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Was not that long ago that I got approved for NFCU Checking line of credit.
Once they processed my signed paperwork I had access to the line. I think within a week after the account showed up online I had checks in hand they auto sent me.
The longest part of the whole process was that they snail mail the promisory papers and you have to snail mail back. But even that only took slightly over a week end to end.
I like using the LOC, it's pretty effective to have. For me I use it every way possible. The way I have used it the most is just pay all my bill let it hit the LOC and then pay the LOC off. Usually this free's me up from not having to worry about missing payments or forgetting to be honest. I use and abuse this thing and never had to worry about it. Since this doesnt count towards credit % it was also a tool I used earlier this year to dump all my store CC debt onto it so that I can close all the store cards and some regular cards I didn't use any longer. From 45% cc to 18% doing that also gave me a huge boost on my CR since I had no personal, auto or mortgage loans on my report, so I now had a even mix of debt, between cc, LOC and my student loans.
There is so many useful ways to use the LOC, I think this product is better than having to run around looking for a personal loan, since it acts like one and it never goes away. I don't know why people don't use it much on here but this thing is better than most products especially those who have a long list of payments to make.
@JustcallmeTM wrote:I like using the LOC, it's pretty effective to have. For me I use it every way possible. The way I have used it the most is just pay all my bill let it hit the LOC and then pay the LOC off. Usually this free's me up from not having to worry about missing payments or forgetting to be honest. I use and abuse this thing and never had to worry about it. Since this doesnt count towards credit % it was also a tool I used earlier this year to dump all my store CC debt onto it so that I can close all the store cards and some regular cards I didn't use any longer. From 45% cc to 18% doing that also gave me a huge boost on my CR since I had no personal, auto or mortgage loans on my report, so I now had a even mix of debt, between cc, LOC and my student loans.
There is so many useful ways to use the LOC, I think this product is better than having to run around looking for a personal loan, since it acts like one and it never goes away. I don't know why people don't use it much on here but this thing is better than most products especially those who have a long list of payments to make.
So when you use this, do you set it up from OC to pull straight from your LOC or your checking account?
I was told that this count towards Revolving so it's included on UTI. How much was your initial CC debt when you used it? I dont want to scare them off it I use it and write myself a hefty check right off the bat after it was just opened?
@Aduke1122 wrote:
And im kind of confused about if they have changed the way you can access the LOC , when I was married to my X he was in the Navy he had a CLOC with them and I swear I thought we could access it by using our debit card back them , there was an option for checking , savings , and credit . Plus we had checks , but if we just used our checking acct and didn't have funds to cover it automatically came out of the LOC. Now this was well over 10 years ago so if anyone can chime in that may know for sure if im not remembering right I would appreciate it.
I talked with a Navy Federal representative pretty extensively about the CLOC and Navchecks yesterday just so I could understand how it all worked.
There are two ways to draw from your CLOC: use your Visa debit card and actually "overdraw" your checking account, or write a Navcheck which draws directly from the CLOC and does not show up under your checking account interface, but shows up under the CLOC area of your online account.
If I did decide to use the Navy Federal CLOC, I would definitely choose the Navchecks option instead of the Visa debit card.
The reason is that the Visa debit card temporarily shows your account as "overdrawn" for a full day, then it shows the CLOC amount pulled over the next day.
I just don't like the idea of overdrawing my account, even if I know if is pulling from the CLOC and the "overdrawn" status will be corrected the next day. It just goes counter to the way I've always managed my finances.
The rep told me that the Navchecks draw directly from the CLOC and don't even show up under the checking account - they show up under the CLOC as they draw directly from that. No overdrawn status occurs.
I can write a Navcheck to myself, and cash it at my bank, or use "mobile deposit" and deposit it into my account at another credit union.
Two of my credit unions have immediate credit for mobile deposits, so that would work well.
My other credit union has a much lower rate for my PLOC, so I most likely would use that first if needed.
Navchecks are the option I would choose if needed for NFCU.
@JustcallmeTM wrote:
Since this doesnt count towards credit % it was also a tool I used earlier this year to dump all my store CC debt onto it so that I can close all the store cards and some regular cards I didn't use any longer.
The CLOC actually shows up on your credit reports under revolving and it does count toward credit utilization percentage, unless you pay it off in a week or two before it hits your reports for the month.
Glad it works for you, but 14% interest seems high to me and the interest starts to accumulate the day you utilize the CLOC. It seems if you are going to pay it off in 3 weeks anyway, as you mention that you do, that the better option would be to draw from a 0% offer on a credit card and then pay that off in your same three week time frame. Or choose to take longer if needed, since it is at 0%. Just a thought.
@Anonymous wrote:
Great information! Thank you! Do you know if you need to settle a debt using the NaVCheck and it's quite large $6000, do you need to call? or if you have to make 2 big payments $2,000 and $4,000? my account is brand new (2 days old literally) and didn't want to spook them?!
I don't think with any lender that I would recommend using a large portion of the credit line when your account is two days old.