Personal Finance

Rates to expect from personal Line of Credits?

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  • Sep 8th, 2017 12:48 am
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Member
Jan 21, 2012
388 posts
102 upvotes

Rates to expect from personal Line of Credits?

I was recently offered an unsecured line of credit of $25,000 with a rate of 9.30%. This is the result of TD Prime Rate + 6.35%.

Is this a good rate? What rates would you normally expect to have from other banks or institutions? I'm planning on mainly using this to cover unexpected expenses and some investments.
18 replies
Sr. Member
Nov 13, 2009
660 posts
306 upvotes
Oakville
I recently got accepted for a td loc with a similar rate
My credit score is more than 760
No debt other than mortgage
So it looks like it's the norm for td to give a loc with 10% rate
Member
Jan 21, 2012
388 posts
102 upvotes
mohammedessam wrote: I recently got accepted for a td loc with a similar rate
My credit score is more than 760
No debt other than mortgage
So it looks like it's the norm for td to give a loc with 10% rate
Was this a pre-approval or did you apply? My credit score is currently 793 as well.
Sr. Member
Nov 13, 2009
660 posts
306 upvotes
Oakville
BrandonChow wrote: Was this a pre-approval or did you apply? My credit score is currently 793 as well.
No I applied for it online and they approved me within 24 hours
But I'm not using it at this rate
I'll just leave it until they decide to lower the rate
Member
Jan 21, 2012
388 posts
102 upvotes
mohammedessam wrote: No I applied for it online and they approved me within 24 hours
But I'm not using it at this rate
I'll just leave it until they decide to lower the rate
Okay this is the same process I went through as well. I'm going to get in touch with them and see if its possible to get it lowered.
Jr. Member
Feb 4, 2017
137 posts
33 upvotes
I was offered 30k unsecured for 7.65% from RBC. It was pre-approved. Should i take this? I dont need it.... but i feel its good to have it for emergency.
Deal Fanatic
Apr 5, 2016
6116 posts
4613 upvotes
Calgary/Vancouver
I have a $15k unsecured LOC from CIBC at prime +3% so 5.95%.
Member
Jan 21, 2012
388 posts
102 upvotes
bhushh009 wrote: I was offered 30k unsecured for 7.65% from RBC. It was pre-approved. Should i take this? I dont need it.... but i feel its good to have it for emergency.
It depends on what the uses cases are. It does seem to be a bit higher than other ones I've seen. What is your credit score?
Member
Jan 21, 2012
388 posts
102 upvotes
bomber17 wrote: I have a $15k unsecured LOC from CIBC at prime +3% so 5.95%.
May I ask what your credit score is? Do you have a lot of products and services with CIBC?
Deal Fanatic
Apr 5, 2016
6116 posts
4613 upvotes
Calgary/Vancouver
BrandonChow wrote: May I ask what your credit score is? Do you have a lot of products and services with CIBC?
Credit score is 800+. I actually do have a lot of products and services from CIBC. Mortgage, HELOC (Prime + 0.50%), chequing and TFSA account.

They actually offered the personal LOC to me as I have no real use for one.
Deal Guru
User avatar
Aug 24, 2016
11666 posts
14020 upvotes
Win-ter-peg
BrandonChow wrote: It depends on what the uses cases are. It does seem to be a bit higher than other ones I've seen. What is your credit score?
There's a lot more than credit score to qualify for a ULOC.
Capacity and net worth is far more important.
Banned
User avatar
Mar 9, 2012
815 posts
430 upvotes
Drummondville, QC
bhushh009 wrote: I was offered 30k unsecured for 7.65% from RBC. It was pre-approved. Should i take this? I dont need it.... but i feel its good to have it for emergency.
It's when you don't need credit that you receive offers; it's when you need credit that you won't qualify for it. Up to you.
Current credit card set up:
CIBC Dividend Visa Infinite: 4% groceries, 4% gas, 2% transit, 2% restaurants, 2% recurring bills
Tangerine MC World: 2% drugstore, 2% home improvement, 2% hotel-motel
Deal Addict
User avatar
Dec 4, 2007
4869 posts
2743 upvotes
Quebec
I personnaly find that we have way too much different thread of the exact same subjet of unsecure line of credit.

Limit 20k
TD unsecure
Opened in may 2017
Interest Rate
7.14%

TD Prime Rate+4.19%
As of Jul 27, 2017

Credit score unknown
10k mastercard balance 0
No car paiement
No mortgage on house
Income 24k years
Deal Addict
Oct 12, 2014
1051 posts
201 upvotes
Ajax
I currently have a 50k personal LOC with RBC that is at (Prime + 2.25%) = 5.2%.

Scotia is offering me Prime + 1.5% = 4.45%.

Is there a way to process a simple switch over (i.e. close RBC, open Scotia) without a major credit check?
Deal Addict
Oct 12, 2014
1051 posts
201 upvotes
Ajax
yellowlight18 wrote: I currently have a 50k personal LOC with RBC that is at (Prime + 2.25%) = 5.2%.

Scotia is offering me Prime + 1.5% = 4.45%.

Is there a way to process a simple switch over (i.e. close RBC, open Scotia) without a major credit check?
Any help?
Deal Addict
User avatar
Apr 16, 2009
1389 posts
624 upvotes
Halifax
yellowlight18 wrote: Any help?
Nope. Just the normal open/close. Depends if you think it's worth it to switch over. The credit hit is only temporary.

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