Navy FCU Line of Credit vs Personal Loan

[jhb]

Hello everyone,

I was just approved for a personal loan through NFCU for $10,000 at 18%. However, I also have their Line of Credit for $15,000. Which of the two is the way to go for the $10,000? My APR for the Line of Credit according to their website is %15.9, but a Representative just told me it's %2 of the whole balance, which has now confused me. The personal loan check will be here tomorrow via FedEx, so now I come to you all for advice. Thanks.  

[jbsea]

that is how much your payment would be when you use your CLOC.  So lets say you spent $10,000 on you CLOC your payment would be $200.00

[jhb]

So it doesn't really matter which one I use right? I thought I read here a few years ago that the NFCU LOC should be the last resort, after a personal loan.

[jbsea]

Well it is there for you to use but I wouldn't use it.  If you already have the personal loan use that.  If you use you loc then it would affect your utility in a negative way and you would see your score drop. 

[score_building]

18% is a very high rate to even consider, unless perhaps in exceptional circumstance. Request APRD on CLOC in any case (lowest available rate is 13.9).

Just now seeing scores are probably a limiting factor for better rates or APRD, by any chance can you bolster them prior to loan and/or repay this one (at 18%) instantly?