topic Re: NFCU CLOC Approval in Personal Finance

NFCU CLOC Approval

Anonymous — Sat, 06 Jun 2020 16:27:01 GMT

Hello everyone! So I did some research on the forums in regard to the NFCU CLOC. I still have some debt to pay off and read that NFCU's cloc is like a personal loan but with lower interest rate compared to other loan companies. I intend on using this to pay off the very few baddies I have while kindly paying back this loan with the best intentions. If I am wrong, please correct me on this! I wanted to apply last month but the CS they pulled monthly was Fico 9 EQ 571. After paying off a collections and having it deleted, and a CO my score updated to Fico 9 EQ 629. I heard people getting approvals for even their credit cards in this range so I decided to apply. I called them up to do this and told the rep I wanted to apply for 1500. Got the message of awaiting approval from an officer. About 20 hours later I got an email saying they needed more information from me and to give them a call or wait for a call. Decided to call them and spoke with a rep who told me I was not denied but rather they can only approve 500 to start with. I accepted and was told I would get a decision in 2 hours. Lo and behold I got an email stating I was approved @ 14.9%. If it matters, my util was 7% on 2 cards that are carrying a balance (Now paid off) and 2 CO baddies on my report.

Some questions though. . .
If possible, how often do they increase the limit? Is it done automatically or do you have to call in? How many months in between? And while I understand this is a type of loan and not a credit card, I read that interest starts immediately. I feel entirely stupid for asking but can someone explain to me how this works? Do they charge interest every day you have a balance after it reports? Is it per transaction or the overall balance you have? Or is the interest charged monthly? Like I said before, I would use this to help with some of the baddies and pay it off ASAP to build further reputation with them. If I am entirely wrong on this, please correct me. Thank you!

Re: NFCU CLOC Approval

AllZero — Sat, 06 Jun 2020 16:27:16 GMT

Congratulations on your approval!

Re: NFCU CLOC Approval

Rebuild2019 — Sat, 06 Jun 2020 16:51:17 GMT

Congrats 🎊🎈🎉 @Anonymous on your approval.

Re: NFCU CLOC Approval

gdale6 — Sat, 06 Jun 2020 16:52:02 GMT

Grats on getting your new CLOC

Others will be along with info on your questions as I do not do business with this CU.

Re: NFCU CLOC Approval

Anonymous — Sat, 06 Jun 2020 16:54:27 GMT

Congrats on your approval!

Re: NFCU CLOC Approval

Anonymous — Sun, 07 Jun 2020 00:42:09 GMT

@Anonymous wrote:
Hello everyone! So I did some research on the forums in regard to the NFCU CLOC. I still have some debt to pay off and read that NFCU's cloc is like a personal loan but with lower interest rate compared to other loan companies. I intend on using this to pay off the very few baddies I have while kindly paying back this loan with the best intentions. If I am wrong, please correct me on this! I wanted to apply last month but the CS they pulled monthly was Fico 9 EQ 571. After paying off a collections and having it deleted, and a CO my score updated to Fico 9 EQ 629. I heard people getting approvals for even their credit cards in this range so I decided to apply. I called them up to do this and told the rep I wanted to apply for 1500. Got the message of awaiting approval from an officer. About 20 hours later I got an email saying they needed more information from me and to give them a call or wait for a call. Decided to call them and spoke with a rep who told me I was not denied but rather they can only approve 500 to start with. I accepted and was told I would get a decision in 2 hours. Lo and behold I got an email stating I was approved @ 14.9%. If it matters, my util was 7% on 2 cards that are carrying a balance (Now paid off) and 2 CO baddies on my report.

Some questions though. . .
If possible, how often do they increase the limit? Is it done automatically or do you have to call in? How many months in between? And while I understand this is a type of loan and not a credit card, I read that interest starts immediately. I feel entirely stupid for asking but can someone explain to me how this works? Do they charge interest every day you have a balance after it reports? Is it per transaction or the overall balance you have? Or is the interest charged monthly? Like I said before, I would use this to help with some of the baddies and pay it off ASAP to build further reputation with them. If I am entirely wrong on this, please correct me. Thank you!

No grace period on a CLOC. You get charged on what you use.

If timing works just perfectly it might help you avoid other interest.
For this example we will say you have exactly one credit card and the CLOC.

You have a zero balance on your credit card.
You spend $400 on your credit card.

The charge posts June 1st.

Your card statement is June 1st through June 30 th.

The card issuer generates a statement with payment due date of July 25.

At this moment in time you have the minimum due but you will not have enough for the full $400 until your paycheck is direct deposited on July 31.

In this case you withdraw enough money from the CLOC to pay the credit card in full.

By accruing interest on the CLOC withdrawal for about a week you have paid the card off in full and thus avoid getting hit with trailing interest on upcoming purchases on the credit card.

Do not cut numbers dangerously close in real life.

This was just a quick example.

If the credit card was issued by NFCU you won't be able to directly pay the credit card with the CLOC but you should be able to go from CLOC to checking to credit card.

Edit: If you have collections that this money can allow you to fully resolve focus on that.

My example was just trying to explain interest.

Re: NFCU CLOC Approval

M_Smart007 — Sat, 06 Jun 2020 17:39:35 GMT

Congratulations on your CLOC approval.

Re: NFCU CLOC Approval

Anonymous — Sat, 06 Jun 2020 19:03:31 GMT

@Anonymous wrote:

Some questions though. . .
If possible, how often do they increase the limit? Is it done automatically or do you have to call in? How many months in between? And while I understand this is a type of loan and not a credit card, I read that interest starts immediately. I feel entirely stupid for asking but can someone explain to me how this works? Do they charge interest every day you have a balance after it reports? Is it per transaction or the overall balance you have? Or is the interest charged monthly? Like I said before, I would use this to help with some of the baddies and pay it off ASAP to build further reputation with them. If I am entirely wrong on this, please correct me. Thank you!

1) limit increase for CLOCs (I THINK) have to be asked for.

2) be careful, this will likely show up as revolving credit, much like a credit card. As such, the high utilization may hurt your credit while you pay it down.

I won't go in to the interest discussion as someone well-and-fully covered it.

I will say - best use of a CLOC is a quick oops fund. I need to write a check out of x account and oops I don't have the funds. Takes a few days to get funds there. Transfer CLOC funds, pay it back immediately as soon as the other funds transfer in. I have one with another CU and we use it precisely for that. It has a convenient branch. I don't keep a high balance in that bank. I need a little extra walking-around money (ahem, pre-COVID). Txfr from CLOC, pull cash from there, pay back as soon as I can transfer money in, pay a few pennies in interest for the convenience.

Re: NFCU CLOC Approval

ChazzieT — Sat, 06 Jun 2020 19:56:19 GMT

Congratulations!

Re: NFCU CLOC Approval

Anonymous — Mon, 08 Jun 2020 23:06:26 GMT

Thank you everyone! And thank you for the info! One question though, has anyone applied for a CLI after approval before? Would it be possible? Or do you have to wait 3 months just about?

Re: NFCU CLOC Approval

M_Smart007 — Tue, 09 Jun 2020 20:58:01 GMT

@Anonymous wrote:
Thank you everyone! And thank you for the info! One question though, has anyone applied for a CLI after approval before? Would it be possible? Or do you have to wait 3 months just about?

IMHO, I would wait 6 months. They will HP Equifax.

Re: NFCU CLOC Approval

EverForward — Tue, 09 Jun 2020 21:01:54 GMT

Congratulations on your CLOC approval!

Re: NFCU CLOC Approval

mrfufoppss — Wed, 10 Jun 2020 23:26:39 GMT

You Have to Have some Good time Building with (Direct Deposits) from your Job i was denied a Increase 2 weeks ago and Had mine since December 2019 my letter mentions the time my DD is not long enough i switched my DD to Navy in March i think so pretty much it takes time and direct deposits btw my fico 9 equifax which is what they pulled is 748 🙄

Re: NFCU CLOC Approval

M_Smart007 — Wed, 10 Jun 2020 23:35:30 GMT

@mrfufoppss wrote:
You Have to Have some Good time Building with (Direct Deposits) from your Job i was denied a Increase 2 weeks ago and Had mine since December 2019 my letter mentions the time my DD is not long enough i switched my DD to Navy in March i think so pretty much it takes time and direct deposits btw my fico 9 equifax which is what they pulled is 748 🙄

@mrfufoppss, Sorry for your denial

But, Thank you very much for sharing your DP's. It can really help others to make decisions.

Re: NFCU CLOC Approval

mrfufoppss — Thu, 11 Jun 2020 23:18:55 GMT

@M_Smart007 no prob

Re: NFCU CLOC Approval

CYBERSAM — Fri, 12 Jun 2020 01:39:36 GMT

@Anonymous Congrats on your approval 👍

Re: NFCU CLOC Approval

Anonymous — Thu, 18 Jun 2020 03:36:12 GMT

Congrats! I've considered the CLOC. just not sure if it's the right move for me yet.