Canadian Money Forum banner

41 - 43 of 43 Posts

·
Registered
Joined
·
774 Posts
RBC just offered me an unsecured LoC at 8%, and I thought I had great credit.

How does one get an unsecured LoC at prime+1% or +2% ?
RBC just offered me an unsecured LoC at 8%, and I thought I had great credit.

How does one get an unsecured LoC at prime+1% or +2% ?
I would say that your rate depends on the overall value of the services and the "share of wallet" the F/I has of your total business. For example, if you have a mortgage at a low loan to value, fixed income deposits, brokerage, credit card, insurance, etc all with the same F/I and also have a high net worth with stable employment and a high credit score you will receive a better rate than most. I would also think that if your LOC is seldom you may get a better rate as it really doesn't cost the F/I much to offer the service. Perhaps if you said something like "I would like to transfer all of my business to you but would like a P+1% LOC rate" that they may be receptive.
 

·
Registered
Joined
·
2,971 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"?
My rates changed all the time with the most noticeable during the last downturn. I hardly ever used my LOC. They made so many changes, when I was going to, I called to the confirm the rate. It was something ridiculous, so I cancelled it. Ironically, when they tried to get my business back they offered me a really low rate. I didn't feel like playing that game.

I negotiated a current LOC with my bank that has all my banking, and I think it's p+1.5 for unsecured. At least it was the last time I checked.
 

·
Registered
Joined
·
16,640 Posts
I realize that the rate will change due to the changes in Prime, but I currently have Prime+2 and am hoping I can keep the +2 part of it.
 
41 - 43 of 43 Posts
Top