Canadian Money Forum banner

21 - 40 of 59 Posts

·
Registered
Joined
·
5,133 Posts
^ LOL!!!! Or it's the guilt-trip for having to offered an eye-popping "It used to be at 9.08%. whatever that is P+5.25%" ... if that's not close to a loan-shark rate, I don't know what it is. Especially, only 3 years ago????
 

·
Registered
Joined
·
5,133 Posts
^ Surely something must have triggered that 1 year promo-rate - good payment history? Maybe that letter is a sign to tell you now is the time to go in to negotiate for a more reasonable rate?
 

·
Registered
Joined
·
18,335 Posts
Thought I'd check into this again... has anyone here gotten an unsecured line of credit at one of these low rates like Prime+2% (currently around 5.5% to 6%) which they opened in the last couple of years?
I signed up for an offer TD sent me. Unsecured LoC at prime+2, currently 5.94%

So what should I do now that I have this? I'm supposed to build a deck or get a new kitchen, right? :excitement:
 

·
Registered
Joined
·
5,133 Posts
^ Do you first have a house (your own) to build the deck or get a new kitchen? No, then you can send me your $, I can use it ... to fix the roof.

Isn't a LOC to be used for rainy day o/w why did you apply or sign up for one? Free toaster? You do know that having multiple LOCs/cc affects your credit rating (not that you would have any problems given your occupation.)
 

·
Registered
Joined
·
18,335 Posts
Amazing that some people are getting prime + 0

^ Do you first have a house (your own) to build the deck or get a new kitchen? No, then you can send me your $, I can use it ... to fix the roof.

Isn't a LOC to be used for rainy day o/w why did you apply or sign up for one? Free toaster? You do know that having multiple LOCs/cc affects your credit rating (not that you would have any problems given your occupation.)
I don't have a house. Can't hurt to have it around as it's just extra liquidity. In my view I would have failed in my cash and liquidity management if I ever have to use this. For any routine expense or moderate surprise, I try to keep enough cash around. For a big surprise, I would take the money from my liquid investments.

Beaver101: regarding your roof, why not just take some money out of your investments? That's the purpose of investing and saving for the future, isn't it?
 

·
Registered
Joined
·
5,133 Posts
Amazing that some people are getting prime + 0
... yep, that you and I are subsidizing. I can bet frase is getting a prime rate LOC as a retired "member" of that financial institution.


I don't have a house. Can't hurt to have it around as it's just extra liquidity. In my view I would have failed in my cash and liquidity management if I ever have to use this. For any routine expense or moderate surprise, I try to keep enough cash around. For a big surprise, I would take the money from my liquid investments.

Beaver101: regarding your roof, why not just take some money out of your investments? That's the purpose of investing and saving for the future, isn't it?
... that's what I'll be doing as I ain't paying unnecessary interest.

Besides, the financial institution that issued my LOC told me "don't use it" if you don't want to pay Prime + some nosebleed rate (can't recall exactly what ATM) so I'm practicing what they told me.


Btw: I was just joking with the suggestion of sending your LOC my way. Wish you don't have to use your LOC ... ever. :encouragement:
 

·
Registered
Joined
·
10,746 Posts
... For any routine expense or moderate surprise, I try to keep enough cash around. For a big surprise, I would take the money from my liquid investments.

Beaver101: regarding your roof, why not just take some money out of your investments? That's the purpose of investing and saving for the future, isn't it?
... that's what I'll be doing as I ain't paying unnecessary interest.
OOH ... I've usually saved up for the new roof so not that much would be needed to be taken from investments.

OTOH ... had it been late 2008 to early 2009, using my HeLOC that was running at something above 2% may have been more attractive than selling in a down market.


Nice to have options though ...


Cheers
 

·
Registered
Joined
·
18,335 Posts
Agree, always nice to have options. The LOC doesn't have to be used and can sit idle for years.

I also like the flexibility of being able to borrow from the stock margin account. That one is 5.25% under 25K but it's secured.
 

·
Registered
Joined
·
5,133 Posts
^ No margin for me ... I'm debt-adverse. Can't afford it, don't buy it. Can't stand to lose, don't play either.
 

·
Registered
Joined
·
18,335 Posts
Pretty crazy looking at the move in the prime rate. I see that my LoC is now down to 4.94%

RBC and TD prime rate is now 2.95%
 

·
Registered
Joined
·
18,335 Posts
Does anyone know if I could lose the LoC (or the bank might increase the interest rate vs prime) if I don't have any activity on it for a few years? I really like having this thing and I don't want to lose it.

Since opening this, I've transferred a few dollars back and forth as a test but I've never left a balance that generates a monthly statement.

Would it help if I borrow $20 on it so that the bank registers an outstanding loan? Might it be "use it or lose it"?
 

·
Registered
Joined
·
13,063 Posts
Does anyone know if I could lose the LoC (or the bank might increase the interest rate vs prime) if I don't have any activity on it for a few years? I really like having this thing and I don't want to lose it.

Since opening this, I've transferred a few dollars back and forth as a test but I've never left a balance that generates a monthly statement.

Would it help if I borrow $20 on it so that the bank registers an outstanding loan? Might it be "use it or lose it"?
LOC incurs interest cost from day 1, no?
 

·
Registered
Joined
·
18,335 Posts
LOC incurs interest cost from day 1, no?
I think it should. I only borrowed from it for two days and paid it back immediately, so I don't think it accrued enough interest to show anything. I did not end up seeing any balance on my monthly statement.
 

·
Registered
Joined
·
1,125 Posts
Does anyone know if I could lose the LoC (or the bank might increase the interest rate vs prime) if I don't have any activity on it for a few years? I really like having this thing and I don't want to lose it.

Since opening this, I've transferred a few dollars back and forth as a test but I've never left a balance that generates a monthly statement.

Would it help if I borrow $20 on it so that the bank registers an outstanding loan? Might it be "use it or lose it"?
Rates can be increased at any time. When I worked at TD, it felt like a semi-regular occurrence.....annually? A small group of accounts (I’m guessing around 20,000) saw their rates go up. The rationale was never clear to me......probably some complex algorithm of unused accounts or changes in the customer‘s financial situation. There was always an appeal process for the customer which I would guess was successful 50%+ of the time.
 
21 - 40 of 59 Posts
Top