Introduction
An overdraft is a short-term loan granted to customers by banks that allow customers access to money more than their current account balance at a fixed interest rate. The need for an overdraft can rise at any time or place, so if you need an overdraft, you should opt-in beforehand at the bank on the account intended for an overdraft. A good overdraft allows a customer access to multiple places of purchase and a low-interest rate. Let us know ‘Gas Stations That Let You Overdraft’.
What is Gas Station?
Gas stations, just like every other place of purchase can receive overdraft payments. The permission to use an overdraft as payment depends on the bank rather than the gas stations’ payment policy. Therefore, gas stations will accept an overdraft payment from an account that has access to an overdraft. To use overdraft payments at a gas station or any point of purchase, a customer should follow these simple steps:
- Have a current account in your bank
- Contact your bank to make an overdraft available on your account, the bank then reviews your application for eligibility.
- Once the bank has reviewed your application, it decides whether your account is eligible for either a short-term or long-term overdraft, or not eligible for an overdraft. I will advise you to use an active account that has a history of regular and timely bill payments. It will increase your chances of getting a Yes from the bank considerably.
- If your account is eligible, the bank will respond with its overdraft policy which consists of the overdraft duration, the amount granted for overdraft(overdraft limit), the interest rate on the overdraft, and other pieces of information (go through these carefully before accepting to the bank’s terms).
- Upon accepting the bank’s terms, the bank will process the overdraft request usually between a couple of hours and a couple of days before you can access the overdraft.
The benefit of an overdraft is that it gives you access to an amount of money that you can use on rainy days. The money could be used for emergencies, unforeseen needs that weren’t planned for, and need an immediate monetary solution. It has saved so many people’s lives.
Conclusion
The nature of an overdraft is like a get out of jail free card and it should be treated as such, a quick fix for an unplanned monetary problem. Due to the high-interest rate of overdrafts, it is advised to hasten the repayment of overdrafts, lest it becomes a tiring cycle of debts with overwhelming interest.
Gas stations can not give you the permission for an overdraft, but they will not render their services to anyone who isn’t paying or doesn’t have access to an overdraft to pay on his/her account.
If you have access to an overdraft and you need a quick refill for your automobile with a zero account balance, you can roll into any gas station and get your fill. Your overdraft has your back.
Although an individual needs to know all about an overdraft before requesting one, these are some questions overdraft applicants have before and after taking an overdraft.
Frequently Asked Question
- Can I Get An Overdraft On My Savings Account?
No, you can not get an overdraft on your savings account because banks do not allow withdrawal of more than the amount in a savings account.
- Can I Get An Overdraft On Another Person’s Account?
No, you can not request an overdraft on another person’s account, no matter the relationship with the person without the account owner’s permission.
- Can I Have Multiple Overdrafts At A Time In The Same Or Different Banks?
An individual can have multiple overdrafts open at the same time in as much as the bank deems the accounts eligible for overdrafts, although banks have a limit of 4-6 overdraft accounts at a time in the same bank.
- How Can I Pay For Gas Using An Overdraft?
Once your paying account has been approved for an overdraft, you can pay with your debit card or any other means of payment.
- Do I Need To Return To The Gas Station To Clear My Overdraft With Them?
No, you do not need to go back to gas stations to settle whatever bill you paid for using an overdraft, your bank settles payment with the gas stations immediately after the account is being charged. Whatever you owe as overdrafts will be paid only and solely to the bank.
- What Is The Best Interest Rate For An Interest Rate?
There is no direct answer to this, but it is essential to read your bank’s overdraft interest rate section and consider if it is convenient to pay back before agreeing to the terms.
- Can I increase My Overdraft Limits?
A customer can request an increase in overdraft limits if the terms of the previous overdraft were fulfilled. The final decision to increase the limits remains with the bank after its review and it will tender a new or adjusted overdraft policy if the overdraft limit increase is granted.
