Rates on Unsecured Lines of Credit

What are the best rates you guys are seeing on new applications for unsecured lines of credit these days?

Prime+1.5%?

P+3% or P+4% seems to be more common these days. Some people might be getting P+2% if their credit file is really solid.

I got a CIBC LOC in October last year and it was at P+3.25% and PCF was at P+5.5%!

There is one outlier in the ULOC market though, I was recently approved for a $25,000 P+1% ULOC at HSBC (required me to close 2 LOCs and a credit card), but the offer is exclusive to Premier clients only.

PCF has P+2.75% = 5% advertised right now.

http://www.banking.pcfinancial.ca/a/...?refId=sidenav

They typically don't have the best rates for LOCs, but at least you can compare against them.

Will a bank close out a loc if it's never used? I applied for one a year ago (car loan). Took to long to get approved at my bank so went elsewhere. Or should I just transfer money (within the same day to avoid interest fees) into chequing and back, just to keep it "active". I have a rainy day fund, but wouldn't mind keeping this just in case type of thing. Rbc is stupid, doesn't even "link" up to my chequing account. Oh well, I get free banking (15 debits a month) and use rewards cc for everything so...

If you are an engineer, National Bank has P+1% for ULOC.

If you are a nurse or a health-care professional, National Bank has P+0% for ULOC. Even better!

http://www.nbc.ca/bnc/cda/productfam...-16857,00.html

Saying that, I am not sure what limit they will give you for ULOC though.

Hehe, unless TD changes their rates on ULOCs, my ULOC rate will soon be lower than my HELOC rate.

Unfortunately, banks do not publish rates for unsecured lines of credit. To get the best deal, you have to wait for a promotion to come along. Currently, rates can range from P + 1% to P +7%.
Call around to several banks to see who is offering the lowest rate. Also, do some comparative shopping to see who is the lowest.

Originally Posted by tophomeloans

Unfortunately, banks do not publish rates for unsecured lines of credit. To get the best deal, you have to wait for a promotion to come along. Currently, rates can range from P + 1% to P +7%.
Call around to several banks to see who is offering the lowest rate. Also, do some comparative shopping to see who is the lowest.

How are you going to know the rate without having them do a check on credit.

Originally Posted by tophomeloans

Unfortunately, banks do not publish rates for unsecured lines of credit. To get the best deal, you have to wait for a promotion to come along. Currently, rates can range from P + 1% to P +7%.
Call around to several banks to see who is offering the lowest rate. Also, do some comparative shopping to see who is the lowest.

How do you know when the banks have a LOC promotion on? I see the promotions for opening chequing accounts and/or credit cards regularly, but don't recall ever seeing LOC promotions. Are they just internal bank things that you have to call to specifically ask about?

Originally Posted by evoviii

How are you going to know the rate without having them do a check on credit.

You don't... the rate offered is dependent on credit score.

When I opened my select service at TD I asked about a USLOC as well, because I have a 10K one with PCF and if I could move that over I could totally move all business to TD. But they offered me an absolutely TERRIBLE rate - something like 12.5%. My USLOC at PCF is like Prime + 2.5% or something.

Needless to say I did not open it.

Kind of confused why the rate was so horrible when I know my score is in the "good" range (mid 700s) - also was approved for the TD Infinite Visa at 10K with zero hassle.

Originally Posted by Thalo

You don't... the rate offered is dependent on credit score.

Which is why I don't understand how a promotion can be done on unsecured loc's.

I know different banks/credit analyst assess differently at each individual.

Originally Posted by brunes

When I opened my select service at TD I asked about a USLOC as well, because I have a 10K one with PCF and if I could move that over I could totally move all business to TD. But they offered me an absolutely TERRIBLE rate - something like 12.5%. My USLOC at PCF is like Prime + 2.5% or something.

Needless to say I did not open it.

Kind of confused why the rate was so horrible when I know my score is in the "good" range (mid 700s) - also was approved for the TD Infinite Visa at 10K with zero hassle.

the rates are based on credit score and relation
if you have nothing with TD, but a good credit score... your rate won't be that nice

Originally Posted by gq_fuzion

the rates are based on credit score and relation
if you have nothing with TD, but a good credit score... your rate won't be that nice

I did already have a relationship with TD (have RSP and US accounts there), and was there to bring them more business (go to Select Service, open a Visa, safe deposit box, etc), so I don't think that is why...

Maybe I just have too much unsecured credit.

Speaking of rates for Unsecured lines of credit - my friend has a score of 756 do you think he could get a good rate on an unsecured line of credit, assuming any? He has a job - making I believe $46k a year...What are you thoughts on this? I told him he should get one just in case - better to have one than not. Especially since his score is not too too bad.