What is an Overdraft Line of Credit?
An Overdraft Line of Credit from Conexus is a smart and flexible financial tool designed to help you avoid the stress of missed payments and costly fees. Unlike traditional loans, this line of credit acts as a safety net for your chequing account, ensuring your payments go through even if you don’t have enough funds. Whether you're covering unexpected expenses or managing gaps in income, the Overdraft Line of Credit provides peace of mind with a predetermined limit and easy repayment options. You’ll only pay interest on the amount you borrow, and repayments are automatically applied when funds are deposited into your account.
Benefits of an Overdraft Line of Credit.
Prevents declined payments
Prevents declined payments, avoiding fees and late charges.
When your chequing account balance runs low, your Overdraft Line of Credit automatically covers the shortfall — avoiding the fees, late charges and hassle of a declined payment.
Covers you when funds run short
Covers purchases and bills when you don’t have enough money in your account.
Whether it’s a bill, a debit purchase or an unexpected expense, your overdraft steps in seamlessly when your account balance isn’t enough — so the transaction still goes through.
Important payments go through
Ensures important payments, like rent or bills, go through on time.
Missing a rent payment or a bill due to insufficient funds can have real consequences. An Overdraft Line of Credit ensures those critical payments are covered, protecting your credit and your peace of mind.
Automatic repayment
Payments are automatically deducted from your account when funds are available.
When you deposit funds into your chequing account, payments are automatically applied to your overdraft balance first, followed by any interest owing — no manual repayment steps required.
Interest only on what you use
You'll pay interest only on the amount you borrow.
You’re only charged interest on the overdraft amount you’ve actually used — not your full available limit — with monthly interest charges applied until the borrowed amount is fully paid back.
Minimum credit limit of $500
The minimum credit limit for a Conexus Overdraft Line of Credit is $500.
The exact amount you can be approved for depends on your financial profile and the Advisor's assessment, with a minimum credit limit of $500 available to eligible members.
How does it work?
An Overdraft Line of Credit gives you access to funds when there isn’t enough money in your chequing account to cover a purchase or payment. Once approved, it works automatically in the background, helping you avoid declined transactions when your account balance falls below zero.
To apply, schedule an appointment with a Conexus Advisor and bring personal identification and proof of income. Your eligibility and approved credit limit will depend on factors such as your income and credit history. The minimum credit limit for a Conexus Overdraft Line of Credit is $500, with the amount you qualify for based on your financial situation and your advisor’s assessment.
Once approved, your overdraft funds are automatically available when you need them. When you deposit money into your chequing account, those funds are automatically applied to your overdraft balance first, followed by any interest owing. You only pay interest on the amount you borrow, with interest charged monthly until the balance is repaid. The longer you carry a balance, the more interest you’ll pay.
Is this right for you?
Right for you if:
- Want to ensure your payments go through even when your account balance is low. An overdraft line of credit helps you avoid late fees and potential penalties.
- Have unpredictable income or occasional cash flow gaps, this product offers a safety net to cover essential payments without stress.
- Want extra confidence. Knowing you have extra funds available for unexpected expenses gives you security, ensuring important bills or purchases are covered on time.
May not be right for you if you:
- Frequently rely on the overdraft line of credit without paying it off quickly, the interest charges could add up, potentially leading to higher debt. A budget review with a Financial Advisor may be a better first step.
- If you struggle with budgeting, the availability of extra funds might encourage overspending. A Savings account or a set amount in a dedicated emergency fund might be a better fit.
- Are looking for long-term financial assistance, an overdraft line of credit may not be the best option due to interest fees. In that case, consider other options like a credit card with a lower interest rate or a line of credit with more flexible terms for larger expenses.
See what you can afford, before you commit.
Common questions.
Here’s what people ask us the most.
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When your chequing account balance isn’t enough to cover a transaction, available funds from your overdraft line of credit are used automatically. You can continue using your account as usual, and deposits to your chequing account are automatically applied to your overdraft balance.
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The minimum credit limit is $500. Your approved limit will depend on factors such as your income, credit history and overall financial situation.
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No. You only pay interest on the amount you actually borrow. If you don't use your overdraft, you won't pay interest on the unused portion of your credit limit.
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When you deposit money into your chequing account, the funds are automatically applied to your outstanding overdraft balance first, followed by any interest owing.
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