NFCU Navcheck question

[rubberman2003]

I was approved for a 4K navcheck a few days ago.  Could someon explain to me how this works.  I know I can use it as a loan.  Say my interest rate is 13.95%

Say i take out 3K, how long do i have to pay it back and what would my payments be?  THanks all

[msbia]

Navcheck is a line of credit that backs up your checking account. It's not really a loan; if you overdraw your checking it won't show as overdrawn the difference will be taken from your Navcheck. The amount used will be like a credit card payment with interest accruing at your 13% rate. You would pay it back just like a credit card payment.

[rubberman2003]

I guess the daily interest confuses me lol

[msbia]

Interest starts accruing from the day you use the Navcheck. It is good to have backup for your checking account, but I personally use my Navcheck for utilization purposes. You should at some point request the max of $15,000 on your Navcheck.

[credit-hunter]

NFCU will issue you checks to draw against the CLOC/NAVCHECK

[Anonymous]

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@msbia wrote:
Navcheck is a line of credit that backs up your checking account. It's not really a loan; if you overdraw your checking it won't show as overdrawn the difference will be taken from your Navcheck. The amount used will be like a credit card payment with interest accruing at your 13% rate. You would pay it back just like a credit card payment.

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[Anonymous]

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@msbia wrote:
Navcheck is a line of credit that backs up your checking account. It's not really a loan; if you overdraw your checking it won't show as overdrawn the difference will be taken from your Navcheck. The amount used will be like a credit card payment with interest accruing at your 13% rate. You would pay it back just like a credit card payment.

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That's not entirely true.  While it does serve as an overdraft protection they also issue you checks that you can write against your LOC for any purpose which in effect is a loan.