What exactly is a CLOC for is it good? (NFCU)

[Anonymous]

My Navy CLOC is 15.90%.

[Anonymous]

I was lucky and got 13.9%

[Anonymous]

I'm waiting 3 months and then re-applying for CLOC.  I'm hoping to get the 13% and a higher limit.  I find the CLOC useful and I always pay it right back to avoid interest.  However, I might keep a balance occasionally.  Just last week I forgot it was my parents anniversary.  I wrote a cloc check and stuffed in a card! They thought I planned it!

[Anonymous]

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@Anonymous wrote:

I'm waiting 3 months and then re-applying for CLOC.  I'm hoping to get the 13% and a higher limit.  I find the CLOC useful and I always pay it right back to avoid interest.  However, I might keep a balance occasionally.  Just last week I forgot it was my parents anniversary.  I wrote a cloc check and stuffed in a card! They thought I planned it!

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You probably already know this. The CLOC starts accumulating interest as soon as it posts.

[Anonymous]

I noticed someone said to take out a certain amount on CLOC say 10k for example and BT that amount isn't that kind of taboo?

[Anonymous]

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@Anonymous wrote:
I noticed someone said to take out a certain amount on CLOC say 10k for example and BT that amount isn't that kind of taboo?

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Taboo? What do you mean?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

I'm waiting 3 months and then re-applying for CLOC.  I'm hoping to get the 13% and a higher limit.  I find the CLOC useful and I always pay it right back to avoid interest.  However, I might keep a balance occasionally.  Just last week I forgot it was my parents anniversary.  I wrote a cloc check and stuffed in a card! They thought I planned it!

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You probably already know this. The CLOC starts accumulating interest as soon as it posts.

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Yes. I should have said to lower interest not avoid interest,

[Anonymous]

Donny - Kind of like you're tricking the system? You're getting cash and sort of pretending to "transfer the balance" to another credit card with no cash advance fees or anything. I've read that some banks won't do a BT on a balance that is a cash advance.

That's why I thought it's kind of taboo no?

[UncleB]

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@Anonymous wrote:
Donny - Kind of like you're tricking the system? You're getting cash and sort of pretending to "transfer the balance" to another credit card with no cash advance fees or anything. I've read that some banks won't do a BT on a balance that is a cash advance.

That's why I thought it's kind of taboo no?

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There's no trickery involved, and it's not taboo by any means.  The only thing that's frowned upon by many around here is moving a balance around rather than actually working on paying it down, since that's a sign of financial distress rather than savvy financial management.

I've never heard of a bank being 'picky' about the type of credit account they pay off when a BT is done, as long as it's an actual credit account (some people have tried to use a BT to get money directly into their deposit account - with varying amounts of success - which might be considered 'trickery' by some).  Moving a balance from a credit card or CLOC/PLOC to a credit card with a lower APR isn't trickery, though... it's smart. 

[Anonymous]

UncleB - It's the same end result though isn't it?

Option A) You have a 10k CLOC write yourself a 10k check and the same day request a 10k BT to a card with 0% for 12-18 months. Result 10k cash in your account.

Option B) Request a 10k BT to a card with 12-18months 0% apr. Results in 10k cash in your account OR denial because there's no balance to transfer.

But both ways you end up with the same results so why is one shady/trickery but the other isn't?