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NFCU Active Duty Checking question

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Frequent Contributor

NFCU Active Duty Checking question

I burned NFCU in my BK7 this year for 13k on a credit card. My recruiter says once I am out of Bootcamp or during bootcamp I will be converted to active duty checking which includes a 500$ overdraft line of credit. My question is do I still get that even though I burned them?  

Message 1 of 6
5 REPLIES 5
New Contributor

Re: NFCU Active Duty Checking question

I think it's questionable if you'll even get the checking account, let alone the CLOC, since this happened less than a year ago.

Message 2 of 6
Frequent Contributor

Re: NFCU Active Duty Checking question

I already have everyday checking and the Navy federal in branch teller said and so did the person she called to reference it said they will upgrade me to active duty checking once I am in Bootcamp (technically call a week before I leave and theyll upgrade it she said) my question was in regards to if they would give me the additional benefit that goes with that account due to my bk. Like I already know I’ll get the active duty checking just unsure about the 500$ built in overdraft loc
Message 3 of 6
Moderator

Re: NFCU Active Duty Checking question

Your recruiter is likely referring to Optional Overdraft Protection Service (OOPS), which is $20 per incident and covers up to $500 in overdrawn balances.  This is overdraft protection and is not the same as a CLOC offered by NFCU, which is a revolving account and has no fee imposed for covering your checking balance if you go below a $0 balance (other than interest accrued at the APR given for the account).

 

Take anything and everything that your recruiter tells you with a grain of salt.  This isn't to say that recruiters are bad people, but they have a difficult and demading job to do and that essentially requires telling you anything that you need to hear to get you to show up to MEPS and to your first training station.

 

I would not count on receiving any lending products for them in the short term.  I would not make a plan to take advantage of the overdraft protection as that can quickly become a very vicious cycle.  Being enlisted and broke until the next payday is no fun.


Message 4 of 6
Frequent Contributor

Re: NFCU Active Duty Checking question

It’s literally a loc only 500$ absolutely. No 20$ oops or anything like that. Just when your pay goes in it pays off whatever went below and dipped into that 500$
Message 5 of 6
Moderator

Re: NFCU Active Duty Checking question


@Anonymous514 wrote:
It’s literally a loc only 500$ absolutely. No 20$ oops or anything like that. Just when your pay goes in it pays off whatever went below and dipped into that 500$

CLOCs are not automatically issued by NFCU for anyone.  They are lending products that must be applied for as a stand-alone application (auto loans and CLOCs are one department at NFCU, and different than the department that handles checking) and you are approved for a specific amount (up to $15,000) and APR based upon creditworthiness.  Payments to CLOCs are not automatically made when a checking account reaches a positive balace; it is another account with its own due date and payments have to be made specifically to that stand-alone account.

 

What you are describing is how the Optional Overdraft Protection Service (OOPS) function of NFCU's Free Active Duty Checking® functions.  For what it's worth, you can change to Active Duty checking up to 90 days prior to receiving your first Active Duty net direct deposit, so there is no need to wait until a week prior as you were told.  NFCU is very transparent about their fees, products, and policies.  The terms for that account type can be found here: https://www.navyfederal.org/pdf/applications-forms/savings-checking/401A_Active_Duty_Checking.pdf


Message 6 of 6
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