Personal Finance

Unsecured LOC rates and credit limit increase (currently CIBC)

  • Last Updated:
  • Nov 9th, 2020 6:19 pm
[OP]
Deal Addict
Mar 28, 2008
1523 posts
510 upvotes
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Unsecured LOC rates and credit limit increase (currently CIBC)

Currently have unsecured LOC at CIBC (had for about 11 years) with $25,500 limit and prime + 3.5%. I've been basically using it as a free chequing account and overdraft. Is that a decent amount/rate?

What's the potential of increasing the credit limit and/or asking for a better rate? What would the process typically be? I don't really want to go through a whole application process/proof of employment or whatever, but if it could automatically qualify like how my credit cards offer increases each year or so would be nice.
1 reply
Deal Addict
Sep 14, 2012
1614 posts
1137 upvotes
Montreal, QC
sprdave wrote: Currently have unsecured LOC at CIBC (had for about 11 years) with $25,500 limit and prime + 3.5%. I've been basically using it as a free chequing account and overdraft. Is that a decent amount/rate?

What's the potential of increasing the credit limit and/or asking for a better rate? What would the process typically be? I don't really want to go through a whole application process/proof of employment or whatever, but if it could automatically qualify like how my credit cards offer increases each year or so would be nice.
I would say that your rate is "decent" (not great but I wouldn't classify it as bad either).

You can refer to please-share-your-unsecured-line-credit ... s-1834473/ for examples of rates that others have gotten at other institutions.

I can only speak for myself and my lines of credit have not been increased nor has the interest rate changed for the positive without me speaking with the institution. I got all my unsecured lines of credit as a pre-approvals (I didn't ask any of the institutions who gave it to me for a line of credit) but after getting it, nothing changed in terms of an increase in credit limit or a lowering of the interest rate unless I asked for it and then was subjected to the standard credit application/check process.

During these times (of Covid-19), it is probably more difficult to get a credit limit increase or a decrease in the interest rate so I haven't tried it but I have done it in the past and was successful (with my unsecured line of credit with TD Canada Trust). I haven't tried it with my other 2 lines of credits at the other 2 financial institutions but would assume that the process and granting process (or declining process) is the same.

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