Can someone please explain to me how the CLOC work?

[RCFL]

I understand the basic that this "Checking Line of Credit" from NFCU will covers the overdraft and prevent a decline in debit card transactions when the account doesn't have enough fund. I don't think I'll ever need it but am a little curious as to how it works. I see that the max. amount i can apply for is 15k - say if i applied for 15k CLOC and assume that I'll be approved. Is NFCU start charging interest right away? or the money will be deposited in the account? or the money is just 'there' just in case if i dont have enough fund in the account? 

[RCFL]

Disregard. I found what i was looking for after reading the posts from others on here. Mod, please delete this post if possible. thanks.

[sarge12]

It is a preaproved line of credit that is available on the checking account, sort of like a 0 balance credit card. If a charge or check arrives at the credit union or bank, and there is not enough funds available in the checking account to cover it, the CLOC makes a loan to the account, usually in 100 dollar increments to bring th balance back into the positive. The CLOC account will then be charged interest, and will have a minimum monthly payment just like a credit card does, or you can PIF, and only be charged interest for the number of days it had a balance. It is more like getting a cash advance on a credit card in that it does not have a grace period such that you can avoid interest entirely. I know the 8000 dollar CLOC at my credit union is fairly low 8.99%, which is also the interest on my credit card there, which is unusual in that it is 8.99% on both purchases and cash advances...I love my credit union, but I have only used CLOC once and PIF within days. I do know my CLOC causes an annual HP by the credit union to verify that my profile still meets the lending credit requirements for the CLOC. At my credit union if a charge comes in without enough funds in chacking, they first will transfer funds from savings, if there is not enough there either, the CLOC puts enough in checking in 100 dollar increments until I once again have a positive checking account balance