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How best to utilize Navy CLOC.

designated_knitter
Established Contributor

How best to utilize Navy CLOC.

So I have a 500 Navy CLOC.  It goes against my grain to intentionally overdraft my checking account because, well, bad things happen, usually!

 

But I think I've read that if you don't actually use the CLOC, then it won't grow and basically be viewed as a credit line that never gets used.

 

Also, can you start using CLOC simply by doing an ATM purchase for more than your checking account balance?

 

Ive never had a CLOC befor so not exactly sure how to use it to its fullest capacity.

 

Thanks in advance!

Started Over Again after Cap1 Death Penalty:
06/15/2019:
03/02/2021:
04/06/2021:
Lesson Learned: DON'T POKE THE BEAR!!! THE BEAR WILL WIN!!!
Message 1 of 9
8 REPLIES 8
M_Smart007
Epic Contributor

Re: How best to utilize Navy CLOC.


@designated_knitter wrote:

So I have a 500 Navy CLOC.  It goes against my grain to intentionally overdraft my checking account because, well, bad things happen, usually! = It is good to have just in case.

 

But I think I've read that if you don't actually use the CLOC, then it won't grow and basically be viewed as a credit line that never gets used. = The CLOC won't really grow, unless you ask for a HP CLI.. If you are not active Military with direct deposit. It is hard to grow

 

Also, can you start using CLOC simply by doing an ATM purchase for more than your checking account balance?

= You can overdraft your checking acct. with no worries. You can also call and request "NAV Checks to write against the LOC.

 

Ive never had a CLOC befor so not exactly sure how to use it to its fullest capacity.

= Just use it as needed, like Insurance .. You don't really use it, until you do!

 

Thanks in advance! = You are welcome!


Hope this helpsSmiley Happy

 

Message 2 of 9
designated_knitter
Established Contributor

Re: How best to utilize Navy CLOC.

That does help very much!  Thank you!

Started Over Again after Cap1 Death Penalty:
06/15/2019:
03/02/2021:
04/06/2021:
Lesson Learned: DON'T POKE THE BEAR!!! THE BEAR WILL WIN!!!
Message 3 of 9
SouthJamaica
Super Contributor

Re: How best to utilize Navy CLOC.


@designated_knitter wrote:

So I have a 500 Navy CLOC.  It goes against my grain to intentionally overdraft my checking account because, well, bad things happen, usually!

 

But I think I've read that if you don't actually use the CLOC, then it won't grow and basically be viewed as a credit line that never gets used.

 

Also, can you start using CLOC simply by doing an ATM purchase for more than your checking account balance?

 

Ive never had a CLOC befor so not exactly sure how to use it to its fullest capacity.

 

Thanks in advance!


1. It will report just like a credit card.

2. Don't use it unless you really really need it, because the interest rate is high, and interest gets calculated right away, with  no grace period.

3. Yes it activates automatically if you overdraw the account. If that makes you uncomfortable, you could just transfer the money from the CLOC to the checking. [Corrected, thanks to @Overmedicated ]

4. It won't grow. So if you don't want to have a $500 credit line reporting, just get rid of it.


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 721 TU 747 EX 715

Message 4 of 9
Overmedicated
Community Leader
Valued Contributor

Re: How best to utilize Navy CLOC.


@SouthJamaica wrote:

@designated_knitter wrote:

So I have a 500 Navy CLOC.  It goes against my grain to intentionally overdraft my checking account because, well, bad things happen, usually!

 

But I think I've read that if you don't actually use the CLOC, then it won't grow and basically be viewed as a credit line that never gets used.

 

Also, can you start using CLOC simply by doing an ATM purchase for more than your checking account balance?

 

Ive never had a CLOC befor so not exactly sure how to use it to its fullest capacity.

 

Thanks in advance!


1. It will report just like a credit card.

2. Don't use it unless you really really need it, because the interest rate is high, and interest gets calculated right away, with  no grace period.

3. Yes it activates automatically if you overdraw the account. If that makes you uncomfortable, you could just transfer the money from the CLOC to the checking.

4. It won't grow. So if you don't want to have a $500 credit line reporting, just get rid of it.


The CLOC and your checking account have the same account number so this isn't an option.  You can't tap into the CLOC and transfer money to the same account(this is a big difference between NFCU's CLOC and other bank's LOCs).  The CLOC comes with checks and you can deposit these into another banking account but of course it is not immediately ready for withdrawal. 

 

You can do an immmediate cash advance right into your checking from say a credit card.  This works much like their LOC should.

FICO 8
Message 5 of 9
Overmedicated
Community Leader
Valued Contributor

Re: How best to utilize Navy CLOC.


@designated_knitter wrote:

So I have a 500 Navy CLOC.  It goes against my grain to intentionally overdraft my checking account because, well, bad things happen, usually!

 

But I think I've read that if you don't actually use the CLOC, then it won't grow and basically be viewed as a credit line that never gets used.

 

Also, can you start using CLOC simply by doing an ATM purchase for more than your checking account balance?

 

Ive never had a CLOC befor so not exactly sure how to use it to its fullest capacity.

 

Thanks in advance!


You can use it in a few handy ways, some of the others have already mentioned:

1)  Deposit a check into another financial institution.  You will have a seperate booklet sent to you since this is a new account.

2)  Write someone a check from the CLOC booklet.  When cashed, the balance will go directly on your CLOC balance.

3)  Intentionally overdraft your account.  This may feel weird but NFCU does not frown upon this.

 

FICO 8
Message 6 of 9
VanderSnoot
Established Contributor

Re: How best to utilize Navy CLOC.

As has been implied by most of the answers above, the best way to use the CLOC is to never use it. The interest rate is high, and there's no benefit to you in paying interest. It's there just in case. I hope you never need it.

Message 7 of 9
SouthJamaica
Super Contributor

Re: How best to utilize Navy CLOC.


@Overmedicated wrote:

@SouthJamaica wrote:

@designated_knitter wrote:

So I have a 500 Navy CLOC.  It goes against my grain to intentionally overdraft my checking account because, well, bad things happen, usually!

 

But I think I've read that if you don't actually use the CLOC, then it won't grow and basically be viewed as a credit line that never gets used.

 

Also, can you start using CLOC simply by doing an ATM purchase for more than your checking account balance?

 

Ive never had a CLOC befor so not exactly sure how to use it to its fullest capacity.

 

Thanks in advance!


1. It will report just like a credit card.

2. Don't use it unless you really really need it, because the interest rate is high, and interest gets calculated right away, with  no grace period.

3. Yes it activates automatically if you overdraw the account. If that makes you uncomfortable, you could just transfer the money from the CLOC to the checking.

4. It won't grow. So if you don't want to have a $500 credit line reporting, just get rid of it.


The CLOC and your checking account have the same account number so this isn't an option.  You can't tap into the CLOC and transfer money to the same account(this is a big difference between NFCU's CLOC and other bank's LOCs).  The CLOC comes with checks and you can deposit these into another banking account but of course it is not immediately ready for withdrawal. 

 

You can do an immmediate cash advance right into your checking from say a credit card.  This works much like their LOC should.


I stand corrected. You are right. I forgot that NFCU's line of credit was different than that of other credit unions.


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 721 TU 747 EX 715

Message 8 of 9
Andy77
Valued Contributor

Re: How best to utilize Navy CLOC.

 

Here is a tip to use Navy's CLOC checks right away.... write the check and take a pic and deposit into a USAA checking account. I have deposited north of 5k into my USAA checking account via my iphone and get immediate availabilty of the funds. Then I can adjust my ATM withdrawl limit and take out the cash if need be.

 

 

Message 9 of 9
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