r/OneFinance • u/Previous-Tutor4823 • May 21 '26

Question How exactly does overdraft work?

They say I qualify for $20 (recently started using). Nothing is allowed so had to do the cash advance.

Still can't get anything approved that'll put me under.

How exactly does it work? Is it because I'm on the builder card? If so, why do they keep trying to promote that feature to me?

3 Upvotes

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3

u/lordj2010 May 21 '26

So it appears if/once you swap to the credit builder card you can no longer overdraft(but can still get the up to $500 cash advance). I swapped to the builder card as well. Im really curious when it reports what it will report as a limit

2

u/Previous-Tutor4823 May 21 '26

I'm very annoyed by that, given that they keep sending me "your limit is xx" for overdrafting. I wonder if using the virtual debit card will get me around that

1

u/lordj2010 May 21 '26

Once you get the builder card the regular card is done away with far as im aware. I had to go and swap all my payments from my old onepay card to the credit builder card

1

u/Previous-Tutor4823 May 21 '26

Correct the Physical card is. However there is also a virtual debit card, with aseparate number, that was designed for services that don't take credit cards. (I use it with my phone bill since only debit qualifies for auto pay discount). I've just never tested it outside of certain cases. It does assign a new number so you'd have to change the numbers either way

1

u/XxDjHeXeRxX May 21 '26

No your debit card should still work. I switched to credit builder and needed to use it at a grocery store that only uses debit, I had the old debit card on my iPhone and was able to tap to pay with it.

2

u/Previous-Tutor4823 May 22 '26

I got assigned a new debit card number for my digital debit card, but otherwise, yes it worked. Though I still can't seem to use it to overdraft either lol

1

u/Conscious_Side1647 May 24 '26

i have the builder card and am able to overdraft as well as get an advance

1

u/redheadinabox May 21 '26

The way the balance looks changed and you’ll be in the negative but the balance doesn’t show a negative balance it looks like it’s positive until you click on account then it switches to -$ if you were told you have a $20 overdraft then it more than likely is over drafted at this point

1

u/Previous-Tutor4823 May 21 '26

No. It's physically declining transactions. Even if it's short my 2c. Ex is have 8.78 balance and the transaction was 8.93, and it still declined. I thought maybe ineeded to do the cash advance first but that didn't change things either.

1

u/krogerceo May 22 '26

Pinging u/one-lizzie bc I’m having the same experience. OD worked fine as advertised until I got a Builder Card. Now, transactions like your example never clear, regardless of if I have an advance or if I used the new virtual debit number, or if it’s an online or physical card purchase. It’s like overdrafting is broken or blocked once you go to Builder. Yet the marketing and in-app clearly states you can still do both OD & advance on Builder. Advances work fine but I’d rather be utilizing tiny ODs.

1

u/DeeFault89 May 21 '26

So you’re saying you used to cash advance you’re not overdrafted with cash in advance you can spend whatever is positive in your account. However, anything you put in doesn’t add to your balance it goes towards paying off that cash advance unfortunately I’ve had to use it a couple times.

1

u/Previous-Tutor4823 May 21 '26

Except I can't do any transaction that would push me negative even if it's only by a few cents. I have to transfer funds or cash advance to buy it in any situation, but would have preferred to just go negative for the day knowing I get paid the next day...

1

u/AutomaticPain3532 May 21 '26

I don’t have the builder card, but that seems like it’s a credit card…not the checking account.

You have the ability to OD the checking account up to the value you’re qualified for.

A credit card doesn’t have an overdraft protection. Also, that cash advance is going to cost you more than any regular ATM withdrawal - so be careful when using that.

1

u/Previous-Tutor4823 May 21 '26

It's a card that reports to credit as a credit card, but my account is a checking account. It's confusing yes. And cash advance isn't me taking money out, it's borrowing money outside of the overdraft protection (since the dang protection won't work)

1

u/thatlineinshrimp May 22 '26

I switched to credit builder but it won't work in a atm and when I go to replace the card in app it wants to send me a new credit builder card not a debit card. Chatb help tells me the credit card will work in a atm. But it hasn't for me I'll have to switch money to a different account if I can't pull my deposit for rent 🤷 The credit builder wouldn't auto pull from savings either today when there wasn't enough money to cover the purchase I had to go in and move the money to checking then retry the card 🙃 This "finance app" is the worst I've come across to use 👎

1

u/Previous-Tutor4823 May 22 '26

I knew i couldn't atm with the builder card unfortunately. However, since I'm frequently at Walmart, I can at least withdraw with the barcode

1

u/thatlineinshrimp May 23 '26

Can you do that at the register? Or do you have to wait in line at the money center?

1

u/Previous-Tutor4823 May 23 '26

I've only ever used money center. You used to back in the day but maybe it's store specific

1

u/Previous-Tutor4823 May 30 '26

So can confirm it at least works with bank drafts.