topic Re: Is LOC different from the Credit line you get when opening a new CC? in Credit Card Applications

Is LOC different from the Credit line you get when opening a new CC?

EdwardMH — Sat, 14 Feb 2015 19:30:04 GMT

I saw a discussion on another users post telling them to rquest the LOC on a Navy Federal credit card they were just approaved for but I am new to rebuilding my Credit Score I just got approved for a Navy Federal Cash Rewards card for $8,500 interest rate is 15.15%. What is this LOC they talking about? Is it the amount of Credit on your card or something else/extra? Are they talking about asking for a Credit Line increase? When I applied for the Card they suggested I ask for an increase in 6-12 months. or is LOC something else? I also plan to put $5,000 - $12,000 (have $1,500 so far) into a special savings account over time and attatch a Navy Federal nRewards secured credit card to it to use as an emergency fund unless I should try for a real credit card instead?? Also how long should I wait before getting another?

Re: Is LOC different from the Credit line you get when opening a new CC?

b_diddy — Sat, 14 Feb 2015 20:16:12 GMT

LOC = Line of Credit. This is typically separate and apart from any CC for which you are approved. Simplest way to describe it is as cash (installment loan) you can access as needed.

Re: Is LOC different from the Credit line you get when opening a new CC?

gdale6 — Sat, 14 Feb 2015 22:33:45 GMT

@EdwardMH wrote:
I saw a discussion on another users post telling them to rquest the LOC on a Navy Federal credit card they were just approaved for but I am new to rebuilding my Credit Score I just got approved for a Navy Federal Cash Rewards card for $8,500 interest rate is 15.15%. What is this LOC they talking about? Is it the amount of Credit on your card or something else/extra? Are they talking about asking for a Credit Line increase? When I applied for the Card they suggested I ask for an increase in 6-12 months. or is LOC something else? I also plan to put $5,000 - $12,000 (have $1,500 so far) into a special savings account over time and attatch a Navy Federal nRewards secured credit card to it to use as an emergency fund unless I should try for a real credit card instead?? Also how long should I wait before getting another?

Grats on your new Navy card

LOC is the NavCheck, max is 15K. Its basically an overdraft line of credit that you can access at any time.

Re: Is LOC different from the Credit line you get when opening a new CC?

EdwardMH — Sat, 14 Feb 2015 23:30:26 GMT

Thanks, is this something I should ask about? Will it help my credit score or am I better off going for the Secured credit card or another real Credit card?

Re: Is LOC different from the Credit line you get when opening a new CC?

gdale6 — Sat, 14 Feb 2015 23:50:06 GMT

@EdwardMH wrote:
Thanks, is this something I should ask about? Will it help my credit score or am I better off going for the Secured credit card or another real Credit card?

I would go for the NavCheck before I got a secured card, it reports as a revolving credit line just line a CC does.

Re: Is LOC different from the Credit line you get when opening a new CC?

EdwardMH — Sun, 15 Feb 2015 01:34:41 GMT

Since I just got the credit card this week how long should I wait so as not to hurt my credit score seeking too much credit at one time?

Re: Is LOC different from the Credit line you get when opening a new CC?

EdwardMH — Sun, 15 Feb 2015 01:51:47 GMT

Ok Just applied for $15,000 LOC online it came back approved but no information yet for how much, what interest rate and such. got email saying I will get ther papers in 5-7 days. Man I hope I am not messing up my credit LOL trying real hard to raise my Score to get my first Home.

Re: Is LOC different from the Credit line you get when opening a new CC?

Anonymous — Sun, 15 Feb 2015 01:53:28 GMT

@EdwardMH wrote:
Ok Just applied for $15,000 LOC online it came back approved but no information yet for how much, what interest rate and such. got email saying I will get ther papers in 5-7 days. Man I hope I am not messing up my credit LOL trying real hard to raise my Score to get my first Home.

You are on the right track and not messing up anything. Along as you don't plan to max them out, you should be fine. Congrats on the approval...

Re: Is LOC different from the Credit line you get when opening a new CC?

Anonymous — Sun, 15 Feb 2015 01:57:46 GMT

Congrats on the Navcheck approval and be assured, it won't hurt your credit score. You probably got the full $15K if that's what you applied for

Re: Is LOC different from the Credit line you get when opening a new CC?

EdwardMH — Sun, 15 Feb 2015 01:59:39 GMT

I am still confused on how a LOC differs from a Credit Card... Did I just take out a $15,000 loan I have to pay back? Oh and IRISH how did you get the Credit Score image into your sig I like it.

Re: Is LOC different from the Credit line you get when opening a new CC?

Anonymous — Sun, 15 Feb 2015 02:01:31 GMT

@EdwardMH wrote:
I am still confused on how a LOC differs from a Credit Card... Did I just take out a $15,000 loan I have to pay back?

No, it's not a personal loan. The $15K sits there and you can use it all or any part of it when you need it. Only then would have to start paying it back. Think about it as a large overdraft protection (which it is) but also an on demand loan if needed. They will issue you LOC checks that you can pay bills with etc if needed or you can deposit a check into an external account for cash.

Re: Is LOC different from the Credit line you get when opening a new CC?

Anonymous — Sun, 15 Feb 2015 02:03:22 GMT

Here's the actual NFCU explanation:

With Checking Line of Credit,1 your checking account is covered. It protects you from overdrafts and from having transactions denied for non-sufficient funds. Plus, it's also an easy and convenient line of credit when you need quick access to cash.

Automatic protection with no per-item overdraft fees
Access cash when you need it for large or unexpected expenses
Flexible repayment options
A low interest rate with monthly payments that are 2% of the principal loan balance or $20, whichever is higher. Current rate is as low as 13.9% APR.2

Re: Is LOC different from the Credit line you get when opening a new CC?

EdwardMH — Sun, 15 Feb 2015 02:05:15 GMT

Ok what if I do not touch it at all? Can a Debit/secured credit card be attatched to it? Sorry for all the noob questions but I am learning and feel a bit over whelmed and alone at times. My Credit Score did take a slight bump up today from 652 to 671.

Re: Is LOC different from the Credit line you get when opening a new CC?

Anonymous — Sun, 15 Feb 2015 02:08:48 GMT

@EdwardMH wrote:
Ok what if I do not touch it at all? Can a Debit/secured credit card be attatched to it? Sorry for all the noob questions but I am learning and feel a bit over whelmed and alone at times. My Credit Score did take a slight bump up today from 652 to 671.

If you don't touch it, nothing happens. No, a debit/secured card can't be attached to it and I'm not sure why you want to. How would that help you? No need to apologize for the questions, that's how we all learn. Good on the score jump.

Re: Is LOC different from the Credit line you get when opening a new CC?

EdwardMH — Sun, 15 Feb 2015 02:15:17 GMT

I assume the goal to raise credit is to get 1-4 credit cards use the cautiously to raise your credit scor then slowly try to replace them with card that have Higher limits but lower interest rates? Or have the ones you got adjusted that way? I am hoping to get to 720+ as fast as I can. I can get a VA Homeloan with a 620 score but I am hoping with highter score I can get a better Morgtage intrest rate.

Re: Is LOC different from the Credit line you get when opening a new CC?

Anonymous — Sun, 15 Feb 2015 02:19:49 GMT

@EdwardMH wrote:
I assume the goal to raise credit is to get 1-4 credit cards use the cautiously to raise your credit scor then slowly try to replace them with card that have Higher limits but lower interest rates? Or have the ones you got adjusted that way? I am hoping to get to 720+ as fast as I can. I can get a VA Homeloan with a 620 score but I am hoping with highter score I can get a better Morgtage intrest rate.

You keep mentioning a secured card. NFCU just approved you for a LOC and a credit card with $8,500 limit. Why do you keep bringing a secure card up? Do you want one? What am I missing here?

Re: Is LOC different from the Credit line you get when opening a new CC?

EdwardMH — Sun, 15 Feb 2015 02:21:38 GMT

I am putting $950 a month into a seperate savings account for a Emergency fund I thought a Secured card attatched to it would be a easy way to manage my emergency fund.

Re: Is LOC different from the Credit line you get when opening a new CC?

Anonymous — Sun, 15 Feb 2015 02:22:07 GMT

@Anonymous wrote:
@EdwardMH wrote:
I assume the goal to raise credit is to get 1-4 credit cards use the cautiously to raise your credit scor then slowly try to replace them with card that have Higher limits but lower interest rates? Or have the ones you got adjusted that way? I am hoping to get to 720+ as fast as I can. I can get a VA Homeloan with a 620 score but I am hoping with highter score I can get a better Morgtage intrest rate.
You keep mentioning a secured card. NFCU just approved you for a LOC and a credit card with $8,500 limit. Why do you keep bringing a secure card up? Do you want one? What am I missing here?

+1. You don't need a secured card now to improve your scores

Re: Is LOC different from the Credit line you get when opening a new CC?

Anonymous — Sun, 15 Feb 2015 02:27:48 GMT

@EdwardMH wrote:
I am putting $950 a month into a seperate savings account for a Emergency fund I thought a Secured card attatched to it would be a easy way to manage my emergency fund.

@EdwardMH,

If you are putting that much away every month in a savings account, what you need attached to it is a debit card. You should be able to get one with your savings linked to it. A secured card is a credit card that you have to put money upfront to qualify for. That been said, you are doing fine and have your brain cells remove that secure card thought from your head.

Re: Is LOC different from the Credit line you get when opening a new CC?

EdwardMH — Sun, 15 Feb 2015 02:28:13 GMT

Ok.. It was suggested that I get 3-5 differant types/location creditcards so I was thinking the Bestbuy, the Cash rewards and a nRewards Secured (From Navy Federal even though I have no knowledge or interest in credit cards wit Points what ever they are). and then try for a CC or 2 from USAA. This is confussing to me as I cut up all my old Credit and debit cards 2 years ago when I was following Dave Ramsey to get out of Debt wich I almost am now Just have $8,589 left on my car and I will be debt free. I am afraid to pay off the car as it is now my oldest revolving account though it would put another $500 in my pocket that I could put with the $950 I put in savings every month, THEN I have to start thinking about some kind of investment account, sadly not able to do a IRA as all my income is Tax Free (VA Disability and SSDI)