Personal Finance

Please share your Unsecured Line of Credit interest rates and lenders

  • Last Updated:
  • Oct 1st, 2019 12:08 pm
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Sr. Member
Nov 9, 2017
557 posts
55 upvotes
qszwdxefc wrote:
Dec 31st, 2018 7:53 pm
Professional students get $300k unsecured at prime -0.25% lol... Go to the bank, smack down the admission letter, and no questions asked. They might also do a soft check at some point since you sign a paper authorizing that.
Must be a Canadian university or USA or can be from anywhere?
Sr. Member
Nov 9, 2017
557 posts
55 upvotes
financedude wrote:
Dec 11th, 2018 10:21 pm
Hey, mine are as follows!

CIBC unsecured line of credit, $30,000 at prime (3.95% at time of writing) plus 3% $30,000 at 6.95%
SIMPLII unsecured line of credit, $35,000 at prime (3.95% at time of writing) plus 4.85% $35,000 at 8.80%
TD unsecured line of credit, $30,000 at prime (3.95% at time of writing) plus 4.00% $35,000 at 7.95%
SCOTIA unsecured line of credit, $41,400 at prime (3.95% at time of writing) plus 2.75% $41,400 at 6.70%
How did you get all those LOC? by offer from the FI or by requesting it over time or is it attached to a mortgage or something? I usually get a $10,000.00 offer but once every 5 years or so.
Newbie
Dec 10, 2018
18 posts
15 upvotes
snowhite445 wrote:
Jan 1st, 2019 2:47 pm
How did you get all those LOC? by offer from the FI or by requesting it over time or is it attached to a mortgage or something? I usually get a $10,000.00 offer but once every 5 years or so.
Hey,

I applied for them over a period of 5-6 months. They are all unsecured and have no mortgages or secured assets against them.

Simplii, TD, and CIBC used Equifax to score me. My Equifax score was around 705-730 at the time of application for all of the above.

Scotiabank used Transunion to score me. My Transunion score was 773 when Scotiabank approved me for that ULOC.

I am 24 years old with income around $125,000, I have been at the same job for 2 years. I keep my utilization between 5%-10% and have a total of around $212,000 in active trade lines at time of writing.

My trade lines are as follows at time of writing:
Amex Cobalt $10,000
Amex Essential (personal favourite) $10,000
Cibc Aventura $10,000
Scotia Value Visa $500
TD Emerald Flex Rate $21,000
RBC Flex Rate Visa $5,000
Simplii ULOC $35,000
TD ULOC $30,000
Scotia ULOC $57,900
Cibc ULOC $30,000
CDN TIRE World Elite $2,500
Total: $211,900

Hope that helps and Happy New Year!!
Sr. Member
Nov 9, 2017
557 posts
55 upvotes
financedude wrote:
Jan 1st, 2019 3:02 pm
Hey,

I applied for them over a period of 5-6 months. They are all unsecured and have no mortgages or secured assets against them.

Simplii, TD, and CIBC used Equifax to score me. My Equifax score was around 705-730 at the time of application for all of the above.

Scotiabank used Transunion to score me. My Transunion score was 773 when Scotiabank approved me for that ULOC.

I am 24 years old with income around $125,000, I have been at the same job for 2 years. I keep my utilization between 5%-10% and have a total of around $212,000 in active trade lines at time of writing.

My trade lines are as follows at time of writing:
Amex Cobalt $10,000
Amex Essential (personal favourite) $10,000
Cibc Aventura $10,000
Scotia Value Visa $500
TD Emerald Flex Rate $21,000
RBC Flex Rate Visa $5,000
Simplii ULOC $35,000
TD ULOC $30,000
Scotia ULOC $57,900
Cibc ULOC $30,000
CDN TIRE World Elite $2,500
Total: $211,900

Hope that helps and Happy New Year!!

Thanks for details.
The rates seem pretty high (the 5-8%). What can one use LOC for with these high rates? Would you say people use it to buy real estate or invest otherwise or just to pay down higher interest loans like credit cards?
Newbie
Dec 10, 2018
18 posts
15 upvotes
snowhite445 wrote:
Jan 1st, 2019 6:52 pm
Thanks for details.
The rates seem pretty high (the 5-8%). What can one use LOC for with these high rates? Would you say people use it to buy real estate or invest otherwise or just to pay down higher interest loans like credit cards?
To be upfront my Scotia ULOC at 6.70% and Cibc ULOC at 6.95% are excellent rate wise. They are both ridiculously low rates for unsecured products.

Priority should always be to pay down or pay off higher interest debt first. Once that is done you can leverage your line of credit for RRSP contributions, investments, and anything you can pretty much think of. I use mine occasionally to buy and sell rare or high end vehicles, I drive them for a short period of time and usually profit off of them.

The issue with purchasing real estate or leveraging LOC to buy real estate is that mortgage providers and banks these days ask where the money is coming from AND ask you to keep it in a deposit account for almost 90 days.
Sr. Member
Nov 9, 2017
557 posts
55 upvotes
financedude wrote:
Jan 1st, 2019 7:14 pm
To be upfront my Scotia ULOC at 6.70% and Cibc ULOC at 6.95% are excellent rate wise. They are both ridiculously low rates for unsecured products.

Priority should always be to pay down or pay off higher interest debt first. Once that is done you can leverage your line of credit for RRSP contributions, investments, and anything you can pretty much think of. I use mine occasionally to buy and sell rare or high end vehicles, I drive them for a short period of time and usually profit off of them.

The issue with purchasing real estate or leveraging LOC to buy real estate is that mortgage providers and banks these days ask where the money is coming from AND ask you to keep it in a deposit account for almost 90 days.
I have to salute your risk taking spirit as I have not found the guts to do so myself on borrowed money. RRSP contributions (i.e. in High Interest Savings account) will not yield anywhere near as much as the 6.5% and also it is said that CASH did beat the stock market for 2018 because pretty much it all plummeted 20-30%. In fact, I have been looking for hands-off type of investment that would allow me to leverage the credit available to but it is impossible (I posted in another thread about this and others agree).

However, I admire that you have a niche found. I had a friend who used to buy used BMWs and drive for a summer etc but had a hard time selling them because people don't have $60k in cash to pay for it and rather finances or lease. But then again I don't think you mean those sort of cars and maybe dealing with antiques or much higher value?!
Newbie
Dec 10, 2018
18 posts
15 upvotes
snowhite445 wrote:
Jan 1st, 2019 7:56 pm
I have to salute your risk taking spirit as I have not found the guts to do so myself on borrowed money. RRSP contributions (i.e. in High Interest Savings account) will not yield anywhere near as much as the 6.5% and also it is said that CASH did beat the stock market for 2018 because pretty much it all plummeted 20-30%. In fact, I have been looking for hands-off type of investment that would allow me to leverage the credit available to but it is impossible (I posted in another thread about this and others agree).

However, I admire that you have a niche found. I had a friend who used to buy used BMWs and drive for a summer etc but had a hard time selling them because people don't have $60k in cash to pay for it and rather finances or lease. But then again I don't think you mean those sort of cars and maybe dealing with antiques or much higher value?!
I work in the automotive finance sector. The cars I sell, I do the financing for the individuals.

The return for me is amazing on RRSP contributions because of the taxable benefits I receive from it.
Member
Oct 13, 2008
396 posts
85 upvotes
Currently don't have LOC but have a few questions

1. Is there difference between applying via online or at a branch?
2. Does applying online (just to see what rate bank will offer) count as hard check on credit?
3. Currently looking at uLOC at CIBC since i already have CC with them - any reviews?
Member
Nov 24, 2015
299 posts
186 upvotes
Toronto, ON
zetx wrote:
Jan 2nd, 2019 8:59 pm
Currently don't have LOC but have a few questions

1. Is there difference between applying via online or at a branch?
2. Does applying online (just to see what rate bank will offer) count as hard check on credit?
3. Currently looking at uLOC at CIBC since i already have CC with them - any reviews?
1. I don't think if it makes a difference. But others can share their experience.

2. Yes. Interest rate will depend on your credit score. They will also verify your income to determine your credit limit.

3. My experience has not been good with CIBC. Some years ago they lowered my credit limit without giving me a reason. But CIBC has good products including professional lines of credit (unsecured).

Hope it helps.
Deal Addict
Apr 5, 2016
3491 posts
2106 upvotes
Calgary/Vancouver
snowhite445 wrote:
Jan 1st, 2019 2:46 pm
Must be a Canadian university or USA or can be from anywhere?
Fine print will indicate it has to be from an accredited Canadian or US university. Not even from those shady for profit universities. However, I'm sure if you go to a prestigious overseas university like Oxford or Cambridge, they'll be happy to give you the same rate and limit. My cousin got a PSLOC from BMO when she got accepted into Rotterdam School of Management. It was somewhat funny because the most difficult thing she had to prove wasn't potential income or the living/tuition expenses, she had to prove she will return back to Canada after her studies. I guess they don't want to fund a $200k PSLOC with the possibility my cousin decides she will never return to Canada.
Current Fido customer.
Ex Koodo customer.
Sr. Member
Nov 9, 2017
557 posts
55 upvotes
financedude wrote:
Jan 1st, 2019 8:07 pm
I work in the automotive finance sector. The cars I sell, I do the financing for the individuals.

The return for me is amazing on RRSP contributions because of the taxable benefits I receive from it.
Cars financing - now that is something I have never heard. One can setup financing for cars and use private money? I have heard real-estate agents getting onto financing deals but never thought it's possible in other industries.
It's amazing that you can use them in RRSP. I am assuming you are a savvy investor in stock market or mutual funds who can probably get 8-12% on yearly basis to beat the rate of the LOC?
Newbie
Dec 10, 2018
18 posts
15 upvotes
snowhite445 wrote:
Jan 3rd, 2019 1:46 am
Cars financing - now that is something I have never heard. One can setup financing for cars and use private money? I have heard real-estate agents getting onto financing deals but never thought it's possible in other industries.
It's amazing that you can use them in RRSP. I am assuming you are a savvy investor in stock market or mutual funds who can probably get 8-12% on yearly basis to beat the rate of the LOC?
I DO NOT use my personal money for vehicle loans, but I work in the automotive finance sector. So the individuals that purchase my cars for me, I help them arrange financing through Scotiabank, TD, RBC, etc etc.

2018 was pretty meh for my portfolio to be honest. 5.2% overall gain. Sure I didn’t get the 6.7% (LOC) that I used, but I do have more $$ saved now and I also got to offset my taxable income. Investment is all a game- I did pretty good with bitcoin at one point, made almost $15k in 6 weeks. Have not monitored bitcoin now so don’t know where it sits.
Deal Expert
Aug 22, 2011
28774 posts
14579 upvotes
Ottawa
financedude wrote:
Jan 3rd, 2019 6:24 am
I DO NOT use my personal money for vehicle loans, but I work in the automotive finance sector. So the individuals that purchase my cars for me, I help them arrange financing through Scotiabank, TD, RBC, etc etc.

2018 was pretty meh for my portfolio to be honest. 5.2% overall gain. Sure I didn’t get the 6.7% (LOC) that I used, but I do have more $$ saved now and I also got to offset my taxable income. Investment is all a game- I did pretty good with bitcoin at one point, made almost $15k in 6 weeks. Have not monitored bitcoin now so don’t know where it sits.
Hope you cashed out, as BTC is sitting at USD $3500.
Newbie
Dec 10, 2018
18 posts
15 upvotes
vkizzle wrote:
Jan 3rd, 2019 6:57 am
Hope you cashed out, as BTC is sitting at USD $3500.
Yup, holding zero now.

I actually sold my bitcoin holdings to help out some family back home. Life has a funny way of dealing you cards. I was upset about it but it dropped heavy after I sold it.
Sr. Member
Nov 9, 2017
557 posts
55 upvotes
financedude wrote:
Jan 3rd, 2019 6:24 am
I DO NOT use my personal money for vehicle loans, but I work in the automotive finance sector. So the individuals that purchase my cars for me, I help them arrange financing through Scotiabank, TD, RBC, etc etc.

2018 was pretty meh for my portfolio to be honest. 5.2% overall gain. Sure I didn’t get the 6.7% (LOC) that I used, but I do have more $$ saved now and I also got to offset my taxable income. Investment is all a game- I did pretty good with bitcoin at one point, made almost $15k in 6 weeks. Have not monitored bitcoin now so don’t know where it sits.
Not only you beat the market by like 20% in 2018 (because they are mostly down by 20%) but you also made 5% which is spectacular!
Yes, BTC had a golden time last year and those who caught the wind made easy money but took a lot of risk.

The RRSP bit still puzzles me though. If one's income is really high (in your case $125K/year + high end car sales profits which shoots you to or above cap of $26230 for 2018) that cap of ~$26K for RRSP is reached then one must have a lot of money than needed for expenses AND so those $$$ can go to RRSP contributions. In this case how would the ULOC $$$ have helped with RRSP? *unless one had to spend their income unexpectedly somewhere else (family or other emergencies) and still wanted to fill-up their RRSP account to the max to get the tax break. Am I going the right way with this or something else I am missing?

I am also assuming your RRSP is fully or partially invested in the stock portfolio that you mentioned because you are great at speculating.

If there was no emergency then technically ULOC was used to risk buying stocks from the market because income was already used to buy stocks (out of RRSP account) and I again salute you for that daring move.

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