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Which banks provide the line of credit like US bank does?

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Valued Member

Which banks provide the line of credit like US bank does?

Which banks provide the line of credit like US bank does? I would like to open one or two new checking accounts with line of credit that is similar to US bank.  Anyone knows any bank provides the same service?

Message 1 of 11
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Community Leader
Super Contributor

Re: Which banks provide the line of credit like US bank does?

A lot of the CUs like NFCU and Penfed offer LOCs.

Message 2 of 11
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Community Leader
Super Contributor

Re: Which banks provide the line of credit like US bank does?

Some lenders like Citi, BofA, Discover, DCU and USAA allow you to use your credit cards with them as lines of credit or checking lines of credit.

I'd say its less costly than using an actual line of credit or personal loan in certain situations.
US bank's CLOC has crazy high interest rates.


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Message 3 of 11
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Valued Contributor

Re: Which banks provide the line of credit like US bank does?


@DotaK wrote:

Which banks provide the line of credit like US bank does? I would like to open one or two new checking accounts with line of credit that is similar to US bank.  Anyone knows any bank provides the same service?


US Bank offers both an overdraft line of credit (sometimes mentioned here as a checking line of credit CLOC) and they offer a personal line of credit. The personal line of credit (PLOC) can act as overdraft but has a higher limit and lower APR. Apparently you have to be a member of US Bank for 6-8 months before they will approve the PLOC. PenFed offers the same things; a CLOC and a PLOC so you would have to decide which works better for you. A CLOC usually can only be used if you are overdrawn whereas a PLOC can be used whenever you wish.

 

Most banks do offer some sort of CLOC or PLOC. The main exceptions are BofA and Chase. As another poster mentioned BofA and Chase only offer your credit card as overdraft protection-and it will be expensive. This method is considered a cash advance. 

 

Wells Fargo, Citibank (though I don't recommend theirs as it is like BofA and Chase except that it is actually a line of credit-confusingly), Key Bank, 5/3, PNC all offer a CLOC or PLOC. Remember that a PLOC is typically also used as overdraft protection but you can access the funds whenever you wish.

 

You did not mention your geographic location so I cannot be more specific. Basically, choose a bank (other than BofA and Chase) or credit union and review their website. Some of these financial institutions offer only a CLOC while others offer a PLOC that can be used as overdraft. Just be sure to read the terms and conditions to make sure that their line of credit will work for you. Wells Fargo and others charge an annual fee; others won't charge an annual fee but will charge a "per-fee" wherein they charge a fee to automatically transfer funds from your LOC into your checking account to cover an overdraft. Others, like Sun Trust, have an expiration date for your LOC wherien the LOC will be closed after say, 5 years. Basically, each bank/credit union is different so you will need to research the financial institutions that catch your eye.

 

TL DL : the easiest example for a bank that offers a US Bank-like LOC is Wells Fargo. 


Message 4 of 11
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Regular Contributor

Re: Which banks provide the line of credit like US bank does?

Will US bank do a HP to join and then another for the ploc when you’re eligible 6-8mo after joining? Might consider getting the Altitude Reserve in the future. Wonder if I can apply for Altitude card and ploc with same HP.

I’ve also been a member penfed for 9mo. While EQ score is strong, TU is stronger.

Do either banks require POI?
Message 5 of 11
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Moderator Emeritus

Re: Which banks provide the line of credit like US bank does?

DotaK one thing to look at too, ease of access to the Premier Line (PLOC) of credit. US Bank issues a Premier Line credit access card on the Visa network (works like a credit card and can be used exactly like a credit card with the charges showing on your PLOC); PLOC checks; ability to transfer by online, mobile and telephone monies directly from your PLOC without having to jump through a bunch of hoops or overdraft your account to get at the money. You can set up for auto pay partial or full each month. Note, the ability to transfer funds depending on what other products you have does NOT incurr a fee (need to read the fine print as their are exceptions). In traveling this wide world of banks and credit unions there are very few lenders that offer the flexibility of the US Bank product. Why? Don't know.

 

US Bank requires a person to be a customer (new or existing checking product) to obtain the product and they do use a "Customer Relations" Score which can help if a person needs a few extra points. While they like a longer periods of time to approve as you mentioned, some MyFicoers have obtained the PLOC in I think a few days not over a long time span. Yes, I have one and they offer it with credit lines of $5,000 to $25,000. The checking Reserves Lines run $500 to $5,000 (fixed interest rate of 21.9%) and are tied to a specific checking account. Also, US Bank has a Home Equity Line of Credit that can be established that works almost the same way as the PLOC (know you did not ask but extra info). Lastly, the interest rate is variable and as of December 2018 it was 12.50% for new PLOC Customers. Smiley Happy

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Message 6 of 11
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Community Leader
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Re: Which banks provide the line of credit like US bank does?

@CO_NATIVE , certain BofA and Citi cards allow transfers to your bank account that aren't considered cash advances but balance transfers. If using strictly for over draft protection I agree 100%.
This is what I mean by lower cost over using LOC or CLOC.
You can borrow $5000 for 18 months at 0% and only pay $150 in interest verses some of the other methods.


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Message 7 of 11
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Senior Contributor

Re: Which banks provide the line of credit like US bank does?

US Bank offers two LOC products; which one are you referring to?

 

The Reserve Line of Credit is basically checking overdraft protection at an extremely high interest rate.  Plus, US Bank will hard pull your TransUnion before approving the Reserve Line.  Personally I'm not a fan of hard pulls on credit reports for bank accounts.

 

The Premier Line of Credit acts like a true line of credit with access to a revolving credit line.





Message 8 of 11
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Moderator Emeritus

Re: Which banks provide the line of credit like US bank does?


@MaizeandBlue wrote:

US Bank offers two LOC products; which one are you referring to?

 

The Reserve Line of Credit is basically checking overdraft protection at an extremely high interest rate.  Plus, US Bank will hard pull your TransUnion before approving the Reserve Line.  Personally I'm not a fan of hard pulls on credit reports for bank accounts.

 

The Premier Line of Credit acts like a true line of credit with access to a revolving credit line.


US Bank did not do a hard pull from any of the three credit bureaus for my checking Reserve Lines (no hard inquiry), this could be YMMV. Also, you only pay 21.9% if you use it! In my mind I already explained in the post that the Premier Line of credit is a line of credit and it includes features of a credit card and more (will be a hard inquiry and US Bank does not always pull Trans Union as they pulled Equifax for my PLOC). As to the 21.9% being a high rate ... don't overdraft and it is a moot point. Glad I have it just in case ... that is why I have it not to use it as a supply of money).

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Message 9 of 11
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Community Leader
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Re: Which banks provide the line of credit like US bank does?

@Dinosaur,
They did HP me for the Reserve line of credit. US bank pulled TU.


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Message 10 of 11
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