topic Re: NUFCU Credit Card - App or no app? in Credit Cards

NUFCU Credit Card - App or no app?

mum4519 — Fri, 09 Nov 2012 17:15:19 GMT

This is University of Nebraska Federal Credit Union. I am an alum of UNL and currently have a personal loan through them that will be paid off next October.

I was speaking to my loan officer today, and she told me about their credit card they have. There are no rewards on the card so when she said that I wasn't intrigued, but she told me other info about it...

6.65% on purchases, balance transfers, and cash advances

No annual fee

No fee for doing a balance transfer or cash advance

So it got me thinking if I should apply or not. I pay my balances in full so interest isn't a big deal, but in case I ever have to finance something large, 6.65% would BY FAR be my lowest APR.

The terms on the card are very appealing to me although there are no rewards. I probably would not use it for my every day card but it would be nice to have.

What do you say...should I app or not?!

Re: NUFCU Credit Card - App or no app?

Duncanrr — Fri, 09 Nov 2012 17:32:25 GMT

It could serve well as an emergency use card. I dont tend to carry a balance but if you had to then the low APR would be more important than the rewards.

Re: NUFCU Credit Card - App or no app?

distantarray — Fri, 09 Nov 2012 17:40:25 GMT

Duncanrr wrote:
It could serve well as an emergency use card. I dont tend to carry a balance but if you had to then the low APR would be more important than the rewards.

+1 since i have a navy federal account I was able to get a house at a great price (cash only deal) I was short 15k and under 6% interest rates and no penalty for convience checks so it worked out perfectly so go for it it helps a lot in emergencies.

Re: NUFCU Credit Card - App or no app?

Benton — Fri, 09 Nov 2012 19:22:08 GMT

mum4519 wrote:
This is University of Nebraska Federal Credit Union. I am an alum of UNL and currently have a personal loan through them that will be paid off next October.

I was speaking to my loan officer today, and she told me about their credit card they have. There are no rewards on the card so when she said that I wasn't intrigued, but she told me other info about it...

6.65% on purchases, balance transfers, and cash advances
No annual fee
No fee for doing a balance transfer or cash advance

So it got me thinking if I should apply or not. I pay my balances in full so interest isn't a big deal, but in case I ever have to finance something large, 6.65% would BY FAR be my lowest APR.

The terms on the card are very appealing to me although there are no rewards. I probably would not use it for my every day card but it would be nice to have.

What do you say...should I app or not?!

Among the best values on the market today. It offers everything you could ask of a "Credit Card"; very low APR for purchases And cash advances without any transaction fees. Hope the purchase and cash advance dollar amounts are equal.

Re: NUFCU Credit Card - App or no app?

webhopper — Fri, 09 Nov 2012 19:53:36 GMT

Agree... this would be a good card to have.... CUs are also less likely to CLD your account for non-activity

Re: NUFCU Credit Card - App or no app?

mum4519 — Fri, 09 Nov 2012 21:03:14 GMT

Yea...she said that they would never close it for non-activity. The interest rate just blows away everything I have so that is my main interest in it.

Re: NUFCU Credit Card - App or no app?

mum4519 — Wed, 14 Nov 2012 22:22:47 GMT

I have a difficult question that I can not figure out for all of you:

I decided to apply for this CC at my credit union and got approved for $3,000.

At the same credit union I have a loan at 10.8% with a payoff of $2,380.

If you saw my before post, the cash advance interest rate is 6.65%, same as purchases as well as balance transfers, with absolutely no fee for doing so.

Would it be beneficial for me to take a cash advance of $2,380 off of the card in order to pay off this loan?

I know cash advances accrue interest daily but I am having the hardest time trying to figure out the amortization schedule on what is more beneficial as to where I would pay less interest? Continuing the loan for $2,380 @ 10.8% with monthly payments being $211 and maturing on 10/21/2013...or taking a cash advance (with no cash advance fee) of $2,380 @ 6.65% and continuing to pay monthly payments of $211.

Any help would be greatly appreciated. Thanks!

PS - I talked to my loan officer at the credit union and she said that is a very good question but she could not amortize it as well so did not have an answer for me.

Re: NUFCU Credit Card - App or no app?

webhopper — Wed, 14 Nov 2012 22:26:24 GMT

mum4519 wrote:
I have a difficult question that I can not figure out for all of you:

I decided to apply for this CC at my credit union and got approved for $3,000.
At the same credit union I have a loan at 10.8% with a payoff of $2,380.
If you saw my before post, the cash advance interest rate is 6.65%, same as purchases as well as balance transfers, with absolutely no fee for doing so.
Would it be beneficial for me to take a cash advance of $2,380 off of the card in order to pay off this loan?

I know cash advances accrue interest daily but I am having the hardest time trying to figure out the amortization schedule on what is more beneficial as to where I would pay less interest? Continuing the loan for $2,380 @ 10.8% with monthly payments being $211 and maturing on 10/21/2013...or taking a cash advance (with no cash advance fee) of $2,380 @ 6.65% and continuing to pay monthly payments of $211.

Any help would be greatly appreciated. Thanks!

PS - I talked to my loan officer at the credit union and she said that is a very good question but she could not amortize it as well so did not have an answer for me.

I would do the cash advance today and pay off the loan... then, instead of paying $211... increase your payments to make the term shorter!

Re: NUFCU Credit Card - App or no app?

mum4519 — Wed, 14 Nov 2012 22:38:07 GMT

Increasing my payment is not a problem.

I'm just curious as if I were to keep my payment the same, at $211, would I be saving money on interest over the next 10-11 months by doing the cash advance?

Thanks again everyone, you have all been very informative!

Oh, on a side note, she said my Experican FICO was a 687...where last October it was a 582! Thanks all!

Re: NUFCU Credit Card - App or no app?

Repo-ed — Wed, 14 Nov 2012 22:55:52 GMT

Man, that's a great APR to have, if you needed to carry a bal

Re: NUFCU Credit Card - App or no app?

mum4519 — Wed, 14 Nov 2012 22:58:08 GMT

You're telling me!

Re: NUFCU Credit Card - App or no app?

Cadillac-XTS — Wed, 14 Nov 2012 23:40:57 GMT

App

Re: NUFCU Credit Card - App or no app?

webhopper — Wed, 14 Nov 2012 23:47:10 GMT

Credit314 wrote:
App

@credit314... the OP in this case has already applied and has been approved for the card. To edit a post feel free to click the arrow at the top right of the box and choose edit reply. Constructive; detailed comments are always welcome :D

Re: NUFCU Credit Card - App or no app?

bs6054 — Thu, 15 Nov 2012 00:32:01 GMT

mum4519 wrote:
I have a difficult question that I can not figure out for all of you:

I decided to apply for this CC at my credit union and got approved for $3,000.
At the same credit union I have a loan at 10.8% with a payoff of $2,380.
If you saw my before post, the cash advance interest rate is 6.65%, same as purchases as well as balance transfers, with absolutely no fee for doing so.
Would it be beneficial for me to take a cash advance of $2,380 off of the card in order to pay off this loan?

I know cash advances accrue interest daily but I am having the hardest time trying to figure out the amortization schedule on what is more beneficial as to where I would pay less interest? Continuing the loan for $2,380 @ 10.8% with monthly payments being $211 and maturing on 10/21/2013...or taking a cash advance (with no cash advance fee) of $2,380 @ 6.65% and continuing to pay monthly payments of $211.

Any help would be greatly appreciated. Thanks!

PS - I talked to my loan officer at the credit union and she said that is a very good question but she could not amortize it as well so did not have an answer for me.

Well, in general a lower interest rate always wins. If you play around with a calculator, such as that on bankrate.com, that implies that you can pay off $2380 in 11 months, at a 10.8% rate, paying around $145 in interest, with a monthly payment of $210+some cents, roughly your 211. Doing the same at 6.6%, you could actually pay $205, pay off in 11 months, and end up paying about $85 in interest. If you keep paying the same, the savings will be more. So, if the balance transfer really is free, this is worth doing, even if a daily vs monthly amortization difference exists, the savings are sufficiently large to cover that.

Re: NUFCU Credit Card - App or no app?

mum4519 — Thu, 15 Nov 2012 03:30:25 GMT

For some reason, which I still need to disprove myself, I figured a cash advance accruing interest daily would end up being more over the course of the next 11 months then a payment with a grace period on interest. Eleven months of daily interest scares me but all in all if I can figure out how to do the math, may end up saving me!

And yes, the cash advance is completely free up to the credit limit and same APR (6.65%) as if I were to make a purchase. By far the best "credit card" I have, only minus a rewards program.

Re: NUFCU Credit Card - App or no app?

bs6054 — Thu, 15 Nov 2012 03:50:07 GMT

mum4519 wrote:
For some reason, which I still need to disprove myself, I figured a cash advance accruing interest daily would end up being more over the course of the next 11 months then a payment with a grace period on interest. Eleven months of daily interest scares me but all in all if I can figure out how to do the math, may end up saving me!

And yes, the cash advance is completely free up to the credit limit and same APR (6.65%) as if I were to make a purchase. By far the best "credit card" I have, only minus a rewards program.

Well, compound interest goes as something like (1+rate/n)^n where n is the the number of times compounded. Doing a quick check, if you made no payments,

2300 (couldn't recall the actual balance) at 6.6% compounded daily would be $2456.91 after one year. If it were compounded monthly, it would be 2,456.48, so the compounding makes very little difference.

In contrast, 2300 at 10.8%, compounded monthly becomes $2561.07

So a big savings. Paying it down reduces the difference of course, but it is still there. Now you would have to do more precise calculations if the choice was say 6.6% compounded daily and 6.7 monthly, but 6.6 to 10.8 is a huge difference, and the naive view, go with the lower rate, works fine here.

Re: NUFCU Credit Card - App or no app?

mum4519 — Thu, 15 Nov 2012 06:33:16 GMT

JUST what I was looking for! Thanks again!