Personal Finance

Do PLOC ever get automatic limit increases?

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  • Jun 16th, 2021 9:11 am
[OP]
Sr. Member
Feb 18, 2019
528 posts
699 upvotes

Do PLOC ever get automatic limit increases?

I've had a 25K LOC with RBC for a while, never used until recently. I needed money short term so put about 19K on it for a few months, now it's paid off.

With credit cards (RBC included) usually if you come anywhere close to your limits like that, they offer you a pre approved increase. Does that ever happen for a PLOC?

Just curious.
10 replies
Deal Addict
Sep 14, 2012
1613 posts
1137 upvotes
Montreal, QC
DonkeyDoo wrote: I've had a 25K LOC with RBC for a while, never used until recently. I needed money short term so put about 19K on it for a few months, now it's paid off.

With credit cards (RBC included) usually if you come anywhere close to your limits like that, they offer you a pre approved increase. Does that ever happen for a PLOC?

Just curious.
I've had various lines of credits for over 25 years (I have 3 lines of credit). My 2 oldest ones are with RBC and TD Canada Trust and my newest one is with Tangerine.

I can say that based on my experience, they don't increase the unsecured line of credit limits without being asked to do so. I've never gotten any automatic increases for it and I've had to apply for increases with both TD Canada Trust and RBC. I've also had to apply for interest rate decreases.

The only thing that might happen automatically for personal lines of credit in my experience is credit limit decreases and interest rate increases
Deal Fanatic
User avatar
Aug 24, 2016
8325 posts
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The Prairies
My daughter and her husband both just received unsolicited limit increase of 10k each on their PLOC with RBC.
So it certainly does happen.
Deal Addict
Sep 14, 2012
1613 posts
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Montreal, QC
coolintheshade wrote: My daughter and her husband both just received unsolicited limit increase of 10k each on their PLOC with RBC.
So it certainly does happen.
That's weird since I've had my RBC unsecured line of credit for probably over 25 years and the limit was roughly $10k and they never increased it until this year when I contacted them to decrease the interest rate and increase the limit and they increased by roughly five times. However, it might also be cause I've never used my personal line of credits (with RBC and others) and this might be one of the criteria for them offering unsolicited increases.
Jr. Member
User avatar
Dec 31, 2007
117 posts
41 upvotes
Vancouver
I was also offered a pre-approved increase of $5,000 on my PLOC with RBC about 2 years ago. I had carried a balance on it up until this year when I paid it off.
Deal Guru
Dec 5, 2006
10027 posts
5171 upvotes
Markham
lmcjipo wrote: That's weird since I've had my RBC unsecured line of credit for probably over 25 years and the limit was roughly $10k and they never increased it until this year when I contacted them to decrease the interest rate and increase the limit and they increased by roughly five times. However, it might also be cause I've never used my personal line of credits (with RBC and others) and this might be one of the criteria for them offering unsolicited increases.
Utilization is important to trigger limit increases

But i am wondering whether it has something to do with Quebec? Because Unlike credit card, LOC limit increase doesn't need customer accept, they just increase it, so i am wondering whether there is some laws in Quebec that make limit increase on LOC is harder than other provinces
Deal Addict
Sep 14, 2012
1613 posts
1137 upvotes
Montreal, QC
smartie wrote: Utilization is important to trigger limit increases

But i am wondering whether it has something to do with Quebec? Because Unlike credit card, LOC limit increase doesn't need customer accept, they just increase it, so i am wondering whether there is some laws in Quebec that make limit increase on LOC is harder than other provinces
I believe the majority of the "major" changes to Quebec's "credit" law only started a few years ago and I've had my line of credit with RBC for probably over ~25 years and with TD Canada Trust probably over ~15 years (after getting it back when I cancelled it due to them charging a monthly or yearly fee since I don't believe in paying a monthly or yearly fee for something just to have it in case I might need it).

As mentioned, I can only speak for my situation and I've never had my lines of credit credit limit increased without me having to ask for it or my line of credit interest rate lowered without me having to ask for it... and going through whatever process the respective banks had in place.
Deal Fanatic
Dec 20, 2018
5234 posts
4277 upvotes
Not automatic, but I always get offers from them to increase my limit on my unsecured LOC and I just have to click yes to accept if I want to accept it

I have had CC limits increased on their own though

Fwiw: I've never carried balances on PLOC or credit cards. I have unsecured LOC with TD
Deal Addict
Sep 14, 2012
1613 posts
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Montreal, QC
StatsGuy wrote: Not automatic, but I always get offers from them to increase my limit on my unsecured LOC and I just have to click yes to accept if I want to accept it

I have had CC limits increased on their own though

Fwiw: I've never carried balances on PLOC or credit cards. I have unsecured LOC with TD
I believe that this is currently against the Canadian consumer/credit law. In the past (we are talking over 10 years ago, consumers would see automatic increases where they didn't have to accept the increase.
Deal Fanatic
Apr 5, 2016
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Calgary/Vancouver
I got limit increase offers from CIBC and BMO.
Sr. Member
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Jun 25, 2008
791 posts
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lmcjipo wrote: I believe that this is currently against the Canadian consumer/credit law. In the past (we are talking over 10 years ago, consumers would see automatic increases where they didn't have to accept the increase.
Yup, CC limits cannot be automatically increased, but LOC limits can be since the regulation only specifies Credit Cards.

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