Personal Line of Credit charges difference between banks
Hello
First post sorry if it is in the wrong place. Just wanted to compare and ask somethings.
I am with Scotiabank and have an unsecured ploc 15k at prime+2
Have not used it at all but was just about to use it and had questions about how PLOC at other banks work.
So the Scotiabank rep told me that if I borrow 10,000 I would immediately be charged interest my 5% rate so 500 so 10,500 would be the actual charge. On top of that I would be paying daily interest charged monthly on the balance whatever the balance maybe until it is all paid off.
So lets say my first Scotiabank statement would say 10,000+500+42 interest would be on the 10000 not the 500 so if i paid 1542 then the following statement would say 9000+38 and so on until paid off.
I was told by someone that CIBC DOES NOT take that percent upfront but instead just charges you interest on the balance monthly. So CIBC would be 10,000+42 pay just 1042 then 9000+38 and so on until paid off.
Not the best at math so my calculations could be wrong I rounded up.
My main concern is, is Scotiabank bank the only bank doing this or do they all do it and I was just given wrong information?
Anyone with CIBC unsecured PLOC confirm this?
Anyone with Scotiabank tell me how you where charged?
The account was opened last December so it has been unused.
If this is correct is Scotiabank really that bad that they do this while other banks do not?
If other banks do it then fine but if it is true that CIBC doesn't then that is a complete rip off banking with Scotia.
What about other banks how where you charged on your unsecured PLOC loans?
Thank You in advance.
First post sorry if it is in the wrong place. Just wanted to compare and ask somethings.
I am with Scotiabank and have an unsecured ploc 15k at prime+2
Have not used it at all but was just about to use it and had questions about how PLOC at other banks work.
So the Scotiabank rep told me that if I borrow 10,000 I would immediately be charged interest my 5% rate so 500 so 10,500 would be the actual charge. On top of that I would be paying daily interest charged monthly on the balance whatever the balance maybe until it is all paid off.
So lets say my first Scotiabank statement would say 10,000+500+42 interest would be on the 10000 not the 500 so if i paid 1542 then the following statement would say 9000+38 and so on until paid off.
I was told by someone that CIBC DOES NOT take that percent upfront but instead just charges you interest on the balance monthly. So CIBC would be 10,000+42 pay just 1042 then 9000+38 and so on until paid off.
Not the best at math so my calculations could be wrong I rounded up.
My main concern is, is Scotiabank bank the only bank doing this or do they all do it and I was just given wrong information?
Anyone with CIBC unsecured PLOC confirm this?
Anyone with Scotiabank tell me how you where charged?
The account was opened last December so it has been unused.
If this is correct is Scotiabank really that bad that they do this while other banks do not?
If other banks do it then fine but if it is true that CIBC doesn't then that is a complete rip off banking with Scotia.
What about other banks how where you charged on your unsecured PLOC loans?
Thank You in advance.