PLOC

[juniornj23]

Do i must have a checking account to get a PLOC ?

[Anonymous]

In my experience most banks are relationship based when it comes to this product. I would ask your current financial institutions first. Is there anything in particular you are looking for as far as amount or rates?

[Anonymous]

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@juniornj23 wrote:
Do i must have a checking account to get a PLOC ?

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Yes, you do.

[Revelate]

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@Anonymous wrote:

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@juniornj23 wrote:
Do i must have a checking account to get a PLOC ?

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Yes, you do.

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If you mean checking or savings, yeah maybe.  I'm not certain that applies to all lenders though?

[Anonymous]

You do need one at almost every bank but there's no rule. I have a LOC at RBC Bank Georgia, but no checking account there. I used to have a checking account but I closed it because it had a monthly fee and I wasn't using it.

In Canada I have a secured line of credit (HELOC) that I use as a checking account. That bank has no problem if the HELOC has a credit balance (though it gets no interest) .

I used to have my salary direct deposit into the LOC and then auto transfer from there. It guaranteed no bill ever bounced and if I overspent my credit card would pay in full and then I would run a balance on the LOC at a very low interest rate. My salary direct deposit would effectively pay off that LOC every month as well. Guaranteed to never miss a payment.

I have been searching for something like that in the US and that RBC account is close. But most US institutions consider a LOC to be a form of overdraft from a regular checking account.

I do that now with BECU: checking account backstopped by a LOC. That way is I screw up balancing my account nothing bounces. It just borrows from the LOC and I pay a little interest.

But with the US system I have to manually pay the LOC if I use it. Which is no big deal but it was nice to have that automated.

[Anonymous]

One of my CU's doens't require a checking to get a line of credit.  You do need a savings account, as that is required to be member.  (This bank requires $30 at all times in the member savings account).  Hawaii Federal Credit Union.  

[RonM21]

I'd say that most do require it or something similar, but there are probably some out there that do not. The ones I know of do require it. But I'm only talking about several, so that doesn't mean much.

[Anonymous]

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@Revelate wrote:

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@Anonymous wrote:

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@juniornj23 wrote:
Do i must have a checking account to get a PLOC ?

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Yes, you do.

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If you mean checking or savings, yeah maybe.  I'm not certain that applies to all lenders though?

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Yes, will all lenders.  You can't link a PLOC to a savings account. PLOC is considered /known as "Overdraft Protection" with some lenders.

[lhcole77]

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@Anonymous wrote:

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@Revelate wrote:

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@Anonymous wrote:

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@juniornj23 wrote:
Do i must have a checking account to get a PLOC ?

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Yes, you do.

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If you mean checking or savings, yeah maybe.  I'm not certain that applies to all lenders though?

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Yes, will all lenders.  You can't link a PLOC to a savings account. PLOC is considered /known as "Overdraft Protection" with some lenders.

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My LOC at NASA is tied to a savings account. 

[Anonymous]

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@lhcole77 wrote:

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@Anonymous wrote:

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@Revelate wrote:

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@Anonymous wrote:

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@juniornj23 wrote:
Do i must have a checking account to get a PLOC ?

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Yes, you do.

---

If you mean checking or savings, yeah maybe.  I'm not certain that applies to all lenders though?

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Yes, will all lenders.  You can't link a PLOC to a savings account. PLOC is considered /known as "Overdraft Protection" with some lenders.

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My LOC at NASA is tied to a savings account. 

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Thats interesting.  Because NASA said my PLOC cannot be linked to a savings account and I havent been able to link it.  Just to a checking a account.