Just a few Navy Federal CLOC insights that I hope may be helpful to others.
First, as I mentioned in a prior post, the APR you receive when you are approved for the CLOC is the APR that will stay with you for the life of the CLOC. They do not (unfortunately) do APR reductions on the CLOC, only on their credit cards.
I have PLOC rates with other credit unions that are much lower than my CLOC, so I don't plan to use the CLOC anytime soon. However, I did want to test something out by trying this for a two day period.
There are two options to access your CLOC: either write a Navcheck to yourself (or to someone else, such as another lender), or to "overdraw" your checking account by charging more on your Visa Debit card than you actually have in your account.
That option is one I did not like nor want, as it goes counter to the way I've always managed my finances.
Plus, two Navy Federal representatives confirmed for me that if you overdraw your checking account even with a CLOC in place, it DOES show a negative balance on the Navy Federal end for up to 24 hours. Even if Navy knows I have a CLOC and it will kick in within 24 hours, to me it does not look good to be showing them a negative on their end - epsecially repeated negatives if someone were to draw from the CLOC multiple times.
The Navcheck hits the CLOC directly and does not put your checking account into a zero balance status on your end and a negative balance status (for up to 24 hours) on the NFCU end. It just comes directly out of your CLOC and bypasses the checking account.
So, I wanted to test how this would look over a two day period. Went to the beach with my husband and used my Visa Debit for more than I had in my checking - just about $30 over.
It zeroed out the checking account for the two day period on my end and showed as a negative/overdrawn on the Navy end.
I paid the $30 back after the two days because I had done it just to see how it came through on both my end and on Navy's end.
I decided that I definitely don't like overdrawing things, nor even to see a 0 balance in my checking account.
Since I have a much lower APR with my other credit union PLOC, I most likely will not need to use Navy Federal CLOC. But if I did, I would go with Navchecks all the way since they draw from the CLOC directly and don't cause any of the above.
Just sharing my experience and hope the information will help someone. 
I agree with you on this! I like having the CLOC not because I really need it right now but it is available if I ever need it down the road. I hope to never need it
@mattmyFIC0 wrote:I agree with you on this! I like having the CLOC not because I really need it right now but it is available if I ever need it down the road. I hope to never need it
Agreed, mattmyfico, it is nice to have. But I will go Navcheck all the way if I ever decide to use it - having a checking account with a zero balance that temporarily shows as overdrawn on the NFCU end is not something I want to deal with.
Plus, there would be extra steps to having to add funds to your checking account so it doesn't just sit there at a zero balance! Best to draw right from the CLOC directly if needed.
@Anonymous wrote:I'm actually not sure yet (bad i know), i'm waiting for my promissory note to get here....I have a few high high interest credit accounts that i used to help build my credit (not even gonna say how high) but let's just say 14% is looking really good.
I'd check to see if any of your current cards have 0% balance transfer offers or low interest rate balance transfer offers before proceeding.
You can also call Navy Federal and ask them what the interest rate will be on your CLOC, even before the paperwork arrives. Good luck.
hmmm...thats a good idea and idk why i didn't think of that. i do have a new barclays and discover card that might be a better way to handle some of these accounts.
@Anonymous wrote:
@Anonymous wrote:I'm actually not sure yet (bad i know), i'm waiting for my promissory note to get here....I have a few high high interest credit accounts that i used to help build my credit (not even gonna say how high) but let's just say 14% is looking really good.
I'd check to see if any of your current cards have 0% balance transfer offers or low interest rate balance transfer offers before proceeding.
You can also call Navy Federal and ask them what the interest rate will be on your CLOC, even before the paperwork arrives. Good luck.
