CLOC From NAVYFED

[Anonymous]

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@AverageJoesCredit wrote:

Only time i applied i was rejected no counter offer. I only asked for $5k. The csrs make you feel like you have a good shot, maybe even think of a counter offer...nope straight rejection. 

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It still baffles me that Langley gave you a card and a PLOC while NFCU said no to a CLOC!

[Revelate]

Genuine question but why do readers of this forum, where we advertise credit cards first for basically everything that they can be used for, need a CLOC like ever?

PLOC or HELOC I can understand, CLOCs are designed to cover Overdraft fees but unless you're writing lots of checks or have a slew of ACH's what's the point?  Their APRs are usually more in line with reward CCs than either of the other two, and there's precisely two things in my entire life that I can't pay for with a credit card and one of those (the auto loan) is going to get smashed by June once I get my home in Texas sorted, move, and refinace the Cali condo and increase my cash flow by some absurd amount.

At that point it's only mortgage payments which I can't do anything with other than I guess Plastiq when it comes to payment by CC.

I guess what I'm trying to say is a CLOC looks like a useless tradeline, and that, why?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

Navy normally won't counter on CLOC ...

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I don't know about this -- there are threads here showing counter-offers. Where are you getting the data for your claim?

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Plenty of posts here that have said they weren't countered on profiles that would seem to suggest an approval. 

Here is one that specifically got an instant denial asking for $15K, says they came and read the forum and decided to try again just an hour later and was approved for $4K. https://ficoforums.myfico.com/t5/Personal-Finance/NFCU-CLOC-approval-after-instant-denial/td-p/5420965

The issue is that if you ask for too much, you may get auto-declined instead of sent for manual review. There are plenty of examples to be found but that one was perfect because the person turned around and tried again the same day. 

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Here's a member who had a different experience -- he was counter-offered. There are more examples. I don't know if there are more or less than there are those who got declined, reduced their ask, and then got approved. We could go post for post to find out -- but I neither of us, nor any thread members, have any appetite for that. 

My only concern is: does limited anecdotal evidence of an outcome justify a label such as "normally"? I don't think in this case it does. 

No hard feelings I hope.

[thornback]

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@Revelate wrote:

Genuine question but why do readers of this forum, where we advertise credit cards first for basically everything that they can be used for, need a CLOC like ever?

PLOC or HELOC I can understand, CLOCs are designed to cover Overdraft fees but unless you're writing lots of checks or have a slew of ACH's what's the point?  Their APRs are usually more in line with reward CCs than either of the other two, and there's precisely two things in my entire life that I can't pay for with a credit card and one of those (the auto loan) is going to get smashed by June once I get my home in Texas sorted, move, and refinace the Cali condo and increase my cash flow by some absurd amount.

At that point it's only mortgage payments which I can't do anything with other than I guess Plastiq when it comes to payment by CC.

I guess what I'm trying to say is a CLOC looks like a useless tradeline, and that, why?

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The NFCU CLOC acts as both a PLOC and a CLOC - So it can make sense. 

As for overdraft-only CLOCS, seems $100-$500 would suffice as a just-in-case feature - though a linked savings would have the same benefit/protection.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

Navy normally won't counter on CLOC ...

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I don't know about this -- there are threads here showing counter-offers. Where are you getting the data for your claim?

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Plenty of posts here that have said they weren't countered on profiles that would seem to suggest an approval. 

Here is one that specifically got an instant denial asking for $15K, says they came and read the forum and decided to try again just an hour later and was approved for $4K. https://ficoforums.myfico.com/t5/Personal-Finance/NFCU-CLOC-approval-after-instant-denial/td-p/5420965

The issue is that if you ask for too much, you may get auto-declined instead of sent for manual review. There are plenty of examples to be found but that one was perfect because the person turned around and tried again the same day. 

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Here's a member who had a different experience -- he was counter-offered. There are more examples. I don't know if there are more or less than there are those who got declined, reduced their ask, and then got approved. We could go post for post to find out -- but I neither of us, nor any thread members, have any appetite for that. 

My only concern is: does limited anecdotal evidence of an outcome justify a label such as "normally"? I don't think in this case it does. 

No hard feelings I hope.

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It's always best to err on the side of caution. Best possible outcome is an approval over a denial. Nobody needs a $15K CLOC but everybody could use an emergency $500 or $1K in case they ever accidentally overdraft. 

As I said, I've seen it happen enough times that someone was auto declined that it's worth advising people ask for something reasonable if their profile isn't perfectly optimized. 

[Anonymous]

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@Revelate wrote:

Genuine question but why do readers of this forum, where we advertise credit cards first for basically everything that they can be used for, need a CLOC like ever?

PLOC or HELOC I can understand, CLOCs are designed to cover Overdraft fees but unless you're writing lots of checks or have a slew of ACH's what's the point?  Their APRs are usually more in line with reward CCs than either of the other two, and there's precisely two things in my entire life that I can't pay for with a credit card and one of those (the auto loan) is going to get smashed by June once I get my home in Texas sorted, move, and refinace the Cali condo and increase my cash flow by some absurd amount.

At that point it's only mortgage payments which I can't do anything with other than I guess Plastiq when it comes to payment by CC.

I guess what I'm trying to say is a CLOC looks like a useless tradeline, and that, why?

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Accidents happen. Not everyone leaves a ton of money in their checking account whether that be because they don't have the money to leave there or because they move it somewhere else. I would rather have to pay a few days of interest than an overdraft fee. 

I personally haven't overdrawn an account since 2012 but I don't use auto pay either. If I ever set up auto pay, I'll want to make sure I have some safety net there. 

[AverageJoesCredit]

Even though it would be nice to have the CLOC, most people only want it for padding and dont use it. I tried once just becsuse but since i really dont use my Navy checking, the Cloc is not a necessity.  Now that 25k cc limit goal, yeah, thats fico important😄

[Revelate]

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@thornback wrote:

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@Revelate wrote:

Genuine question but why do readers of this forum, where we advertise credit cards first for basically everything that they can be used for, need a CLOC like ever?

PLOC or HELOC I can understand, CLOCs are designed to cover Overdraft fees but unless you're writing lots of checks or have a slew of ACH's what's the point?  Their APRs are usually more in line with reward CCs than either of the other two, and there's precisely two things in my entire life that I can't pay for with a credit card and one of those (the auto loan) is going to get smashed by June once I get my home in Texas sorted, move, and refinace the Cali condo and increase my cash flow by some absurd amount.

At that point it's only mortgage payments which I can't do anything with other than I guess Plastiq when it comes to payment by CC.

I guess what I'm trying to say is a CLOC looks like a useless tradeline, and that, why?

---

The NFCU CLOC acts as both a PLOC and a CLOC - So it can make sense. 

As for overdraft-only CLOCS, seems $100-$500 would suffice as a just-in-case feature - though a linked savings would have the same benefit/protection.

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Low interest rates ranging from 13.9% to 17.9% APR3

Straight from their site just now, just like a HELOC I saw today from them at 7%

No offense NFCU lovers, but get any LOC from someone else, Navy isn't good at them.

[Revelate]

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@Anonymous wrote:

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@Revelate wrote:

Genuine question but why do readers of this forum, where we advertise credit cards first for basically everything that they can be used for, need a CLOC like ever?

PLOC or HELOC I can understand, CLOCs are designed to cover Overdraft fees but unless you're writing lots of checks or have a slew of ACH's what's the point?  Their APRs are usually more in line with reward CCs than either of the other two, and there's precisely two things in my entire life that I can't pay for with a credit card and one of those (the auto loan) is going to get smashed by June once I get my home in Texas sorted, move, and refinace the Cali condo and increase my cash flow by some absurd amount.

At that point it's only mortgage payments which I can't do anything with other than I guess Plastiq when it comes to payment by CC.

I guess what I'm trying to say is a CLOC looks like a useless tradeline, and that, why?

---

Accidents happen. Not everyone leaves a ton of money in their checking account whether that be because they don't have the money to leave there or because they move it somewhere else. I would rather have to pay a few days of interest than an overdraft fee. 

I personally haven't overdrawn an account since 2012 but I don't use auto pay either. If I ever set up auto pay, I'll want to make sure I have some safety net there. 

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Fair, but get any PLOC or HELOC with check writing capability and use mobile deposit.

Problem solved if you know you have a payment coming up and have a cash shortfall, and save on interest too (see prior post).

I'd still argue this line is not useful in the sense it's too expensive for what it's designed for if you actually need it.

[Anonymous]

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@Revelate wrote:

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@Anonymous wrote:

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@Revelate wrote:

Genuine question but why do readers of this forum, where we advertise credit cards first for basically everything that they can be used for, need a CLOC like ever?

PLOC or HELOC I can understand, CLOCs are designed to cover Overdraft fees but unless you're writing lots of checks or have a slew of ACH's what's the point?  Their APRs are usually more in line with reward CCs than either of the other two, and there's precisely two things in my entire life that I can't pay for with a credit card and one of those (the auto loan) is going to get smashed by June once I get my home in Texas sorted, move, and refinace the Cali condo and increase my cash flow by some absurd amount.

At that point it's only mortgage payments which I can't do anything with other than I guess Plastiq when it comes to payment by CC.

I guess what I'm trying to say is a CLOC looks like a useless tradeline, and that, why?

---

Accidents happen. Not everyone leaves a ton of money in their checking account whether that be because they don't have the money to leave there or because they move it somewhere else. I would rather have to pay a few days of interest than an overdraft fee. 

I personally haven't overdrawn an account since 2012 but I don't use auto pay either. If I ever set up auto pay, I'll want to make sure I have some safety net there. 

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Fair, but get any PLOC or HELOC with check writing capability and use mobile deposit.

Problem solved if you know you have a payment coming up and have a cash shortfall, and save on interest too (see prior post).

I'd still argue this line is not useful in the sense it's too expensive for what it's designed for if you actually need it.

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Well my point is using the CLOC as it's actually intended - protection in the event of an accidental overdraft. If I knew in advance that I was going to overdraw my NFCU account, I would advance off my Platinum at 9.49% instead of 15.9% on my CLOC but I would be thankful for my CLOC if I had to use it. 

Of course if NFCU would do things the way DCU does, allowing you to use your credit card for overdraft protection, this would be a moot point anyway.