Is LOC different from the Credit line you get when opening a new CC?

[Anonymous]

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@EdwardMH wrote:

I am still confused on how a LOC differs from a Credit Card... Did  I just take out a $15,000 loan I have to pay back?

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No, it's not a personal loan.  The $15K sits there and you can use it all or any part of it when you need it.  Only then would have to start paying it back.  Think about it as a large overdraft protection (which it is) but also an on demand loan if needed.  They will issue you LOC checks that you can pay bills with etc if needed or you can deposit a check into an external account for cash.

[Anonymous]

Here's the actual NFCU explanation:

With Checking Line of Credit,1 your checking account is covered. It protects you from overdrafts and from having transactions denied for non-sufficient funds. Plus, it's also an easy and convenient line of credit when you need quick access to cash.

Automatic protection with no per-item overdraft fees
Access cash when you need it for large or unexpected expenses
Flexible repayment options
A low interest rate with monthly payments that are 2% of the principal loan balance or $20, whichever is higher. Current rate is as low as 13.9% APR.2

[EdwardMH]

Ok what if I do not touch it at all? Can a Debit/secured credit card be attatched to it? Sorry for all the noob questions but I am learning and feel a bit over whelmed and alone at times. My Credit Score did take a slight bump up today from 652 to 671.

[Anonymous]

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@EdwardMH wrote:

Ok what if I do not touch it at all? Can a Debit/secured credit card be attatched to it? Sorry for all the noob questions but I am learning and feel a bit over whelmed and alone at times. My Credit Score did take a slight bump up today from 652 to 671.

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If you don't touch it, nothing happens.  No, a debit/secured card can't be attached to it and I'm not sure why you want to.  How would that help you?  No need to apologize for the questions, that's how we all learn.  Good on the score jump.

[EdwardMH]

I assume the goal to raise credit is to get 1-4 credit cards use the cautiously to raise your credit scor then slowly try to replace them with card that have Higher limits but lower interest rates? Or have the ones you got adjusted that way? I am hoping to get to 720+ as fast as I can. I can get a VA Homeloan with a 620 score but I am hoping with highter score I can get a better Morgtage intrest rate.

[Anonymous]

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@EdwardMH wrote:

I assume the goal to raise credit is to get 1-4 credit cards use the cautiously to raise your credit scor then slowly try to replace them with card that have Higher limits but lower interest rates? Or have the ones you got adjusted that way? I am hoping to get to 720+ as fast as I can. I can get a VA Homeloan with a 620 score but I am hoping with highter score I can get a better Morgtage intrest rate.

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You keep mentioning a secured card.  NFCU just approved you for a LOC and a credit card with $8,500 limit.  Why do you keep bringing a secure card up?  Do you want one? What am I missing here?

[EdwardMH]

I am putting $950 a month into a seperate savings account for a Emergency fund I thought a Secured card attatched to it would be a easy way to manage my emergency fund.

[Anonymous]

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@Anonymous wrote:

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@EdwardMH wrote:

I assume the goal to raise credit is to get 1-4 credit cards use the cautiously to raise your credit scor then slowly try to replace them with card that have Higher limits but lower interest rates? Or have the ones you got adjusted that way? I am hoping to get to 720+ as fast as I can. I can get a VA Homeloan with a 620 score but I am hoping with highter score I can get a better Morgtage intrest rate.

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You keep mentioning a secured card.  NFCU just approved you for a LOC and a credit card with $8,500 limit.  Why do you keep bringing a secure card up?  Do you want one? What am I missing here?

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+1. You don't need a secured card now to improve your scores

[Anonymous]

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@EdwardMH wrote:

I am putting $950 a month into a seperate savings account for a Emergency fund I thought a Secured card attatched to it would be a easy way to manage my emergency fund.

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@EdwardMH,

If you are putting that much away every month in a savings account, what you need attached to it is a debit card.  You should be able to get one with your savings linked to it.  A secured card is a credit card that you have to put money upfront to qualify for.  That been said, you are doing fine and have your brain cells remove that secure card thought from your head.

[EdwardMH]

Ok.. It was suggested that I get 3-5 differant types/location creditcards so I was thinking the Bestbuy, the Cash rewards and a nRewards Secured (From Navy Federal even though I have no knowledge or interest in credit cards wit Points what ever they are). and then try for a CC or 2 from USAA. This is confussing to me as I cut up all my old Credit and debit cards 2 years ago when I was following Dave Ramsey to get out of Debt wich I almost am now Just have $8,589 left on my car and I will be debt free. I am afraid to pay off the car as it is now my oldest revolving account though it would put another $500 in my pocket that I could put with the $950 I put in savings every month, THEN I have to start thinking about some kind of investment account, sadly not able to do a IRA as all my income is Tax Free (VA Disability and SSDI)