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| Thursday, November 20, 2008 |
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Commonly
Asked Questions
 What
is the difference between a loan and a line of credit? How
can I access my line of credit? What
is overdraft protection? How
do I link my line of credit to my CFCU checking account for overdraft protection?
How
do I use a line of credit to pay off higher interest credit cards? How
do I use a loan to pay off higher interest credit cards? When
I access my personal line of credit, is there a minimum amount I must request?
Is
payment protection available? How
much money can I borrow? Who
do I contact for more information?
What is the difference between a loan and a line of credit? A loan is an amount of money that you borrow for a specified length of time. You make fixed monthly payments, which reduce the amount of the loan until it is paid in full. A line of credit, on the other hand, is an open-ended revolving credit line with a specified credit limit. It is similar to a credit card account, except you access the funds directly rather than with a plastic card. Your payment is based on the amount of the line you have used. The account is always available to you up to your pre-assigned credit limit. 
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How can I access my line of credit? You can access cash online through home banking, through Access 24, or by calling a CFCU branch. Back to
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What is overdraft protection? An overdraft occurs when the balance of your checking account is negative, resulting from writing a check or checks for an amount that total more than the balance in your account. With overdraft protection, your line of credit is linked to your CFCU Checking account so that when an overdraft occurs, funds are automatically transferred in $300 increments to cover the negative balance.
Back to Top How do I link my line of credit to my CFCU checking account for overdraft protection? Simply specify your CFCU checking account number when you apply. If you already have a CFCU line of credit, contact your local member service representative to sign up.
Back to Top How do I use a line of credit to pay off higher interest credit cards? Log on to your CFCU account online to transfer funds from your line of credit to your checking account and write a personal check to pay your creditors.
Back to Top How do I use a loan to pay off higher interest credit cards? Just deposit the loan proceeds into your checking account and use a personal check to pay off higher interest loans or credit cards. Or you can request that we pay your creditors directly after your loan has been approved.
Back to Top When I access my personal line of credit, is there a minimum amount I must request? You may access funds on your CFCU personal line of credit without limitations.
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Is payment protection available? Yes! CFCU makes available Payment Protection including Involuntary Unemployment Protection, which helps ensure that you can continue to make your monthly payments in the event of an unplanned emergency. Your loan officer can provide you with more information about the fees, benefits, and program eligibility requirements. Payment Protection is available for Personal Lines of Credit and Unsecured Loans.
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How much money can I borrow? CFCU offers unsecured personal loans and credit lines in amounts ranging from $500 to $20,000.
Back to Top Who do I contact for more information? Contact a CFCU branch.
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Loan Options
