topic Re: UPDATE: Use and Availability of NaVChecks from NFCU in Personal Finance

UPDATE: Use and Availability of NaVChecks from NFCU

Anonymous — Wed, 10 Aug 2016 06:47:18 GMT

All:

Once you sign the promissory note at the branch for NaVCheck, how quickly can you access that funds? I'm asking because I took out a loan from Springleaf last Friday because I had NO Go from Sofi or Lendingclub so went ahead and bite the bullet. But the APR is so high anyway, they have 7 days satisfaction guaranteed. I haven't cash their check yet so I was wondering, if I go to the branch tomorrow at NFCU and sign the papers for NaVCheck will I be able to take the funds there right away? or do I need to wait for the check they send out? Thanks!

UPDATE 8/8/16: So I went to the branch and signed the Promissory note today. I was told that it will not reflect on my account in about 24-48 hours. But she did give me some temporary checks which I can use as soon as the credit shows on the account. I'll let you folks know if it shows up tomorrow.

UPDATE 8/10/16: So it took 2 days for NaVCheck to finally show up on my account.

Has anyone used this feature? I'm always afraid to use high credit limit account due to unnecessary AR....

Re: Use and Availability of NaVChecks from NFCU

Aduke1122 — Sun, 07 Aug 2016 18:52:34 GMT

I am almost certain it is available as soon as you sign the paper work .

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Sun, 07 Aug 2016 19:02:47 GMT

Do you need to request for Navy Federal to mail you Navchecks if you have no branch nearby?

I have a PLOC with a different credit union that has a better APR, so I may never use my Navy Federal CLOC, but good to know the procedure if anyone can chime in.

Re: Use and Availability of NaVChecks from NFCU

CH-7-Mission-Accomplished — Sun, 07 Aug 2016 19:23:22 GMT

They can just cut you a counter check on the spot (temporary check).

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Sun, 07 Aug 2016 19:25:54 GMT

What if there is no branch nearby?

Also, are Navchecks different than the regular checks attached to the account?

Re: Use and Availability of NaVChecks from NFCU

Aduke1122 — Sun, 07 Aug 2016 19:29:33 GMT

They sent them my sister in the mail., even thought she has a branch near by . It took a few weeks I believe to get them.

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Sun, 07 Aug 2016 19:32:31 GMT

Yep, it's immediate
If you're at a branch, you can get a counter check, then if you request, you'll get a checkbook, just like a regular checkbook going forward... exactly like e regular checkbook, except just above the signature line it says Line of Credit.
You can also just use your regular RED Debit card (ATM card) as a de facto new credit card, if the place you're trying to pay takes card payments.

As I write, this it Dawn's on me that of course you can also just write a regular check, because obviously the CLOC will cover it, anyway.

The difference between the LOC checks are, they immediately pull from your LOC as a loan...
Whereas your regular checks or ATM will pull from available funds in your checking 1st before putting you in debt....

Which is a cool thing to do, for them to allow you to control when and if you're borrowing money.

Also if you owe money and deposit a check, one might assume that your account would be in the negative and Navy would recoup the 'overdraft' but no... you control the payback your account never goes negative, like other overdraft products.... it's truly just a LOC connectly to checking but won't actually overdraft your account.

One last FYI, which I think is good to know Friday afternoon transactions don't process, internally until COB with the following Monday's business....this can be HUGE because essentially you get FREE float from Friday to Monday meaning % doesn't START till Tuesday on a transaction you ran on Friday

That's a half a week FREE loan if you get it back quickly or even by the following Friday you only have half a week worth if %....

Point being Friday afternoon (the weekend) is the day to initiate LOC pulls because you get about half a week of Free float....

Btw, if your on the Left Coast like me.. Friday afternoon is just after lunch because of the time difference😂so it's Free money weekend by 1pm Cali time just FYI when budgeting usage and payback.

Re: Use and Availability of NaVChecks from NFCU

Aduke1122 — Sun, 07 Aug 2016 19:33:04 GMT

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.

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Sun, 07 Aug 2016 23:22:36 GMT

That is right Aduke minus the ckg/save option thing

It's attached to you red debit card, as you mentioned if you overdraft it covers

The only difference is
a) you can go to a teller and skip over zero-ing out your checking that option isn't available if using ATM

B) Same thing with regular checks
1st your available funds will zero out THEN pull from LOC

If you use you LOC checks....it doesn't zero out your checking it goes immediately to the LOC

Their thinking is unless you make it clear they will use your available funds in checking prior to adding debt unless you make it clear by requesting it from a teller or clearly using your LOC checks.

So swiping your debit or using your debit ad credit or writing a regular check or an ACH pull all will use available funds 1st then go against your LOC as a backup....unless you do one of the above.

As, I shared earlier just so ppl don't mess up thinking at a deposit will pay your LOC or be eaten by the negative balance of an overdraft... luckily Navy doesn't do that.

You must make the payment as a separate transaction which is great because you don't run into depositing a check to have it eaten up by a negative overdraft like elsewhere.

I was leery about depositing with a balance but found out how they do it... it acts basically like another CC with more flexibility... Love it

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Sun, 07 Aug 2016 23:28:56 GMT

@Anonymous wrote:
That is right Aduke minus the ckg/save option thing

It's attached to you red debit card, as you mentioned if you overdraft it covers

The only difference is
a) you can go to a teller and skip over zero-ing out your checking that option isn't available if using ATM

B) Same thing with regular checks
1st your available funds will zero out THEN pull from LOC

If you use you LOC checks....it doesn't zero out your checking it goes immediately to the LOC

Their thinking is unless you make it clear they will use your available funds in checking prior to adding debt unless you make it clear by requesting it from a teller or clearly using your LOC checks.

So swiping your debit or using your debit ad credit or writing a regular check or an ACH pull all will use available funds 1st then go against your LOC as a backup....unless you do one of the above.

As, I shared earlier just so ppl don't mess up thinking at a deposit will pay your LOC or be eaten by the negative balance of an overdraft... luckily Navy doesn't do that.

You must make the payment as a separate transaction which is great because you don't run into depositing a check to have it eaten up by a negative overdraft like elsewhere.

I was leery about depositing with a balance but found out how they do it... it acts basically like another CC with more flexibility... Love it

From what you've said and what I've read, is it safe to say tha you can actuall use this CLOC to BT? so if I owe CC $1000 I can add my bank account from NFCU and paid it off and NFCU will pay that bank from LOC if there's nothing in your checking?

When the lady told me that my NaVcheck was approved for full $15,000 she said my interest rate was 15.+% which equates to about $300 a month, I'm not sure what that means, I'm guessing if I take all the money from that CLOC... wow that will really hurt my UTI .... I think I'll take the short hit on my UTI and pay off Springleaf that has me at 25%, since I'm getting my bonus in 2 weeks I can pay down the CLOC pretty quickly.

Another thing, when will NFCU reports? as soon as the account is opened?

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Mon, 08 Aug 2016 01:42:57 GMT

Ok, I'll answer what I can

1) Navy reports the LOC right around the closing of your checking account statement, so whatever day of the month your regular checking account closes a few days after is when the numbers get reported (sometimes seeing on the Navy website takes a few extra days but if you call and are a nag, like me they have the info just update a little slow,like Discover)

2) Yes, technically for your thought pattern you can call it de facto a BT...cause it's your LOC you can pay whatever you want, they don't care. It just won't be a BT from their POV because they weren't directly involved but it's just a cash advance, you can spend it to your Mom ( Or your ex-wife😭)
Navy doesn't care, it's just a transaction to them, like I said Ive got a checkbook and if 'she' needs it Now...I can write a check and that check goes right to CLOC skipping over CASH in the account, which can come in handy

I'm not sure if your SpringLeaf loan is fixed rate or not if your going to pay off the total debt within the next two weeks
You may want to run the numbers to see which is cheaper you'll pay about 5 cents per day per $100 to use the CLOC (gotten to know the numbers well lol) but if you can payoff SpringLeaf without incurring any new % over the next 2 weeks I don't know if you save

I would not worry about the utilization hit because once you pay it back your score will shoot up

And if it's really 2 weeks it may never get reported in the 1st place

Re: Use and Availability of NaVChecks from NFCU

Aduke1122 — Mon, 08 Aug 2016 03:50:35 GMT

Thanks for sharing that Gemini ! This is very useful info!

Re: Use and Availability of NaVChecks from NFCU

someg33k — Mon, 08 Aug 2016 06:14:12 GMT

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.

Re: Use and Availability of NaVChecks from NFCU

JustcallmeTM — Mon, 08 Aug 2016 11:35:00 GMT

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.

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Wed, 10 Aug 2016 06:49:46 GMT

@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?

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Wed, 10 Aug 2016 16:30:35 GMT

@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.

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Wed, 10 Aug 2016 14:08:54 GMT

@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.

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Wed, 10 Aug 2016 16:51:29 GMT

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?!

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Wed, 10 Aug 2016 19:12:22 GMT

@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.

Re: Use and Availability of NaVChecks from NFCU

Anonymous — Wed, 10 Aug 2016 19:48:01 GMT

^ I actually went to the branch just to be sure. I was told that it's a credit line approved for the full amount and I can use it however I wish, I can pull the $15K right now if I want and use wherever..... I just needed some confirmation if the check I issued will be paid and wouldn't have any problem before hand. They said nope and write away. He also said it's like a credit card, if you are approved for $5,000 and decided to buy something for $4999 it will certainly be approved.