Overdraft Line of Credit — First Horizon National Corporation

The Overdraft Line of Credit (ODLOC) from First Horizon National Corporation is a flexible, short-term credit solution designed to protect your deposit account from returned items, unpaid transactions, and unexpected cash shortfalls. It functions as a standby source of funds linked to your checking account, automatically covering overdrafts up to an approved limit so that you maintain payment continuity and avoid embarrassment or interruption for bills, payroll, and everyday purchases.

How it works

Once approved, the ODLOC is attached to your qualifying deposit account. When an item would otherwise create a negative balance, the line is accessed to pay that item. You are then responsible for repaying the advance plus any applicable fees and interest according to the terms of your agreement. The line typically renews annually, subject to review, and can be increased or decreased based on account activity and creditworthiness.

Key features

• Automatic coverage: Avoid returned checks and declined transactions with immediate funding when you need it.
• Revolving access: Borrow up to your approved limit, repay, and borrow again without reapplying, subject to annual review.
• Competitive pricing: Variable interest and applicable service charges are presented in your disclosure; pricing may vary by credit profile.
• Linked convenience: Seamless integration with checking makes management simple and direct.
• Transparency: Clear disclosures explain how advances are calculated, interest accrues, and fees apply.

Benefits

The ODLOC offers practical advantages for both personal and small business customers. It reduces the risk of merchant declines and returned items, helps preserve credit reputation, and provides peace of mind when cash flow timing is unpredictable. Because it is a line of credit rather than a loan tied to a fixed schedule, you control when to borrow and how quickly to repay, making it a convenient buffer for seasonal or irregular expenses.

Who is eligible

Eligibility generally depends on a combination of factors including account history with First Horizon, creditworthiness, income stability, and enrollment in a qualifying deposit account. Customers with a consistent relationship and positive account behaviors are more likely to be approved. Business customers often need to demonstrate predictable cash flow and provide additional documentation to support underwriting.

Typical terms and costs

Terms for an Overdraft Line of Credit commonly include a maximum credit limit, a periodic interest rate or annual percentage rate that may be variable, and a per-item or monthly fee in addition to interest in some cases. Interest is usually charged only on the outstanding balance and accrues from the date of advance. Exact rates, fees, and collateral requirements—if any—are provided in the account disclosures and may differ by customer.

How to apply and manage your line

1. Review eligibility requirements and disclosures for the overdraft line product.
2. Complete an application, which may request personal or business financial information and consent to a credit inquiry.
3. Upon approval, the credit line is linked to your checking account and starts providing coverage.
4. Monitor activity through online banking or statements to track advances, fees, and payoff amounts.
5. Make repayments via standard deposits, transfers, or scheduled payments to reduce interest costs and restore available credit.

Best practices and tips

• Keep a buffer: maintain a working balance to minimize reliance on overdraft advances and interest costs.
• Check alerts: enable account notifications for low balance and overdraft events to act quickly.
• Schedule transfers: if you anticipate a shortfall, plan transfers or deposits to avoid frequent borrowing.
• Understand billing: review periodic statements to confirm interest calculations and fees.
• Consider alternatives: for frequent shortfalls, a small term loan or ongoing line of credit might be more cost-effective.

Security and customer support

The overdraft product is administered with the same security and privacy practices applied to other deposit and credit services. First Horizon provides customer support to answer questions about advances, fees, dispute transactions, and payment arrangements. Customers can access account activity and alerts through online and mobile banking tools to stay informed and secure.

Frequently asked questions

Q: Will the ODLOC prevent all declines and returned items?
A: It covers eligible overdrafts up to your approved limit, but certain transactions or account statuses may not be eligible. Review your terms to understand covered items.

Q: How is interest calculated?
A: Interest is typically charged on the outstanding advance from the date of the transaction until repaid. The specific method and rate appear in your disclosure documents.

Q: Can I opt out?
A: Customers can choose whether to opt in for overdraft coverage features. Opting out may result in declined transactions when insufficient funds are present.

Conclusion

An Overdraft Line of Credit at First Horizon National Corporation provides a practical, revolving safety net for managing short-term cash flow gaps. By combining automatic coverage with transparent terms and account integration, it helps customers avoid returned items and maintain financial continuity. Prospective applicants should review the product disclosures, understand the pricing and repayment terms, and consider how this option fits their overall cash management strategy.

Address Bank: Memphis, Tennessee, U.S.
Bank: First Horizon National Corporation
Headquarters: Memphis
Products: Loans & Credit
Type: Overdraft Line of Credit