NFCU.....CLOC & BT

[Anonymous]

I was approved for 15k CLOC....Two years ago I went thru cancer treatments and racked up a little debt. (CANCER FREE TODAY).......I am considering using the CLOC as a means to pay off SOME of the higher interest debt CC's. As a finacial genius goes, I am not, so...I am looking for some solid advice and experience if using the CLOC for this is a benefit to my overall credit health.... I will continue to make payments on all my accts, and none are behind, thank god. My UTIL is about 15%. I recently joined NFCU and also wonder if a BT to CLOC will hinder my approval for a CLI on my Go Rewards CC once I am at the 91 day mark.  Thanks in advance to all you credit gurus that have helped me in so many ways. 

[CreditInspired]

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@Anonymous wrote:

I was approved for 15k CLOC....Two years ago I went thru cancer treatments and racked up a little debt. (CANCER FREE TODAY).......I am considering using the CLOC as a means to pay off SOME of the higher interest debt CC's. As a finacial genius goes, I am not, so...I am looking for some solid advice and experience if using the CLOC for this is a benefit to my overall credit health.... I will continue to make payments on all my accts, and none are behind, thank god. My UTIL is about 15%. I recently joined NFCU and also wonder if a BT to CLOC will hinder my approval for a CLI on my Go Rewards CC once I am at the 91 day mark.  Thanks in advance to all you credit gurus that have helped me in so many ways. 

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Congrats meatman on being cancer free.

Not sure I understand your question, but I'll try to provide answers to what I think you're asking. First, you cannot pay a NFCU CC with the NFCU CLOC. Second, if you are talking about paying off another bank's higher interest CC, you don't BT to CLOC. Since the CLOC is tied to your NFCU checking account, you just write a check to pay off another banker's CC debt. This more preferable because it is not considered as a cash advance so interest doesn't start the day the CC payment posts to your account. You have a grace period as with a CC and there is no BT fee because it's not a BT. Also, if your CLOC APR is lower, it is absolutely better to pay off the other bank's higher APR cards. I don't consider myself a guru either so hopefully other experts will come along and provide other info.

[SouthJamaica]

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@Anonymous wrote:

I was approved for 15k CLOC....Two years ago I went thru cancer treatments and racked up a little debt. (CANCER FREE TODAY).......I am considering using the CLOC as a means to pay off SOME of the higher interest debt CC's. As a finacial genius goes, I am not, so...I am looking for some solid advice and experience if using the CLOC for this is a benefit to my overall credit health.... I will continue to make payments on all my accts, and none are behind, thank god. My UTIL is about 15%. I recently joined NFCU and also wonder if a BT to CLOC will hinder my approval for a CLI on my Go Rewards CC once I am at the 91 day mark.  Thanks in advance to all you credit gurus that have helped me in so many ways. 

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It's not a benefit to your credit score but if it's a lower rate than what you're paying it's a benefit to your pocketbook.

If you reduce the number of revolving accounts reporting a balance that can often help your score.

[Anonymous]

Thanks fellas.....Do you guys think by paying off a few higher int rate CC with the CLOC...SAY .. 2500-3000 worth, will have any negative impact when I request CLI on my GoRewards card, IF the CLOC is not PIF by then?

[K-in-Boston]

Posting on phone so I can't quote, but I do just want to clarify that Navy's CLOC has zero grace period. I have not used mine (no reason, even though I got the lowest rate it's still higher than many of my cards), but I did ask that question directly when speaking with them during my 20 minute or so welcome and orientation call. The CLOC interest is compounded daily.

OP, I don't think it would hurt your chances of a CLI but I would certainly look at what else is in your wallet to see if you had any 0% or just plain low APR offers first before going the CLOC route.

[SouthJamaica]

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@Anonymous wrote:

Thanks fellas.....Do you guys think by paying off a few higher int rate CC with the CLOC...SAY .. 2500-3000 worth, will have any negative impact when I request CLI on my GoRewards card, IF the CLOC is not PIF by then?

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No I don't think it would have any negative impact at all.