Personal Finance

Locked: Got an offer for a "pre-approved" line of credit with CIBC

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  • Jan 10th, 2018 9:46 am
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Newbie
Mar 14, 2011
19 posts
City

Got an offer for a "pre-approved" line of credit with CIBC

Hi guys,

I have recently gotten an offer from CIBC for a pre-approved $10,000 Prime + 3% Line of Credit.

I have recently began establishing my credit history (got a CIBC VISA card about a year ago), and have been paying it off on time. The credit card is essentially my only one other credit facility.

My question to you guys - should I accept the pre-approved offer, even though I have no immediate need for the Credit Line? Are there any negative reprecussions that might affect me attempting to get a mortgage in the next year? Or, are there no real downsides to accepting the "pre approved" offer?

Thanks for your time.
12 replies
Deal Addict
Oct 30, 2008
2120 posts
59 upvotes
Toronto
If you plan on getting a mortgage, it would actually help you. But then again, if you've had your VISA for a year and CIBC offered you a personal LOC, you clearly have some established credit history.
If I were in your situation, I would take it and use it only on occasion, paying it back right away. If they see no usage at all they may reduce the limit or close it altogether.
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Deal Expert
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Jun 14, 2003
23140 posts
202 upvotes
It is a no fee chequing account. Take it.
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Banned
Feb 17, 2007
3190 posts
203 upvotes
after you get this line of credit, close your chequing account
Newbie
Mar 14, 2011
19 posts
City
Thanks everyone for the responses!
Newbie
Jul 15, 2011
12 posts
I wonder what people have been getting from their banks in terms rates for these "pre-approved" unsecured LOCs?

RBC has been calling me to get me to accept a pre-approved for a $15k prime + 3.5% unsecured LOC. It seems like this isn't the best rate, and I've had a RBC VISA card for about 9 years now.
Banned
User avatar
Dec 1, 2011
2427 posts
342 upvotes
Winnipeg
TyrionLannister wrote: I wonder what people have been getting from their banks in terms rates for these "pre-approved" unsecured LOCs?

RBC has been calling me to get me to accept a pre-approved for a $15k prime + 3.5% unsecured LOC. It seems like this isn't the best rate, and I've had a RBC VISA card for about 9 years now.

If you've been doing business with RBC for quite some time, as it seems you have, and have a good payment history with them, as you must if they're offering an unsecured line of that size, I would certainly negotiate the rate with them. Tell them you'll accept the offer if they drop a point or two on the rate. Can't hurt to ask, the most that can happen is they say no. Then you just tell them you have a better offer elsewhere. Who knows.......
Deal Guru
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Sep 10, 2009
10900 posts
403 upvotes
GT&A
I got prime + 4.75 from CIBC, what did I do wrong?

It's not secured though, but I've been their customer for 6 years.
Always paying credit card bill in full, good account, score around 760.
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Banned
User avatar
Dec 1, 2011
2427 posts
342 upvotes
Winnipeg
longitude wrote: I got prime + 4.75 from CIBC, what did I do wrong?

It's not secured though, but I've been their customer for 6 years.
Always paying credit card bill in full, good account, score around 760.

The only thing you did wrong was accept the offer with that rate lol. No seriously though, you may still be able to negotiate a lower rate if your account is in good standing. Just tell them you got a better offer somewhere else, and you're thinking of switching. They may give you a better rate to keep you as a customer. It's worth asking. They sure aren't going to offer a better rate if you're willing to pay what you're paying
Deal Addict
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Jun 23, 2017
1510 posts
1076 upvotes
Toronto, ON
TyrionLannister wrote: I wonder what people have been getting from their banks in terms rates for these "pre-approved" unsecured LOCs?

RBC has been calling me to get me to accept a pre-approved for a $15k prime + 3.5% unsecured LOC. It seems like this isn't the best rate, and I've had a RBC VISA card for about 9 years now.
tell them that other banks are offering clients p+3% and ask if they can better or at least match.
Deal Addict
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Dec 17, 2008
2781 posts
2300 upvotes
Winnipeg
905P4N6 wrote: tell them that other banks are offering clients p+3% and ask if they can better or at least match.
6 years ago when this thread was started.... you might have had luck with that....now in 2018, Prime +3% is probably a good rate since many are offering far worse
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Deal Guru
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Aug 24, 2016
11667 posts
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Win-ter-peg
Shawguy wrote: 6 years ago when this thread was started.... you might have had luck with that....now in 2018, Prime +3% is probably a good rate since many are offering far worse
Seriously, threads should auto lock, or even purge after X amount of time with no posts, as many times the thread is littered with outdated information anyway.
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May 8, 2009
15560 posts
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Going to the Moon
Old thread, OP's post is based on outdated info. @905P4N6 has another thread on the topic. Locking thread.
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