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I have a personal Line of Credit at Coast Capital. Just wondering how "secure" this is. As in, can I be certain that it will still be there 6 months or 1 years from now, or can it be taken away at any time? Thinking about whether I can lean into this as part of my emergency budget.
 

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I would think it could be taken away anytime as its a demand credit facility. The question would then be "Is it likely to be taken away"? to which the answer is "No". The only circumstances that I could see it being cancelled would be a lack of liquidity or a run on the F/I (unlikely), a significant deterioration in your financial affairs, or misuse of some sort. I wouldn't worry about it.
 

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I did see some US news about quite a few credit cards having limits reduced, some even closed. It's not the same as a LoC but it's similar:

Nearly 50 Million Cardholders Had Credit Limits Reduced, Card Closed Involuntarily in Past Month | CompareCards

In that article, their advice is to use the card more so that it's not dormant or idle. Here's another, Canadian story, and in this case the people have been told that COVID-19 is the reason for reductions in credit:

Could COVID-19 affect your credit card limit?

And another (US)

https://creditcards.usnews.com/articles/could-covid-19-mean-lower-credit-card-limits

So the reasons aren't clear, but it sounds like it could be (a) the cards aren't used enough, or (b) banks are concerned about the credit risk for some people. In the modern age, more realistically, the decision is made by some kind of heuristic algorithm which probably factors in quite a few things... a magic box which grants or revokes credit.

I share the concern about losing my LoC. I think I'm going to go borrow $100 on it right now just to "exercise" it a bit, because normally it sits idle with nothing borrowed.
 
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