid account balance in collections may be hurting your credit score, consider pulling your credit report to review your records. You can view your credit reports from all three credit bureaus at AnnualCreditReport.com. You can also create an Experian account to receive your Experian credit report for free along with FICO® Scores☉ based on Experian data. Going forward, reviewing your bank balance regularly could help protect your credit and minimize costly overdraft fees. END