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Pre-approved Royal Credit Line® account vs Tangerine Overdraft Protection

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  • Jan 3rd, 2016 1:50 am
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Deal Addict
May 15, 2013
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Pre-approved Royal Credit Line® account vs Tangerine Overdraft Protection

I was going to apply for a credit line with Tangerine after I had some difficulties recently with liquidity and coincidentally I've just received an offer from RBC with a pre-approved credit line.

I've never had one.

They don't disclose the credit line limit neither the rate. They want me to visit a branch.

Is it possible to negotiate when it's pre-approved or it's like take it like it is or nothing ?
Of course it'll be an unsecured credit line. Are RBC rates usually higher than Tangerine ones?

Thanks.
18 replies
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Mar 25, 2005
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iamthebest wrote: I was going to apply for a credit line with Tangerine after I had some difficulties recently with liquidity and coincidentally I've just received an offer from RBC with a pre-approved credit line.

I've never had one.

They don't disclose the credit line limit neither the rate. They want me to visit a branch.

Is it possible to negotiate when it's pre-approved or it's like take it like it is or nothing ?
Of course it'll be an unsecured credit line. Are RBC rates usually higher than Tangerine ones?

Thanks.
Overdraft and LOCs are two different products.
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Dec 17, 2008
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An unsecured LOC will have a lower rate than overdraft protection. (at least it should, if it doesn't.....that's a VERY bad rate)

A LOC is a very different product than an overdraft. Overdraft protection is short term and you pay it off. A LOC you can take as long as you want to pay it off as long as you make the minimum payments.
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Deal Addict
May 15, 2013
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Does Tangerine has credit line? I found only that they have Home Equity Line of Credit .
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iamthebest wrote: Does Tangerine has credit line? I found only that they have Home Equity Line of Credit .
Nope, no unsecured LOC.
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Dec 17, 2008
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Kasakato wrote: Nope, no unsecured LOC.
They used to have one (back in the ING days), I think the people who had it got to keep it and are grandfathered, but no new applications for a long time. (last offered in 2009 - any-alternatives-ing-direct-they-pissed ... g-1076140/ )
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Aug 9, 2011
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overdraft can be expensive when you use it. I'd go with the line of credit for sure
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Jan 2, 2015
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I'd go with both.

Nobody wants to use overdraft protection, but if something bad happens and you need it, you need it. It's better to pay $5 than $30 or $40 or whatever unprotected overdraft costs, and Tangerine doesn't charge fees just to have the overdraft. Furthermore, if it's "oops, I had money in savings but forgot to move it to chequing" you have a day to do just that.

Any overdraft will have high interest, of course, far higher than a typical unsecured line of credit. The name "whoops protection" was well-chosen, as it's better for fixing short-term mistakes than as a credit product. For longer-term cashflow problems, that's what the line of credit is for. That's why I say go with both.
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Aug 4, 2003
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Apple and an Orange. Have both.
Let the overdraft take care of immediate need and deposit a LoC cheque into Tangerine if the account won't go into positive before the end of the day.
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Dec 20, 2006
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Shawguy wrote: They used to have one (back in the ING days), I think the people who had it got to keep it and are grandfathered, but no new applications for a long time. (last offered in 2009 - any-alternatives-ing-direct-they-pissed ... g-1076140/ )
Yes, I got an offer for that old unsecured LOC from INGDirect after a few mths of opening an account in early 2000s. Stupid me!! I did not take it despite being pre-approved as I was in no urgent need at that time.
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May 15, 2013
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Thank for your answers. So, I'm going to accept my pre-approved credit line at RBC. For the records, I'll let you know what are the conditions they gave me.
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OP - if the letter you received doesn't have a limit or a rate, it is unlikely you received an actual pre-approval and most likely simply received a piece of marketing material inviting you to apply (regardless of what language was used)

If you need to go into a branch, that's another signal you need to do a whole application - once they pull your credit bureau they'll know what the limit and rate is, if you're even truly approved (they'll also ask for income confirmation). Btw - if you are eventually approved once you visit the branch, you can ask for a higher limit and lower rate than what they give you
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TodayHello wrote: OP - if the letter you received doesn't have a limit or a rate, it is unlikely you received an actual pre-approval and most likely simply received a piece of marketing material inviting you to apply (regardless of what language was used)

If you need to go into a branch, that's another signal you need to do a whole application - once they pull your credit bureau they'll know what the limit and rate is, if you're even truly approved (they'll also ask for income confirmation). Btw - if you are eventually approved once you visit the branch, you can ask for a higher limit and lower rate than what they give you
They sent me a private message through Online Banking:

From : RBC Royal Bank
Subject : You're pre-approved for a Royal Credit Line® account
Date : 14 Dec 2015 00:00:00

"Congratulations! You've been pre-approved1 for a Royal Credit Line account.

Save on interest costs and simplify your monthly payments!

This line of credit lets you save with an interest rate that is much lower than most credit cards. Plus, there are no annual or cash advance fees2. You can use your Royal Credit Line as an everyday tool to help you pay down your higher interest debts.

The flexibility of your new Royal Credit Line:

24/7 access to your credit limit use online, mobile3 or telephone banking, or visit any RBC Royal Bank® branch during business hours when you want access. You can also withdraw or transfer money at any RBC® ATM, or write cheques from your Royal Credit Line account.

Source of reusable funds when you pay down your Royal Credit Line account balance, your credit becomes available again.

Payment options decide how much you want to pay that month pay as little as interest only4 or more if you want to pay your balances off faster.


You're already pre-approved no need to apply. To say YES to this limited- time offer, visit your local branch or call 1-866-776-4994 by February 15, 2016.

Be sure to ask about LoanProtector®5 insurance for your Royal Credit Line account. It's critical illness, disability and life insurance coverage that can help protect your lifestyle and all you have achieved. You only pay for the coverage you need and you can cancel at any time. Call 1-800-769-2523 today to apply.

®/TM Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Personal lending products are offered by Royal Bank of Canada and are subject to standard lending criteria. 1 Your pre-set credit limit has been pre-approved for this Royal Credit Line account offer. This pre-approved offer is exclusive to you. If you need to add a co-borrower on your Royal Credit Line account, you will be required to complete a full application. 2 Two Royal Credit Line cheques may be written during each monthly cycle without charge. A $2.00 Royal Credit Line Cheque Fee applies to each cheque thereafter. 3 RBC Mobile Banking and RBC Online Banking are provided by Royal Bank of Canada. You will need access to Online Banking to be able to use the Mobile Banking app. 4 The minimum payment is the accrued interest, service fees and any other charges that apply for that period, including your LoanProtector insurance premium and taxes, if applicable. 5 LoanProtector is a creditor's group insurance program underwritten by The Canada Life Assurance Company and is subject to terms, conditions, exclusions and eligibility restrictions".
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Jun 2, 2006
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OP what the user below said is correct. Make sure it is not a conditional pre-approval. If it is your bureau is pulled and the approval is not guaranteed and income etc may be verified. True pre-approvals have set limits and a rate and do not pull your credit bureau with RBC RCL pre-approvals. Credit card pre-approvals even if guaranteed are the ones with RBC that ALWAYS pull your credit bureau. Overdraft pre-approvals with RBC do not pull your credit bureau and are guaranteed.

Hope this clears up any pre-approval questions with this particular institution.
TodayHello wrote: OP - if the letter you received doesn't have a limit or a rate, it is unlikely you received an actual pre-approval and most likely simply received a piece of marketing material inviting you to apply (regardless of what language was used)

If you need to go into a branch, that's another signal you need to do a whole application - once they pull your credit bureau they'll know what the limit and rate is, if you're even truly approved (they'll also ask for income confirmation). Btw - if you are eventually approved once you visit the branch, you can ask for a higher limit and lower rate than what they give you
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If op waits for a couple of more months, they will send one with an actual amount that the bank will offer for his rcl. This is usually the trend.
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iamthebest wrote: They sent me a private message through Online Banking:

From : RBC Royal Bank
Subject : You're pre-approved for a Royal Credit Line® account
Date : 14 Dec 2015 00:00:00

"Congratulations! You've been pre-approved1 for a Royal Credit Line account.

Save on interest costs and simplify your monthly payments!

This line of credit lets you save with an interest rate that is much lower than most credit cards. Plus, there are no annual or cash advance fees2. You can use your Royal Credit Line as an everyday tool to help you pay down your higher interest debts.

The flexibility of your new Royal Credit Line:

24/7 access to your credit limit use online, mobile3 or telephone banking, or visit any RBC Royal Bank® branch during business hours when you want access. You can also withdraw or transfer money at any RBC® ATM, or write cheques from your Royal Credit Line account.

Source of reusable funds when you pay down your Royal Credit Line account balance, your credit becomes available again.

Payment options decide how much you want to pay that month pay as little as interest only4 or more if you want to pay your balances off faster.


You're already pre-approved no need to apply. To say YES to this limited- time offer, visit your local branch or call 1-866-776-4994 by February 15, 2016.

Be sure to ask about LoanProtector®5 insurance for your Royal Credit Line account. It's critical illness, disability and life insurance coverage that can help protect your lifestyle and all you have achieved. You only pay for the coverage you need and you can cancel at any time. Call 1-800-769-2523 today to apply.

®/TM Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Personal lending products are offered by Royal Bank of Canada and are subject to standard lending criteria. 1 Your pre-set credit limit has been pre-approved for this Royal Credit Line account offer. This pre-approved offer is exclusive to you. If you need to add a co-borrower on your Royal Credit Line account, you will be required to complete a full application. 2 Two Royal Credit Line cheques may be written during each monthly cycle without charge. A $2.00 Royal Credit Line Cheque Fee applies to each cheque thereafter. 3 RBC Mobile Banking and RBC Online Banking are provided by Royal Bank of Canada. You will need access to Online Banking to be able to use the Mobile Banking app. 4 The minimum payment is the accrued interest, service fees and any other charges that apply for that period, including your LoanProtector insurance premium and taxes, if applicable. 5 LoanProtector is a creditor's group insurance program underwritten by The Canada Life Assurance Company and is subject to terms, conditions, exclusions and eligibility restrictions".
Interesting - sounds like a true pre-approval.

Call and find out and let us know!
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Nov 11, 2008
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Yeah let us know what your rate is...mine's Prime +2
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May 15, 2013
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imflying12 wrote: If op waits for a couple of more months, they will send one with an actual amount that the bank will offer for his rcl. This is usually the trend.
You were right to a certain extent :razz:

I received by mail the written offer with details, however it was just 1 week after ......

They give me Prime rate + 3.99% = 6.69% today and $10K.

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