- 1). Review the terms for your current overdraft account. If it is a credit account it will have a rate and monthly payment. Find out what the interest rate is, what the term is (length) and if there are any applicable fees. You'll want a new credit account to be more beneficial than your current account.
- 2). Access a copy of your credit report. This will help guide you as you seek new financing (see the site in Resources). This will provide you with a free credit report. You can also pay for a copy of your FICO score, a three-digit number between 300 and 850. Scores above 720 are excellent; scores below 600 are poor.
- 3). Research new credit accounts. This can include new credit cards or personal loans. Make sure the new account allows for balance transfers. Review each prospective account's balance transfer policies and fees. You do not want to rack up enormous charges simply for moving one balance onto the account.
- 4). Open the new account. Use one of the checks provided for balance transfer. Write a check in the full amount due for the overdraft account (contact your bank for a payoff amount). Some companies allow for electronic transfers. Contact each creditor to discuss this possibility.
- 5). Obtain a paid-in-full letter from your original bank. This will confirm that your overdraft balance is satisfied. Begin paying on the new account as agreed.
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