topic Re: NFCU LOC not reporting on CRA's strategy in Credit Cards

NFCU LOC not reporting on CRA's strategy

elbori357 — Wed, 26 Mar 2014 15:53:27 GMT

Could I PIF my NFCU siggy visa with my NFCU checking account which I have $0 balance to activate my LOC so it gets reported on my CRA's then before the closing date (April 4) PIF my LOC. Would this plan make NFCU report my LOC to the CRA's?

Thoughts

Thanks

Re: NFCU LOC not reporting on CRA's strategy

Creditaddict — Wed, 26 Mar 2014 15:56:00 GMT

@elbori357 wrote:
Could I PIF my NFCU siggy visa with my NFCU checking account which I have $0 balance to activate my LOC so it gets reported on my CRA's then before the closing date (April 4) PIF my LOC. Would this plan make NFCU report my LOC to the CRA's?

Thoughts

Thanks

How long has it been open, usually you don't have to use it for it to report.

Re: NFCU LOC not reporting on CRA's strategy

elbori357 — Wed, 26 Mar 2014 17:32:34 GMT

Opened it on Feb 21. My siggy is reporting already and both were opened at same time.

Re: NFCU LOC not reporting on CRA's strategy

Creditaddict — Wed, 26 Mar 2014 18:00:07 GMT

@elbori357 wrote:
Opened it on Feb 21. My siggy is reporting already and both were opened at same time.

One requires loan documents to be signed and set up... Give it 2 months

Re: NFCU LOC not reporting on CRA's strategy

elbori357 — Wed, 26 Mar 2014 18:22:39 GMT

@Creditaddict wrote:
@elbori357 wrote:
Opened it on Feb 21. My siggy is reporting already and both were opened at same time.
One requires loan documents to be signed and set up... Give it 2 months

Ok. One last question.

If I use the LOC to pay for anything, I read here that the interest is immediately accrued. Could you explain? In the event that I want to use it. Can I use it and PIF before the statement closing date without paying interest?

Re: NFCU LOC not reporting on CRA's strategy

sailor_mercury — Wed, 26 Mar 2014 19:29:55 GMT

@elbori357 wrote:
@Creditaddict wrote:
@elbori357 wrote:
Opened it on Feb 21. My siggy is reporting already and both were opened at same time.
One requires loan documents to be signed and set up... Give it 2 months
Ok. One last question.
If I use the LOC to pay for anything, I read here that the interest is immediately accrued. Could you explain? In the event that I want to use it. Can I use it and PIF before the statement closing date without paying interest?

It is my understanding the NFCU's Checking LOC charges interest from day 1 and that interest compounds daily. You could be paying a lot in interest even if you ran a high balance, even for just a few days. To be sure you can call NFCU.

Re: NFCU LOC not reporting on CRA's strategy

elbori357 — Wed, 26 Mar 2014 19:34:09 GMT

@sailor_mercury wrote:
@elbori357 wrote:
@Creditaddict wrote:
@elbori357 wrote:
Opened it on Feb 21. My siggy is reporting already and both were opened at same time.
One requires loan documents to be signed and set up... Give it 2 months
Ok. One last question.
If I use the LOC to pay for anything, I read here that the interest is immediately accrued. Could you explain? In the event that I want to use it. Can I use it and PIF before the statement closing date without paying interest?
It is my understanding the NFCU's Checking LOC charges interest from day 1 and that interest compounds daily. You could be paying a lot in interest even if you ran a high balance, even for just a few days. To be sure you can call NFCU.

Wow... definately will call them to confirm.

Re: NFCU LOC not reporting on CRA's strategy

Anonymous — Wed, 26 Mar 2014 20:21:33 GMT

LOCs and cash advances and BTs rarely have a grace period, so interest starts accruing immediately.

However, the usual killer is fees, not a few days of interest.

If there are no fees, and the APR is 15%, and interest is compounded continuously, then the effective interest rate is 16.18%, and you'd pay around $3.11 per $1000 for each week you borrow money using the LOC.

Re: NFCU LOC not reporting on CRA's strategy

Creditaddict — Wed, 26 Mar 2014 20:23:22 GMT

@Anonymous wrote:
LOCs and cash advances and BTs rarely have a grace period, so interest starts accruing immediately.

However, the usual killer is fees, not a few days of interest.

If there are no fees, and the APR is 15%, and interest is compounded continuously, then the effective interest rate is 16.18%, and you'd pay around $3.11 per $1000 for each week you borrow money using the LOC.

I love an easy to understand math breakdown! THANK YOU.

Re: NFCU LOC not reporting on CRA's strategy

Creditaddict — Wed, 26 Mar 2014 20:25:34 GMT

here is mine right now that you can see and my rate is 17.9%:

03/24/2014	Finance Charge	$1.04	$1.04		$302.38
03/18/2014	NAVchek Advance	$302.38		$302.38	$302.38
03/04/2014	Payoff Adjustment	$0.05-		$0.05-	$0.00
03/04/2014	Trf Fr Checking	$105.62-	$0.05-	$105.57-	$0.05
03/04/2014	Finance Charge	$0.05	$0.05		$105.62
03/03/2014	NAVchek Advance	$105.62		$105.62	$105.62
02/25/2014	Trf Fr Checking	$25.66-	$0.23-	$25.43-	$0.00
02/24/2014	Finance Charge	$0.23	$0.23		$25.43
02/24/2014	Trf Fr Shares	$81.26-		$81.26-	$25.43

Re: NFCU LOC not reporting on CRA's strategy

elbori357 — Thu, 27 Mar 2014 01:38:34 GMT

Ok I called and was explain the following:
If I use 3000 of my loc at 13.99% it gets divided by 30 days of the month to calculate a daily balance and the interest is then applied to the daily average balance which will be 100 dollars. Total interest paid will be $13.99 for that month if I were to PIF at the end of the month. Does this sounds about correct?

Re: NFCU LOC not reporting on CRA's strategy

Creditaddict — Thu, 27 Mar 2014 01:44:07 GMT

@elbori357 wrote:
Ok I called and was explain the following:
If I use 3000 of my loc at 13.99% it gets divided by 30 days of the month to calculate a daily balance and the interest is then applied to the daily average balance which will be 100 dollars. Total interest paid will be $13.99 for that month if I were to PIF at the end of the month. Does this sounds about correct?

Umm no!

Re: NFCU LOC not reporting on CRA's strategy

credit-hunter — Thu, 27 Mar 2014 01:52:25 GMT

that would be 167.88% per year can't be?

Re: NFCU LOC not reporting on CRA's strategy

Anonymous — Thu, 27 Mar 2014 02:22:58 GMT

@elbori357 wrote:
Ok I called and was explain the following:
If I use 3000 of my loc at 13.99% it gets divided by 30 days of the month to calculate a daily balance and the interest is then applied to the daily average balance which will be 100 dollars. Total interest paid will be $13.99 for that month if I were to PIF at the end of the month. Does this sounds about correct?

I expect what they and you are trying to say is that they will take the daily balances over a month, add them together, divide by 30, and then apply an annual interest rate of 13.99% to the average.

If you use $3K for a month, the average daily balance is $3K, and the total interest would be approximately:

3000 * 0.1399 / 12 = 34.97

If the interest is compounded daily or continuously, this increases the effective rate, but not dramatically.

Re: NFCU LOC not reporting on CRA's strategy

Pupeitmeister — Thu, 27 Mar 2014 02:59:51 GMT

@Anonymous wrote:
@elbori357 wrote:
Ok I called and was explain the following:
If I use 3000 of my loc at 13.99% it gets divided by 30 days of the month to calculate a daily balance and the interest is then applied to the daily average balance which will be 100 dollars. Total interest paid will be $13.99 for that month if I were to PIF at the end of the month. Does this sounds about correct?
I expect what they and you are trying to say is that they will take the daily balances over a month, add them together, divide by 30, and then apply an annual interest rate of 13.99% to the average.

If you use $3K for a month, the average daily balance is $3K, and the total interest would be approximately:

3000 * 0.1399 / 12 = 34.97

If the interest is compounded daily or continuously, this increases the effective rate, but not dramatically.

But that would be the total for a 30 day month worth of interest... so you would further break that down:

34.97/30 = 1.16 per day... so if you borrowed the 3k on the 20th of the month, and only kept it for 10 days, then PIF the full 3k, it would only cost you somewhere around 12 bucks. the finite math can get tricky, but its not too bad once you figure the formulas.

Re: NFCU LOC not reporting on CRA's strategy

elbori357 — Thu, 27 Mar 2014 03:01:45 GMT

Man I will call tomorrow and ask to speak to a banker instead of a customer support rep. I really want to understand this. Thank you for your help guys. Will report back tomorrow.

Re: NFCU LOC not reporting on CRA's strategy

Anonymous — Thu, 27 Mar 2014 03:06:04 GMT

If the calculation is done from scratch, then we have:

3000 * 0.1399 / 365 = 1.15 per day

Paying this sort of interest for a few days is not a big deal.

Re: NFCU LOC not reporting on CRA's strategy

Anonymous — Thu, 27 Mar 2014 13:09:17 GMT

NFCU LOC took about 1.5 months to report on EX & EQ and almost 2 months on TU, I opened the LOC in late January.

Re: NFCU LOC not reporting on CRA's strategy

elbori357 — Thu, 27 Mar 2014 16:51:09 GMT

@Anonymous wrote:
If the calculation is done from scratch, then we have:

3000 * 0.1399 / 365 = 1.15 per day

Paying this sort of interest for a few days is not a big deal.

After speaking with a more knowledgeable rep at NFCU the above is entirely correct. Based on the 3k amount, the interest is 1.15 per day. Now, I go back to should I use a small amount to trigger them to report to CRA's ?

Thank you!!!!

Re: NFCU LOC not reporting on CRA's strategy

credit-hunter — Sat, 29 Mar 2014 20:17:45 GMT

the CLOC/NAVCHEK will report with out TRIGGERING it no need to do that.