@Anonymous wrote:
@Anonymous wrote:
^ I actually went to the branch just to be sure. I was told that it's a credit line approved for the full amount and I can use it however I wish, I can pull the $15K right now if I want and use wherever..... I just needed some confirmation if the check I issued will be paid and wouldn't have any problem before hand. They said nope and write away. He also said it's like a credit card, if you are approved for $5,000 and decided to buy something for $4999 it will certainly be approved.You certainly can use the full line of credit or max most of it out, just as you can with any lender. i just don't think it's the wisest idea.
Is it for security reason? I just want to understand why wouldn't someone not use it especially if their main purpose was to use it? I wish I could have tape recorded what I was told just incase I do take the risk and pay off a loan and them flag it then freeze my account because its so new... there's so many ifs and whens I drive myself crazy all the time. Its not like I'm stealing it - I'm borrowing it.... 
@Anonymous wrote:
@Aduke1122 wrote:
And im kind of confused about if they have changed the way you can access the LOC , when I was married to my X he was in the Navy he had a CLOC with them and I swear I thought we could access it by using our debit card back them , there was an option for checking , savings , and credit . Plus we had checks , but if we just used our checking acct and didn't have funds to cover it automatically came out of the LOC. Now this was well over 10 years ago so if anyone can chime in that may know for sure if im not remembering right I would appreciate it.I talked with a Navy Federal representative pretty extensively about the CLOC and Navchecks yesterday just so I could understand how it all worked.
There are two ways to draw from your CLOC: use your Visa debit card and actually "overdraw" your checking account, or write a Navcheck which draws directly from the CLOC and does not show up under your checking account interface, but shows up under the CLOC area of your online account.
If I did decide to use the Navy Federal CLOC, I would definitely choose the Navchecks option instead of the Visa debit card.
The reason is that the Visa debit card temporarily shows your account as "overdrawn" for a full day, then it shows the CLOC amount pulled over the next day.
I just don't like the idea of overdrawing my account, even if I know if is pulling from the CLOC and the "overdrawn" status will be corrected the next day. It just goes counter to the way I've always managed my finances.
The rep told me that the Navchecks draw directly from the CLOC and don't even show up under the checking account - they show up under the CLOC as they draw directly from that. No overdrawn status occurs.
I can write a Navcheck to myself, and cash it at my bank, or use "mobile deposit" and deposit it into my account at another credit union.
Two of my credit unions have immediate credit for mobile deposits, so that would work well.
My other credit union has a much lower rate for my PLOC, so I most likely would use that first if needed.
Navchecks are the option I would choose if needed for NFCU.
The rep should have said it takes your account to a ZERO balance...THEN....your CL kicks in....this is very different b/c it can and could cause undue stress (as with this poster).
Your account DOES NOT GO OR REPORT (even for a day) as OVERDRAWN ...
(Navy has a overdraft product called (OOPS..Optional Overdraft Protection Service) that the CSR might be confusing how the 2 work b/c the LOC is attached to a checking account.
With OOPS there is a $20 flat fee is charged to overdraft one's account up to $ 500 with 30 days to bring it back positive (no charge for amounts less than $5)...there is no credit check for this service, just an opt-in.
*Now THAT service made cause one's account to 'overdraft' for a day but the CLOC does NOT cause an OVERDRAFT status b/c one is NOT overdrawn....that's the POINT of it being a LOC vs an overdraft protection.....
The CSR is correct, the LOC checks do go directly to your LOC and bypasses your checking account available balance.....
whereas your regular checks and your debit card would OF COURSE pull from your checking account balance 1st....thus causing you to go into DEBT
only after your available (non borrowed) funds have been use....
My point was to clarify, there is no need to fret about been 'overdrawn' b/c your NFCU checking account is NOT in fact overdrawn by using the CLOC....it goes to zero which affects the amount OWED regarding your LOC ....
Whereas with by example other places advance in bundles of say $100
Like with the overdraft I have with USAA...if I 'need' $26 to complete a transaction USAA will forward a full $100 increment (thus I owe $100)
Where with my Navy LOC my 'advance' would be exactly $26 against my LOC (and of course my checking account balance would be zero'd out prior to
being puished to BORROW......What Navy does it use your funds 1st before forcing you to borrow more debt....unless you clearly indicate you want to go LOC directly by using the Nav-Checks or go inside and inform the teller you WANT to pull from your LOC.....which IMO is cool)
@Anonymous wrote:
@JustcallmeTM wrote:
Since this doesnt count towards credit % it was also a tool I used earlier this year to dump all my store CC debt onto it so that I can close all the store cards and some regular cards I didn't use any longer.
The CLOC actually shows up on your credit reports under revolving and it does count toward credit utilization percentage, unless you pay it off in a week or two before it hits your reports for the month.
Glad it works for you, but 14% interest seems high to me and the interest starts to accumulate the day you utilize the CLOC. It seems if you are going to pay it off in 3 weeks anyway, as you mention that you do, that the better option would be to draw from a 0% offer on a credit card and then pay that off in your same three week time frame. Or choose to take longer if needed, since it is at 0%. Just a thought.
The way it shows up on the credit report is different according to which report your going to use aint it. IF your going to base it on Bankcard Enhanced FICO 8 for credit cards (all the ones we get for free) then it doesn't take into account the LOC since while it IS a revolving account it's still labeled a Line of Credit on the report not a credit card. Won't count towards the credit card % usage, it shows up under other/loan. Now if you was to say use the FICO 4/8 basic scoring model then yeah it would all be included into one group (revolving credit). I think the way it shows up on the credit report is based on which FICO your going to use.
When I did this it was me dumping 4-5 synch store cards with 25% apr rates, I really didn't have an option on a 0% BT card at the time, I had already opened 2 Amex and the LOC within 3 months and while I have 0% on the Amex I wasn't going to trust them with a BT compared to my CU who holds all my banking and knows my habits already. It was a good thing also since a month after getting the LOC my furnace went out and well LOC saved the day in a pinch without resorting to a loan or CC.