is LOC score/debt based or?

ktl72455 · ‎05-31-2020

Ok I have a friend who went through a nasty divorce, had bounced checks and checking account was closed by bank. She paid everything for the husbands bounced checks but now has her own accounts at a local CRU and cant get over draft. So is wondering now that her life and credit has improved, she is in with navy now, 2 credit cards, would they consider a LOC the same as a over draft? Is it ran through chexsystem like a checking account overdraft is? Or is it based on her credit score etc.

From MI.
12/4/12 TU 589 MyFico ~EQ 579 MyFico ~EX 577(Fako)

Myfico 8 scores
6/12/20 TU 803 ~ EQ 814~ Ex 784
My Wallet: Cap1 3,500K ~FH 2950~Credit One 1750~Credit one #2 1250~Orchard Bank 400 ~NFCU nRewards 18,000~NFCU Cash Rewards 18,500 ~Care Credit 12000~Discover 6000~Lowes 5450~ Amex 5400.00 ~ Harvest King 8000 ~ Langley~Penfed~Service CRU~red stone cru~
UTL 17%

SouthJamaica · ‎05-31-2020

@ktl72455 wrote:
Ok I have a friend who went through a nasty divorce, had bounced checks and checking account was closed by bank. She paid everything for the husbands bounced checks but now has her own accounts at a local CRU and cant get over draft. So is wondering now that her life and credit has improved, she is in with navy now, 2 credit cards, would they consider a LOC the same as a over draft? Is it ran through chexsystem like a checking account overdraft is? Or is it based on her credit score etc.

NFCU offers an overdraft line of credit, which it calls a "checking line of credit" up to $15k. Approval is based on credit score, etc. In FICO it's scored the same as a credit card.

The interest rate is a little higher than most credit union personal lines of credit, but probably lower than what banks offer.