topic NFCU Checking Line of Credit-Is it Worth It? in Personal Finance

NFCU Checking Line of Credit-Is it Worth It?

A1Credit — Thu, 10 May 2018 13:28:09 GMT

When I log into my NFCU account, under my offers is an offer for a checking line of credit. I was hoping someone could enlighten me on the benefits of applying for this. Which credit report will they pull? How do I utlilize it? Any negatives? Does it report on my credit reports and if so, how?

Good morning all and TIA for any information you can provide.

Re: NFCU Checking Line of Credit-Is it Worth It?

Anonymous — Thu, 10 May 2018 14:13:21 GMT

*It helps bring your UTL down if you have high balances on other cards.

*It does report

*They usually pull FICO 9, TU for membership and EQ for credit cards

*No negatives

*Basically, if you have $0 on your checking account and you write a check or pull money from an ATM, the money will come from that line of credit, which you then have to pay back. So basically It protects you from overdrafts and from having transactions denied for non-sufficient funds.

Re: NFCU Checking Line of Credit-Is it Worth It?

A1Credit — Thu, 10 May 2018 17:36:54 GMT

@Anonymous wrote:
*It helps bring your UTL down if you have high balances on other cards.
*It does report
*They usually pull FICO 9, TU for membership and EQ for credit cards
*No negatives
*Basically, if you have $0 on your checking account and you write a check or pull money from an ATM, the money will come from that line of credit, which you then have to pay back. So basically It protects you from overdrafts and from having transactions denied for non-sufficient funds.

Thanks! You mentioned they pull TU for membership and EQ for credit cards, where where does this fall as a line of credit? Does that mean they will pull EQ?

Re: NFCU Checking Line of Credit-Is it Worth It?

Appleman — Thu, 10 May 2018 17:48:57 GMT

Also, you basically cannot access the line until you have a $0 balance in your associated checking account. I hate to see zero in any of my personal checking accounts so I have never utilized my CLOC.

I do utilize my PLOC with PenFed if I need to on occasion. I can readily pull our money from my PenFed PLOC and do a short term loan to myself. I pay interest only for the days I need it and my rate at PenFed is better than NFCU.

Re: NFCU Checking Line of Credit-Is it Worth It?

A1Credit — Thu, 10 May 2018 17:52:01 GMT

@Appleman wrote:
Also, you basically cannot access the line until you have a $0 balance in your associated checking account. I hate to see zero in any of my personal checking accounts so I have never utilized my CLOC.

I do utilize my PLOC with PenFed if I need to on occasion. I can readily pull our money from my PenFed PLOC and do a short term loan to myself. I pay interest only for the days I need it and my rate at PenFed is better than NFCU.

Okay, now I'm confused. I can only use it if I have $0 in my checking account? I thought it was just a line of credit I could use if I needed it.

Re: NFCU Checking Line of Credit-Is it Worth It?

jlitnns — Thu, 10 May 2018 17:58:20 GMT

You can order checks (for free) and write yourself checks directly out of your CLOC. I did it just to see if it works. I mainly got it for the $15k line and overall utilization.

Re: NFCU Checking Line of Credit-Is it Worth It?

Appleman — Thu, 10 May 2018 18:00:51 GMT

It is a line of credit but only kicks in after the checking is empty.

I had a tax bill last year that I had to pay. I had the cash in various checking accounts but needed a few days to transfer into my account.

I wrote the check specifically with the NFCU CLOC check the NFCU provided and it still took money from my checking. Never touched the LOC because the checking still had enough cash in it. YMMV

Re: NFCU Checking Line of Credit-Is it Worth It?

jlitnns — Thu, 10 May 2018 18:25:30 GMT

@Appleman wrote:
It is a line of credit but only kicks in after the checking is empty.

I had a tax bill last year that I had to pay. I had the cash in various checking accounts but needed a few days to transfer into my account.
I wrote the check specifically with the NFCU CLOC check the NFCU provided and it still took money from my checking. Never touched the LOC because the checking still had enough cash in it. YMMV

Weird, I keep a few hundred in my NFCU checking and I've wrote myself 2 checks and it came directly from CLOC only. So I guess for OP only way is to try. YMMV.

Re: NFCU Checking Line of Credit-Is it Worth It?

SouthJamaica — Thu, 10 May 2018 18:37:53 GMT

@jlitnns wrote:
@Appleman wrote:
It is a line of credit but only kicks in after the checking is empty.

I had a tax bill last year that I had to pay. I had the cash in various checking accounts but needed a few days to transfer into my account.
I wrote the check specifically with the NFCU CLOC check the NFCU provided and it still took money from my checking. Never touched the LOC because the checking still had enough cash in it. YMMV
Weird, I keep a few hundred in my NFCU checking and I've wrote myself 2 checks and it came directly from CLOC only. So I guess for OP only way is to try. YMMV.

There are multiple ways to access the CLOC. One is to write regular checks on your checking account for more than is in the account. Another is to use the special checks which are just linked to the CLOC.

Re: NFCU Checking Line of Credit-Is it Worth It?

A1Credit — Thu, 10 May 2018 19:25:15 GMT

Thanks all. I think I will wait to apply because I want to better my chances of getting the full $15K. My EQ Fico 9 is 709 according to NFCU.

Re: NFCU Checking Line of Credit-Is it Worth It?

Appleman — Thu, 10 May 2018 21:35:37 GMT

That is the issue with using the specific CLOC checks. I paid my tax bill of around $2,200 and had $3,000 in my NFCU checking at the time. NFCU drew down the account to $800 and did not touch the CLOC. Honestly, was actually just seeing how the account and specific checks worked.

I also just remembered that the customer service rep said that the routing and account numbers were the same for the checking and CLOC checks. I just double checked mine and the Checking Checks and the CLOC Checks share the same routing number and account number. Hopefully others can verify.

Re: NFCU Checking Line of Credit-Is it Worth It?

Anonymous — Fri, 11 May 2018 03:59:15 GMT

@SouthJamaica wrote:
@jlitnnsThere are multiple ways to access the CLOC. One is to write regular checks on your checking account for more than is in the account. Another is to use the special checks which are just linked to the CLOC.

The checking and CLOC have the same routing/acct # on them. The reason why it goes thru checking instead of the CLOC (even if you use the CLOC checks) is due to how they are processed. If they are done like a regular check then it goes to CLOC, if its done as a direct debit (like your debit card) then it will come out of your checking acct first.

Re: NFCU Checking Line of Credit-Is it Worth It?

Anonymous — Fri, 11 May 2018 04:01:04 GMT

@A1Credit wrote:
Thanks all. I think I will wait to apply because I want to better my chances of getting the full $15K. My EQ Fico 9 is 709 according to NFCU.

That score is good enough to get the full 15K. The thing there is that while navy uses your fico score, they are more about your DTI and income.

Re: NFCU Checking Line of Credit-Is it Worth It?

Anonymous — Fri, 11 May 2018 22:45:43 GMT

I recently applied and received the full 15k, my FICO9 EQ is 723.

Good luck.

Re: NFCU Checking Line of Credit-Is it Worth It?

Anonymous — Sat, 12 May 2018 04:43:09 GMT

I have used my CLOC NavChecks time and time again with hundreds of dollars in my NFCU checking and they never once went through my checking first. Never ever once has that happened.

Re: NFCU Checking Line of Credit-Is it Worth It?

Jnbmom — Sat, 12 May 2018 04:54:13 GMT

@Anonymous wrote:
I have used my CLOC NavChecks time and time again with hundreds of dollars in my NFCU checking and they never once went through my checking first. Never ever once has that happened.

I opened a CLOC with them I only asked for 5K ( i know should have went for higher live and learn) anyhoo do they send you checks for this? I have not received any checks for the CLOC yet, but it is fairly a new account ( opened 4/24/18) so a little over 2 weeks ago since I opened that.

Re: NFCU Checking Line of Credit-Is it Worth It?

Anonymous — Sat, 12 May 2018 05:31:04 GMT

Call and ask them to send them to you. A book of 25 are free. Supposedly they auto send them. But i had to call and order my first batch.

You can also order them on your accounts page. Easier just to call them.

Re: NFCU Checking Line of Credit-Is it Worth It?

Jnbmom — Sat, 12 May 2018 05:30:32 GMT

Thanks

Re: NFCU Checking Line of Credit-Is it Worth It?

Anonymous — Sat, 12 May 2018 12:55:20 GMT

Slightly off, but are you stuck with the original apr with cloc and if you want the lowest apr you need to be in a great place before applying?

Re: NFCU Checking Line of Credit-Is it Worth It?

Anonymous — Sat, 12 May 2018 14:31:21 GMT

@Anonymous wrote:
Slightly off, but are you stuck with the original apr with cloc and if you want the lowest apr you need to be in a great place before applying?

Slightly off what?