Using HELOC - Overdraft vs manual transfer vs HELOC-check

[tax-novice2]

I have a checking account and a HELOC account and was wondering what is the best way to give checks to external parties.

These are 3 options I am considering -

1. Give a check from checking account. This account is protected for any overdraft by the HELOC account. If the balance in checking account is short, then the overdraft amount is drawn from HELOC directly by the bank.

2. Manually transfer money from HELOC to checking account in advance, when anticipating that checking account will have an overdraw.

3. Give check from HELOC account.

Which one is the best? How does each affect my credit score?

[Anonymous_ · Accepted solution]

It does not negatively impact your credit score when drawing on your HELOC because such loans, although considered "revolving", do not factor into your credit utilization ratio as do regular credit cards.

You should probably do whatever suits you best in terms of writing checks from specific accounts, but the overdraft protection is a nice feature. 

[NCperson]

does the bank charge a convenience fee for automatically transferring the money from the HELOC to the checking account?  that could impact your decision 

[tax-novice2]

BoA does charge a convenience fee, but waives it for platinum members