CC vs PLOC

[Stryder]

I wasn't sure where to post this question..pls move if it goes somewhere else...thnx

I have done some post on rounding out a small card collection on the boards here lately, and the last thing I am looking for is a good BT card to run a bl on in case of an emergency.  I have a nice variation of cards as a base and am ready to let them age and grow, but the BT card is stumping me. I don't think much of the traditional cards Like the Slate) because their rates are still way over 10%. I did find some great rates at SDFCU, but got shot down because I still have a 6yr 11 mo old derog on my account.

So I was looking at post on CU's like Penfed and NFCU and see a lot of people getting Visa's and PLOC's. It got me to thinking that would be a much better place to put a bl that you was going to ride for awhile than on a revolving loan right? Whats the advantage between the two? Is there a limit on transactions for a LOC? Is it harder credit wise to get? Do get checks or how do you buy things with a LOC? Anything else I haven't thought that makes it less advantages to a Credit card?

[Anonymous]

Depends on the LOC but many of them allow transfers into checking so you can borrow what you need when you need it.

[Stryder]

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@Anonymous wrote:
Depends on the LOC but many of them allow transfers into checking so you can borrow what you need when you need it.

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That would make sense...Someone else just told me that a PLOC is treated like a revolving account, so Im not really sure where the benefit is over a credit card. I would assume the rates are better. Is either one more difficult or easier to get?

[SouthJamaica]

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@Stryder wrote:

I wasn't sure where to post this question..pls move if it goes somewhere else...thnx

I have done some post on rounding out a small card collection on the boards here lately, and the last thing I am looking for is a good BT card to run a bl on in case of an emergency.  I have a nice variation of cards as a base and am ready to let them age and grow, but the BT card is stumping me. I don't think much of the traditional cards Like the Slate) because their rates are still way over 10%. I did find some great rates at SDFCU, but got shot down because I still have a 6yr 11 mo old derog on my account.

So I was looking at post on CU's like Penfed and NFCU and see a lot of people getting Visa's and PLOC's. It got me to thinking that would be a much better place to put a bl that you was going to ride for awhile than on a revolving loan right? Whats the advantage between the two? Is there a limit on transactions for a LOC? Is it harder credit wise to get? Do get checks or how do you buy things with a LOC? Anything else I haven't thought that makes it less advantages to a Credit card?

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The best balance transfer option I know is the Barclay Ring card. 8.25% variable interest rate, zero balance transfer fee.

You can avoid balance transfer fees with credit union credit cards and PLOC's, but I don't have any with a non-promotional rate as low as 8.25%.

[Anonymous]

SouthJ- DCU Platinum best rate 8.75%, no annual fee, no cash advance fees, no balance transfer fees. I have these terms, great card.

[Anonymous]

My PLOC with PCMCU is currently at $5,000 with a 7.49% interest rate. Minimum payment is also something like $35 or 1.5% whichever is greater. I mainly got it to be set up as overdraft protection on my checking account..which I don't really plan to use. but its also that much more to help utilization too.

[Stryder]

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@SouthJamaica wrote:

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The best balance transfer option I know is the Barclay Ring card. 8.25% variable interest rate, zero balance transfer fee.

You can avoid balance transfer fees with credit union credit cards and PLOC's, but I don't have any with a non-promotional rate as low as 8.25%.

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Thanks and Hi SJ!

I didn't realize Barclay had something that low. The CU's I was looking at SDFCU has a low of 7.24% and my own JSC FCU has a low of 6.9%. It doesn't have all the benefits the SD does, but not bad for a local CU. The JSC PLOC are 8.75%...which since I bank there, I can go in and talk face to face with them. I just have a major Jones on the SD card and is what I really want. I did  apply and got turned down for the card, but I am set up with a savings account and a membership.

I am thinking of going ahead and running some direct deposits through them and pay stufff with it to build up some history...do you think that would help in the long run? (To get the card or a PLOC?)

[Stryder]

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@Anonymous wrote:
My PLOC with PCMCU is currently at $5,000 with a 7.49% interest rate. Minimum payment is also something like $35 or 1.5% whichever is greater. I mainly got it to be set up as overdraft protection on my checking account..which I don't really plan to use. but its also that much more to help utilization too.

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Thats a great PLOC rate... I think a PLOC could really work for me as a place I could run a balance and not have much of a penality. I could do one at the SDFCU to back up my checking (since I am already a member there)...but then I look a their card is even lower... dunno..I gotta look at it more. Thanks for PCM tip...thats a low rate!

[Anonymous]

The caveat there is that PCM has a pretty small field of membership in that you need to work for one of a small group of Wisconsin employers (mainly near Green Bay or Marinette) OR be related to a current member. If you CAN get in, it's great though! Their Platinum Rewards card for instance gives 5% back up to $1000 per month with a 9.88% APR and the annual fee is waived if you have direct deposit with them and enroll in e-statements.

[CreditDunce]

My feeling is a PLOC is a little harder to get approved for.  Banks get antsy when you are basically with drawing cash. 

I mostly rely on savings for an emergency fund.  I have a small PLOC with one of my CU's (RBFCU) with an interest rate if 8.9%.  The nice thing about from a credit standpoint is it is a hidden tradeline.  It doesn't show up on my CR's.  A nice bonus since if I need it, I probably will not want my other CCCs to see. I am not sure if the rate is fixed or variable, but it didn't go up during the last prime rate increase.

My other credit emergency option is the SSFCU PTR card.  It has reasonable rewards (3.3% for restaurants, gas and travel.  1.1% for other). I think the APR for purchases is 10.25%.  The card shines with no BT or cash advance fees and a fixed 7.9% rate.