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PLOC vs OLOC tell what I dont know?

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kremonis
Regular Contributor

PLOC vs OLOC tell what I dont know?

PLOC = personal line of credit

OLOC = overdraft line of credit attached to checking account to stop overdrafts

 

If you shopping for a line of credit, is there a reason to choose one over the other? Are APR typically similar?

 

I am leaning towards a oloc because of the automatic handling of overdrafts.

 

The oloc at NFCU has checks that you use. Does that make this product a hybrid: OPLOC (overdraft personal line of credit)?

Message 1 of 12
11 REPLIES 11
Anonymous
Not applicable

Re: PLOC vs OLOC tell what I dont know?

Will report US Bank OLOC is 21.9% interest fixed up to $5,000 CL no collateral and runs under the bank side. The PLOC is 12.50% variable with 680 Fico Score minimum and up to $25,000 CL no collateral and runs under the credit card side of the bank. Both types of credit lines show up online and the mobile app allowing you to move money and pay the lines. The PLOC has a Visa Access Card (works like a normal Visa Credit Card except interest starts immediate on any transaction) and checks are available for the PLOC. As to the OLOC, it is tied to your checking account and the debit card can work on the checking/OLOC as well as causing an overdraft to your OLOC, note there may be transfer fees.

 

Usually a hard inquiry is pulled for the PLOC. There are exceptions when opening a checking account an a pop up may happen with a person being offered an OLOC which will rely usually on Chex Systems for the OLOC (if a check is run).

 

US Bank has what they call a "customer relations score" and this too can weight in. Also, both types of lines of credit will report monthly to the credit bureaus reflecting any activity showing on the last business day of the month. No matter what other cutoffs a person has, there are NO EXCEPTIONS on credit reporting.

Message 2 of 12
creditfan
Established Contributor

Re: PLOC vs OLOC tell what I dont know?

to me they're basically doing the same thing, just a different labeling. The only different I see it how much apr the lender willing offer it to you.

My BCU labels it as Unsecure LOC and  it works as intended

Message 3 of 12
M_Smart007
Legendary Contributor

Re: PLOC vs OLOC tell what I dont know?


@kremonis wrote:

PLOC = personal line of credit

OLOC = overdraft line of credit attached to checking account to stop overdrafts

 

 

The oloc at NFCU has checks that you use. Does that make this product a hybrid: OPLOC (overdraft personal line of credit)?


No. It makes it a CLOC (Checking line of credit) with NAV checks.Smiley Very Happy

Message 4 of 12
SouthJamaica
Mega Contributor

Re: PLOC vs OLOC tell what I dont know?


@kremonis wrote:

PLOC = personal line of credit

OLOC = overdraft line of credit attached to checking account to stop overdrafts

 

If you shopping for a line of credit, is there a reason to choose one over the other? Are APR typically similar?

 

I am leaning towards a oloc because of the automatic handling of overdrafts.

 

The oloc at NFCU has checks that you use. Does that make this product a hybrid: OPLOC (overdraft personal line of credit)?


They're both personal lines of credit. I find the overdraft type more convenient, because it saves me the step of transferring from one to the other.

 

No matter which kind I am using at the time, I never use the special LOC checks; I can't keep track of those the way I can keep track of regular checking account checks and tranfers. So if I'm using the non-overdraft kind, I transfer the money into checking and then use it.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 5 of 12
kremonis
Regular Contributor

Re: PLOC vs OLOC tell what I dont know?


@SouthJamaica wrote:

@kremonis wrote:

PLOC = personal line of credit

OLOC = overdraft line of credit attached to checking account to stop overdrafts

 

If you shopping for a line of credit, is there a reason to choose one over the other? Are APR typically similar?

 

I am leaning towards a oloc because of the automatic handling of overdrafts.

 

The oloc at NFCU has checks that you use. Does that make this product a hybrid: OPLOC (overdraft personal line of credit)?


They're both personal lines of credit. I find the overdraft type more convenient, because it saves me the step of transferring from one to the other.

 

No matter which kind I am using at the time, I never use the special LOC checks; I can't keep track of those the way I can keep track of regular checking account checks and tranfers. So if I'm using the non-overdraft kind, I transfer the money into checking and then use it.


@SouthJamaica 

I am leaning towards a oloc myself. I don't like the cloc at NFCU because I cannot figure out how to pay it externally. For example, if you have a NFCU CC you can directly push PMTS, to pay off the CC, from a external account. I can't figure how to do the same for the NFCU cloc.

 

AFAIK, you have to first push a PMT to the NFCU checking account then transfer from the NFCU checking account to the cloc. This makes 2 steps out of something that should take one.

 

I wonder if other clocs from other banks and CUs allow you to pay directly.

Message 6 of 12
SouthJamaica
Mega Contributor

Re: PLOC vs OLOC tell what I dont know?


@kremonis wrote:

@SouthJamaica wrote:

@kremonis wrote:

PLOC = personal line of credit

OLOC = overdraft line of credit attached to checking account to stop overdrafts

 

If you shopping for a line of credit, is there a reason to choose one over the other? Are APR typically similar?

 

I am leaning towards a oloc because of the automatic handling of overdrafts.

 

The oloc at NFCU has checks that you use. Does that make this product a hybrid: OPLOC (overdraft personal line of credit)?


They're both personal lines of credit. I find the overdraft type more convenient, because it saves me the step of transferring from one to the other.

 

No matter which kind I am using at the time, I never use the special LOC checks; I can't keep track of those the way I can keep track of regular checking account checks and tranfers. So if I'm using the non-overdraft kind, I transfer the money into checking and then use it.


@SouthJamaica 

I am leaning towards a oloc myself. I don't like the cloc at NFCU because I cannot figure out how to pay it externally. For example, if you have a NFCU CC you can directly push PMTS, to pay off the CC, from a external account. I can't figure how to do the same for the NFCU cloc.

 

AFAIK, you have to first push a PMT to the NFCU checking account then transfer from the NFCU checking account to the cloc. This makes 2 steps out of something that should take one.

 

I wonder if other clocs from other banks and CUs allow you to pay directly.


Yes this is one of the peculiarities of the NFCU CLOC; if you push a payment to, it goes into checking and you then need to transfer it.

 

You can, however, pull the payments with no problem. 

 

Every other  credit union with which I have a personal line of credit allows  you to push payments to it directly.  But -- and this is a big but -- pushed payments to PLOC's are often slow because the bill pay software doesn't recognize the account number the way it recognizes credit card account numbers. and so uses a paper check and snail mail.  So I try to pull, rather than push, payments to PLOC's no matter where they are or which type they are.

 

So bottom line, the way I look at it: pushing payments to PLOC's is often a bad business, so why not go with the NFCU version anyway, and pull your payments.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 7 of 12
Anonymous
Not applicable

Re: PLOC vs OLOC tell what I dont know?

In response to pushing and pulling payments to PLOCs ... the US Bank PLOC will receive direct payments as you are issued a Visa Access Card which works exactly like any credit card with its own card number not tied to anything else.
Message 8 of 12
SouthJamaica
Mega Contributor

Re: PLOC vs OLOC tell what I dont know?


@Anonymous wrote:
In response to pushing and pulling payments to PLOCs ... the US Bank PLOC will receive direct payments as you are issued a Visa Access Card which works exactly like any credit card with its own card number not tied to anything else.

So it's a debit card which is linked only to the line of credit, and not to the deposit accounts?  I wonder if other lenders could offer that if it were requested.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 9 of 12
Anonymous
Not applicable

Re: PLOC vs OLOC tell what I dont know?


@SouthJamaica wrote:

@Anonymous wrote:
In response to pushing and pulling payments to PLOCs ... the US Bank PLOC will receive direct payments as you are issued a Visa Access Card which works exactly like any credit card with its own card number not tied to anything else.

So it's a debit card which is linked only to the line of credit, and not to the deposit accounts?  I wonder if other lenders could offer that if it were requested.


No, it is a Visa Access Card (not labels as a Debit Card) for the PLOC and  can link to other accounts as far as I know. It works like a credit card and runs on the credit side of the bank. You can obtain cash at an ATM, and purchases with a note, interest starts right away there is NO GRACE PERIOD. 

Message 10 of 12
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