Unsecured Line of Credit

[rain111]

I'm looking for an unsecured line of credit with cheap borrowing cost. What is the average rate out there? Prime + 1%? Does anybody have connection with a lender? My financial picture is pretty good have about 100k assets and 50k loans and a solid credit history.

Thanks in advance.

[TrevorK]

If you get an unsecured line of credit, the amount you get is typically based on your income level (As they don't secure it against any assets)

[PennyArcade]

Mine is prime + 2% at CIBC. I don't use it though, just have it to improve my credit rating.

[Jono]

I have prime+2 at CIBC. At BMO they gave me prime+1.75 because I also have my mortgage with them. BMO is also having a promotion right now where your LOC is at prime until the end of June.

For those who don't have one, it is worth looking into. Just having a line of credit accessible to you makes it easier when you have to make a big purchase and don't want to worry about getting all of your cash into one account in time (without the bank holding funds either) to make the purchase. There is no charge for the line of credit unless you use it, and the interest rates are far better than any credit card for emergencies. My BMO LOC can be accessed either through electronic transfer, cheques, or using a special Mastercard. Plus if you ever find yourself a few dollars short of your credit card payment, pay it off using your line of credit and avoid incuring the double digit interest rates on the credit card.

[v00d00]

Mine is prime + 2% at CIBC. I don't use it though, just have it to improve my credit rating.
Lol.. how exactly is just having a line of credit without using it ever going to improve your credit rating?

That's absurd.

[Kevinck]

Lol.. how exactly is just having a line of credit without using it ever going to improve your credit rating?
That's absurd.

No one seems to think it absurd when people say having a CC and not using it will improve your credit rating. But I must admit I can't remember if I ever heard that from someone who actually knew or if it was just assumed.

Do we have a resident banker to answer these questions? I've always assumed that having any sort of credit available to you (CC or line of credit) wether you use it or not helps improve your credit rating. The longer you've had credit available to you and not misused it (not paying a bill on time) the better it looks for you. Doesn't matter wether you use it or not, just having it and never having overdue payments is all positive. But i could be wrong.

[Sylvestre]

Lol.. how exactly is just having a line of credit without using it ever going to improve your credit rating?

That's absurd.


one of the functions in calculating your credit score is the amount of credit already available (but not used) that you have, and the length of time this money has been available to you.

Using it doesn't have as large an effect as you think.

[nchopra]

I have an unsecured credit line at prime + 1/4 (used to be prime until they changed their bank rate definition) with BMO. Don't use it anymore because of their definitional change.

[canabiz]

I've been trying to apply for an unsecured line of credit with my bank Royal for a while but hasn't been succesful

I guess the requirements are pretty stringent but i got a new job with better pay than the previous ones and i just made some payments towards my OSAP so hopefully i should get that soon

And yes that's very handy to have, beat those murderous CC rates by a mile!

[v00d00]

No one seems to think it absurd when people say having a CC and not using it will improve your credit rating. But I must admit I can't remember if I ever heard that from someone who actually knew or if it was just assumed.
Not so, I have been told by a relative working in debt consolidation and bankruptcy, that having credit and not using it will never improve your credit rating.

They said they have seen examples of people who got a credit card when they were young and just kept it without using it.. then when they went for a mortgage years later they were denied (to their surprise) because of lack of credit.

The best way to get a better credit rating, is to USE the credit given to you.. and always pay the minimum balances, or better yet just pay it off.

I had been telling my girlfriend that for years.. which is why she has little credit, meanwhile I have amazing credit.. difference being I use mine. So I brought it up with my relative and she said the best thing for her to do is pay for all the transactions she previously paid with debit, on her credit card. Then go straight home and use online banking and transfer money from your bank account onto the credit card.

Not only will that cut down on debit transaction fee's, but it will dramatically increase your credit rating and quick.

[chuckieland]

you know the best way to get line of credit is not going to the branch.
we all know that banker is always under sales quota pressure, but when you go to branch, they play hard ball.
i once went to branch to increase my line of credit, they play hard, want everything little detail, and so much work on my part, and need 2 week for decision. so i say forget it.
then i went to this business gala, met some bankers from different bank.
the CIBC banker call me on the first business day, offer me 40000 unsecure line of credit. and instant approvel on the phone.
see the difference?

[TrevorK]

you know the best way to get line of credit is not going to the branch.
we all know that banker is always under sales quota pressure, but when you go to branch, they play hard ball.
i once went to branch to increase my line of credit, they play hard, want everything little detail, and so much work on my part, and need 2 week for decision. so i say forget it.
then i went to this business gala, met some bankers from different bank.
the CIBC banker call me on the first business day, offer me 40000 unsecure line of credit. and instant approvel on the phone.
see the difference?


$40,000 with no approval needed (Verification of income, assets, etc...)?

********