check-credit plans

check-credit plans, on other hand, are basically a from of installment credit connected with a bank checking account. Banks had loaned some $3 billion in this from at the end of 1976 with 1 out of banks offering such a service. In a variety of forms, These check-credit plans combine elements of cashier 's checks, travelers checks, overdraft banking, and check guarantee programs. One type of check credit provides the individual with a prearranged automatic line of credit, which is activated the moment the individual 's account is overdrawn. The individual uses his regular checking account and regular checks. This means that regular checks will be honored, which otherwise would be returned to the sender.
The other major type of check credit involves plans in which a prearranged line of credit is activated by employing a special checking account and special checks provided by the bank. This is a more prevalent type of check credit than the overdraft type of check credit. About 1,621 banks at the end of 1972 offered some such bank check-credit plan.