Getting an overdraft charge is a frustrating thing that happens when the money in a checking account goes below zero.

These charges vary from bank to bank, but most of the time they are a nice chunk of change. Even the most financially savvy person can juggle too many charges at once, causing their overall balance to dip below zero.

Some of these accounts are even reported to the credit bureaus, thus negatively affecting your credit score; which determines whether or not you will get approved for important loans such as a mortgage.

A November 21, 2006 article by Dana Dratch of Bankrate.com, “Using credit card for overdraft protection,” discusses how this system works.

“It's a little known industry perk: If you have a checking account and credit card with the same institution, you may be able to link the two and use your credit card as overdraft protection. Whether you want to could be another issue.”

“Overdraft fees have always been a source of ire for consumers. A simple math error, a check cashed ‘too soon’ or a forgotten, prearranged electronic payment can result in a fee that usually runs from $20 to $35 for each transaction. And if you have a lot of traffic in your account -- multiple checks or cash card purchases before you set things right -- those fees can multiply.”

If you have a savings account or money market account linked to your checking account then you already have adequate protection.

If your checking account goes below zero, money will be automatically moved into the checking account to cover any outstanding expenses, thus eliminating any overdraft fees that may occur.

A credit card protection for these fees works a bit differently.

“Wachovia has offered the option of using its cards for overdraft protection since 1992, says Mary Beth Navarro, the institution's retail bank customer service manager. When the card is tapped to cover an overdraft, there is a $10 fee. While the overdraft is treated as a cash advance, the APR is the same as the credit card and any cash-advance fees are waived, she says.”

“‘It just gives customers another option,’ says Navarro. ‘Not every customer has a savings or money market account. And it's less expensive than if you were to have an overdraft.’”

Most experts agree that it is only sensible to do this if the interest rates on the credit card are not outrageous.

Before you decide to enact a program like this, be sure that you have analyzed all of your options first, and that having a credit card in place is the cheapest option.

“‘Consumers should definitely not assume a credit card is the cheapest option,’ says Eric Halperin, director of the Washington, D.C., office of the Center for Responsible Lending. ‘A line of credit is probably cheaper,’ he says, especially if the bank uses the credit card to collect a cash advance. At the same time, using a credit card is probably going to be less expensive than incurring regular overdraft fees, he says.”

Talk to your banker to see what options you have and if the line of credit you have now is appropriate for your spending habits.