I LOVE Psecu - Apppprrrrroveddd!!!

[Anonymous]

txjohn and everyone else,

Sooo.... I called psecu regarding the psl/v - they explained to me what it was (spoke to a L/O) - The L/O said that it is like a LOC with a visa card connected to it. You HAVE to wait to get the card (in my case) before I can get the PSL/V. The l/o told me that as soon as I get the card to call them and they will attach the PSL acct to the CC acct, thus making it two different accounts pulling from one LOC - if i use the PSL the apr is 12.99 and if the CC is used then the 9.99 apr applies. Main reason to do so would be like txjohn mentioned that it would report as 2 different individual TL's with eachone showing as 20k and totaling 40k.

[creditwherecreditisdue]

I feel an itch I refuse to scratch!

[pattycake]

I don't care about their CC's, I just want access to my EX FICO score. 

[Anonymous]

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@Anonymous wrote:

txjohn and everyone else,

Sooo.... I called psecu regarding the psl/v - they explained to me what it was (spoke to a L/O) - The L/O said that it is like a LOC with a visa card connected to it. You HAVE to wait to get the card (in my case) before I can get the PSL/V. The l/o told me that as soon as I get the card to call them and they will attach the PSL acct to the CC acct, thus making it two different accounts pulling from one LOC - if i use the PSL the apr is 12.99 and if the CC is used then the 9.99 apr applies. Main reason to do so would be like txjohn mentioned that it would report as 2 different individual TL's with eachone showing as 20k and totaling 40k.

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Yes, the PSL (LOC) has a 12.9% APR.  However, since the Visa can access it's CL, if you use the Visa as the "spending unit" then you get the Visa rate.

Example:  PSECU has a 3.9% BT offer.  When I go to the BT online page, it shows my entire $20k available for BT at 3.9%.

My understanding is that if I were to charge $20k on my Visa, my purchase rate is 9.9% for the entire amount.

If I write a check, transfer funds from or otherwise "use" the LOC (PSL) directly, then I pay the 12.9.  Thus, IMO, the PSL should only be used through the Visa in order to gain the APR advantage.

[ficus]

So 2 TL's show up on the report when the PSL/Visa setup is established, but do they both read as revolving accounts or does the LOC one reads as something else (like say, a HELOC or whatever)? I've never had an actual LOC type of account with a bank, so I don't know how those usually show up on the reports.

Are there any additional requirements that need to be met for one to have this LOC thing attached to the Visa account when calling the CS department, or is it a two for one deal as long you you request it?

With the APR difference mentioned, it's an obvious no-brainer as to which to use if given the choice, but perhaps I'm not seeing the whole picture here? Can someone explain all the other advantages of having this setup at your disposal, other than having a second TL report?

[ficus]

Considering there is a 3% APR difference, what circumstances would call for you to resort using this LOC vs the Visa account?

[creditwherecreditisdue]

LOC's are and report as revolving TL's. So do HELOC's with a CL < $50K.

Personal loans are installment debt.

[Anonymous]

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@ficus wrote:

Considering there is a 3% APR difference, what circumstances would call for you to resort using this LOC vs the Visa account?

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I wouldn't recommend accessing the CL of the LOC (PSL) diretly, but only through the Visa.  The PSL/Visa has a shared common CL.  There is not a specific limit assigned to either account.

Therefore, IMO the purpose of the LOC is merely to give you the second TL which will keep your utilization low, because it reports your total CL at the same time the Visa reports the CL.  If you max your CL, you would only show 50% useage.

So, use your combo CL through the Visa only, then you get Visa rates (9.9%) or even Visa promo rates (like 3.9% BT) and will never pay the 12.9% APR.

[ficus]

This is definitely a cool concept that I haven't seen being offered by typical banks. You suggest that people get this AFTER they get their Visa card, so I'm assuming that this LOC account is only available only in addition to the Visa account, and NOT as a seperate credit product. This would further prove that this dual TL concept is designed as an incentive. It's really clever from the CU's point of view, because they offer the customer double the pleasure double the fun, yet the CU's liability remains the same. It's really no sweat off their back, as they don't actually extend additional credit.

How does one specifically access the LOC vs Visa, though? By way of ACH and/or writing a check? The reason why I ask is let's say the customer needs to make a payment to some company, and credit cards is not an acceptable method of payment with that company, like in the case of mortgage or HELOC payments, for example. The customer would then be able to draw a check from the LOC, right? In this case, the CU wins by charging 3% more.

That's why I wondered as to what's in it for the CU that they offer this unique dual setup that you don't commonly see around. It's more than just an incentive to the customer. I'd figure that someone could seperately apply for a typical LOC account, not this PSL thing, and get it, but I suppose this PSL thing comes free upon request after you've already spent an inquiry getting a Visa card.

[Anonymous]

Actually, you can access the LOC through the Visa for each of your scenarios.

You can do an online transfer from Visa to Checking.

You can set up Visa as your overdraft protection account.

You can use a Visa Convenience Check.

Remember, your VISA will have the FULL CL.  You don't have to access the LOC directly.  YOu have a $20k CL which is attached to the LOC and VISA.  If you went online and transferred from the LOC to checking, you'd pay LOC rates.  But why do that when you can access the same CL through the Visa.

If you do end up getting a balance that shows under the LOC, you can actually do an online transfer from Visa to LOC.  Again, same CL but just an "accounting" issue on where the balance registers and thus rate charged.

You have 2 TL's, but you only have 1 CL.  Don't allow any balance to accumulate under the LOC, only Visa and you only pay Visa rates.