topic Re: Navy Federal CLOC Insights in Personal Finance

Navy Federal CLOC Insights

Anonymous — Sun, 28 Aug 2016 14:25:20 GMT

Just a few Navy Federal CLOC insights that I hope may be helpful to others.

First, as I mentioned in a prior post, the APR you receive when you are approved for the CLOC is the APR that will stay with you for the life of the CLOC. They do not (unfortunately) do APR reductions on the CLOC, only on their credit cards.

I have PLOC rates with other credit unions that are much lower than my CLOC, so I don't plan to use the CLOC anytime soon. However, I did want to test something out by trying this for a two day period.

There are two options to access your CLOC: either write a Navcheck to yourself (or to someone else, such as another lender), or to "overdraw" your checking account by charging more on your Visa Debit card than you actually have in your account.

That option is one I did not like nor want, as it goes counter to the way I've always managed my finances.

Plus, two Navy Federal representatives confirmed for me that if you overdraw your checking account even with a CLOC in place, it DOES show a negative balance on the Navy Federal end for up to 24 hours. Even if Navy knows I have a CLOC and it will kick in within 24 hours, to me it does not look good to be showing them a negative on their end - epsecially repeated negatives if someone were to draw from the CLOC multiple times.

The Navcheck hits the CLOC directly and does not put your checking account into a zero balance status on your end and a negative balance status (for up to 24 hours) on the NFCU end. It just comes directly out of your CLOC and bypasses the checking account.

So, I wanted to test how this would look over a two day period. Went to the beach with my husband and used my Visa Debit for more than I had in my checking - just about $30 over.

It zeroed out the checking account for the two day period on my end and showed as a negative/overdrawn on the Navy end.

I paid the $30 back after the two days because I had done it just to see how it came through on both my end and on Navy's end.

I decided that I definitely don't like overdrawing things, nor even to see a 0 balance in my checking account.

Since I have a much lower APR with my other credit union PLOC, I most likely will not need to use Navy Federal CLOC. But if I did, I would go with Navchecks all the way since they draw from the CLOC directly and don't cause any of the above.

Just sharing my experience and hope the information will help someone.

Re: Navy Federal CLOC Insights

Anonymous — Sun, 28 Aug 2016 14:38:51 GMT

Thank you for sharing! I haven't read much about how people are using it so this info definitely is right on time.

I was recently approved for Navy CLOC and am entertaining the idea of using it to pay off some higher interest credit cards and accounts. Kind of like consolidating a few accounts with a lower rates and having fewer payments to have to deal with on a monthly basis.

Does anyone else have any experience on using it this way? Please share if so.

Re: Navy Federal CLOC Insights

mattmyFIC0 — Sun, 28 Aug 2016 14:40:47 GMT

I agree with you on this! I like having the CLOC not because I really need it right now but it is available if I ever need it down the road. I hope to never need it

Re: Navy Federal CLOC Insights

Anonymous — Sun, 28 Aug 2016 15:58:21 GMT

@Anonymous wrote:
Thank you for sharing! I haven't read much about how people are using it so this info definitely is right on time.

I was recently approved for Navy CLOC and am entertaining the idea of using it to pay off some higher interest credit cards and accounts. Kind of like consolidating a few accounts with a lower rates and having fewer payments to have to deal with on a monthly basis.

Does anyone else have any experience on using it this way? Please share if so.

What is the interest rate for your CLOC? They gave me 14% and that is too high for me to consider using it!

Re: Navy Federal CLOC Insights

Anonymous — Sun, 28 Aug 2016 16:00:37 GMT

@mattmyFIC0 wrote:
I agree with you on this! I like having the CLOC not because I really need it right now but it is available if I ever need it down the road. I hope to never need it

Agreed, mattmyfico, it is nice to have. But I will go Navcheck all the way if I ever decide to use it - having a checking account with a zero balance that temporarily shows as overdrawn on the NFCU end is not something I want to deal with.

Plus, there would be extra steps to having to add funds to your checking account so it doesn't just sit there at a zero balance! Best to draw right from the CLOC directly if needed.

Re: Navy Federal CLOC Insights

Anonymous — Sun, 28 Aug 2016 19:18:18 GMT

I'm actually not sure yet (bad i know), i'm waiting for my promissory note to get here....I have a few high high interest credit accounts that i used to help build my credit (not even gonna say how high) but let's just say 14% is looking really good.

Re: Navy Federal CLOC Insights

ddemari — Sun, 28 Aug 2016 19:58:19 GMT

they gave me 15.9% on my 15,000 cloc. I am still waiting on my CLOC checks to come in the mail.

Re: Navy Federal CLOC Insights

Anonymous — Sun, 28 Aug 2016 20:57:30 GMT

@Anonymous wrote:
I'm actually not sure yet (bad i know), i'm waiting for my promissory note to get here....I have a few high high interest credit accounts that i used to help build my credit (not even gonna say how high) but let's just say 14% is looking really good.

I'd check to see if any of your current cards have 0% balance transfer offers or low interest rate balance transfer offers before proceeding.

You can also call Navy Federal and ask them what the interest rate will be on your CLOC, even before the paperwork arrives. Good luck.

Re: Navy Federal CLOC Insights

Anonymous — Sun, 28 Aug 2016 21:33:31 GMT

hmmm...thats a good idea and idk why i didn't think of that. i do have a new barclays and discover card that might be a better way to handle some of these accounts.

@Anonymous wrote:
@Anonymous wrote:
I'm actually not sure yet (bad i know), i'm waiting for my promissory note to get here....I have a few high high interest credit accounts that i used to help build my credit (not even gonna say how high) but let's just say 14% is looking really good.
I'd check to see if any of your current cards have 0% balance transfer offers or low interest rate balance transfer offers before proceeding.

You can also call Navy Federal and ask them what the interest rate will be on your CLOC, even before the paperwork arrives. Good luck.

Re: Navy Federal CLOC Insights

Aduke1122 — Tue, 30 Aug 2016 18:34:15 GMT

This is very useful info Humu, my question is how do you make use of your other PLOC ? Is it easier than the one with Navy Fed or is it basically the same methods to use it ? Idk why I thought you could have an option to just either transfer cash into your checking when needed . That would be much simpler than the other routes .

Re: Navy Federal CLOC Insights

Anonymous — Tue, 30 Aug 2016 22:23:42 GMT

@Aduke1122 wrote:
This is very useful info Humu, my question is how do you make use of your other PLOC ? Is it easier than the one with Navy Fed or is it basically the same methods to use it ? Idk why I thought you could have an option to just either transfer cash into your checking when needed . That would be much simpler than the other routes .

My PLOC is so easy to use that I wish other lenders made it this easy! There is a drop down menu and I can transfer any amount from PLOC directly into either checking or savings with just one click. I can also easily transfer it back into the PLOC, so it goes both ways. Love BECU.

No need for Navchecks, or to use a Visa debit card to overdraw the account.

Plus, the interest rate on my PLOC is much lower so that is another plus.

Re: Navy Federal CLOC Insights

Aduke1122 — Wed, 31 Aug 2016 03:18:27 GMT

Wow that is awesome , that is just how I always imagined they would work , idk why it has to be so difficult at some places . What is the full name of your CU?

Re: Navy Federal CLOC Insights

Anonymous — Wed, 31 Aug 2016 04:25:43 GMT

@Anonymous wrote:
@Aduke1122 wrote:
This is very useful info Humu, my question is how do you make use of your other PLOC ? Is it easier than the one with Navy Fed or is it basically the same methods to use it ? Idk why I thought you could have an option to just either transfer cash into your checking when needed . That would be much simpler than the other routes .
My PLOC is so easy to use that I wish other lenders made it this easy! There is a drop down menu and I can transfer any amount from PLOC directly into either checking or savings with just one click. I can also easily transfer it back into the PLOC, so it goes both ways. Love BECU.

No need for Navchecks, or to use a Visa debit card to overdraw the account.

Plus, the interest rate on my PLOC is much lower so that is another plus.

Please pardon the thread-jack, but you just got my attention - I joined BECU to take advantage of the 4% interest rate on savings and checking (first $500)...do you know how friendly they are to rebuild/BK by chance on the credit side?

Re: Navy Federal CLOC Insights

Anonymous — Wed, 31 Aug 2016 11:01:49 GMT

@Anonymous wrote:
@Anonymous wrote:
@Aduke1122 wrote:
This is very useful info Humu, my question is how do you make use of your other PLOC ? Is it easier than the one with Navy Fed or is it basically the same methods to use it ? Idk why I thought you could have an option to just either transfer cash into your checking when needed . That would be much simpler than the other routes .
My PLOC is so easy to use that I wish other lenders made it this easy! There is a drop down menu and I can transfer any amount from PLOC directly into either checking or savings with just one click. I can also easily transfer it back into the PLOC, so it goes both ways. Love BECU.

No need for Navchecks, or to use a Visa debit card to overdraw the account.

Plus, the interest rate on my PLOC is much lower so that is another plus.
Please pardon the thread-jack, but you just got my attention - I joined BECU to take advantage of the 4% interest rate on savings and checking (first $500)...do you know how friendly they are to rebuild/BK by chance on the credit side?

I don't know how they are with negatives specifically, since I don't have any, but I can tell you they are VERY conservative and if you are patient, I'm sure something will work out for you. What are your scores, and what does your profile look like?

Re: Navy Federal CLOC Insights

Anonymous — Wed, 31 Aug 2016 21:06:25 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Aduke1122 wrote:
This is very useful info Humu, my question is how do you make use of your other PLOC ? Is it easier than the one with Navy Fed or is it basically the same methods to use it ? Idk why I thought you could have an option to just either transfer cash into your checking when needed . That would be much simpler than the other routes .
My PLOC is so easy to use that I wish other lenders made it this easy! There is a drop down menu and I can transfer any amount from PLOC directly into either checking or savings with just one click. I can also easily transfer it back into the PLOC, so it goes both ways. Love BECU.

No need for Navchecks, or to use a Visa debit card to overdraw the account.

Plus, the interest rate on my PLOC is much lower so that is another plus.
Please pardon the thread-jack, but you just got my attention - I joined BECU to take advantage of the 4% interest rate on savings and checking (first $500)...do you know how friendly they are to rebuild/BK by chance on the credit side?
I don't know how they are with negatives specifically, since I don't have any, but I can tell you they are VERY conservative and if you are patient, I'm sure something will work out for you. What are your scores, and what does your profile look like?

Scores are in the 665-675 range (it's been over a month since my last CCT triple pull, but I'm waiting for everything to report before I refresh that) Filed BK7 1/19/16, discharged 4/27/16, 3 IIB lines showing, currently have a $7k Cap One opened 4/27/16, and an NFCU cashrewards at $500 that I just activated yesterday.

I'm in the garden till about the end of the year, so not looking to apply right away...but it sounds like I'm probably not going to be applying ever if they're as conservative as you say.

Re: Navy Federal CLOC Insights

Anonymous — Wed, 31 Aug 2016 22:14:16 GMT

Do you get Navchecks along side the documents you need to sign?

Re: Navy Federal CLOC Insights

Anonymous — Thu, 01 Sep 2016 13:34:38 GMT

@Anonymous wrote:
Do you get Navchecks along side the documents you need to sign?

Hi grayarea,

You will need to call Navy Federal and request the Navchecks once they receive your signed CLOC documents and once your CLOC is fully set up.

The way you will know if they have received your signed paperwork and if your CLOC is fully set up is that your CLOC will start showing up in your online accounts. You can then call in to request Navchecks.

Hope this helps!

Re: Navy Federal CLOC Insights

woodyman100 — Tue, 10 Jan 2017 02:36:34 GMT

@Anonymous wrote:
@Aduke1122 wrote:
This is very useful info Humu, my question is how do you make use of your other PLOC ? Is it easier than the one with Navy Fed or is it basically the same methods to use it ? Idk why I thought you could have an option to just either transfer cash into your checking when needed . That would be much simpler than the other routes .
My PLOC is so easy to use that I wish other lenders made it this easy! There is a drop down menu and I can transfer any amount from PLOC directly into either checking or savings with just one click. I can also easily transfer it back into the PLOC, so it goes both ways. Love BECU.

No need for Navchecks, or to use a Visa debit card to overdraw the account.

Plus, the interest rate on my PLOC is much lower so that is another plus.

I have the same great way to use my PLOC from EECU and it's at 7.7%.