Can someone explain the Navy CLOC to me?

[Anonymous]

I’m just trying to understand the value of having it. Why not apply for the NFCU Platinum credit card and do a cash advance on the card (which is free) instead? The Platinum is likely to have a lower APR than the CLOC and a higher limit (CLOC maxes out at 15k I believe, where the Platinum can have a much higher limit).

Just trying to understand what is the value of it! Just seems like the Platinum can do everything and more. Thanks in advance for any responses. 

[Brian_Earl_Spilner]

It's a free utilization boost due to how its reported. If you get the max of $15k, factor that into your current utilization numbers

[Anonymous]

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@Anonymous wrote:

I’m just trying to understand the value of having it. Why not apply for the NFCU Platinum credit card and do a cash advance on the card (which is free) instead? The Platinum is likely to have a lower APR than the CLOC and a higher limit (CLOC maxes out at 15k I believe, where the Platinum can have a much higher limit).

Just trying to understand what is the value of it! Just seems like the Platinum can do everything and more. Thanks in advance for any responses. 

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CLOC is used for overdraft protection purposes and you can write checks from it.

When you overdraft your account, it automatically withdraws from the CLOC. With a credit card, that doesn't happen. 

[Anonymous]

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@Brian_Earl_Spilner wrote:

It's a free utilization boost due to how its reported. If you get the max of $15k, factor that into your current utilization numbers

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More utilization is always useful, but since it maxes at 15k and gives a hard pull, I guess I just see more value in applying for a credit card that will give a larger utilization over time (depending the card and issuer).

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

CLOC is used for overdraft protection purposes and you can write checks from it.

When you overdraft your account, it automatically withdraws from the CLOC. With a credit card, that doesn't happen. 

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I forgot about that overdraft protection. I never overdraft but just in case I see where that gives some peace of mind. You can only use it for your NFCU bank account though right? With such a large limit, I’m sure if I overdraft over 10k it’s because of fraudulent activity!

The check writing through it never seemed like a smart idea to though when you could cash advance through a NFCU cc for free and at a lower APR than the CLOC.

Does anyone know if the CLOC need to be used to remain active like a credit card? Or do you never have to worry about it closing for inactivity?

[Brian_Earl_Spilner]

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@Anonymous wrote:

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@Brian_Earl_Spilner wrote:

It's a free utilization boost due to how its reported. If you get the max of $15k, factor that into your current utilization numbers

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More utilization is always useful, but since it maxes at 15k and gives a hard pull, I guess I just see more value in applying for a credit card that will give a larger utilization over time (depending the card and issuer).

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You took 6 hard pulls for your 2 cap1 cards. Cap1 is currently decreasing limits for not utilizing higher limits (and they're not the only ones), capping former high limits at 10k. A single HP for 15k that won't fluctuate seems pretty sound too me. But, it's all perspective.

[Anonymous]

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@Brian_Earl_Spilner wrote:

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@Anonymous wrote:

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@Brian_Earl_Spilner wrote:

It's a free utilization boost due to how its reported. If you get the max of $15k, factor that into your current utilization numbers

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More utilization is always useful, but since it maxes at 15k and gives a hard pull, I guess I just see more value in applying for a credit card that will give a larger utilization over time (depending the card and issuer).

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You took 6 hard pulls for your 2 cap1 cards. Cap1 is currently decreasing limits for not utilizing higher limits (and they're not the only ones), capping former high limits at 10k. A single HP for 15k that won't fluctuate seems pretty sound too me. But, it's all perspective.

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I’m afraid that’s not relevant in my case; I was not eligible for NFCU back then, my cap1 cards are 10 and 7 years old and I have no idea what pulled when I got them. Just keep them open now for the aaoa and don’t use either one. 

If I was starting anew with my credit I wouldn’t ever get a Capital One haha. But still would find more value in choosing a good rewards card, but yes everyone’s situation is different.

[Anonymous]

No the CLOC does not have to be use to remain active and will not be close for inactivity ...

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

CLOC is used for overdraft protection purposes and you can write checks from it.

When you overdraft your account, it automatically withdraws from the CLOC. With a credit card, that doesn't happen. 

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I forgot about that overdraft protection. I never overdraft but just in case I see where that gives some peace of mind. You can only use it for your NFCU bank account though right? With such a large limit, I’m sure if I overdraft over 10k it’s because of fraudulent activity!

The check writing through it never seemed like a smart idea to though when you could cash advance through a NFCU cc for free and at a lower APR than the CLOC.

Does anyone know if the CLOC need to be used to remain active like a credit card? Or do you never have to worry about it closing for inactivity?

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