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Discussion Starter #1
To make my budget as precise as possible, I need to know how to calculate the minimum monthly payment on my Line of Credit. I asked two people of the bank, but no one knows how to calculate it...

Let's say I owe $10,000 right now and my interest rate is 5%. What will be the payment taken out of my bank account on July 12? Thanks.
 

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Unsecured lines of credit work a little different than a secured line of credit (like a HELOC). A HELOC requires interest only, but an unsecured LOC will require a min of 3% of balance payment/month (with CIBC anyways).
 

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Discussion Starter #6
Unsecured lines of credit work a little different than a secured line of credit (like a HELOC). A HELOC requires interest only, but an unsecured LOC will require a min of 3% of balance payment/month (with CIBC anyways).
Mine is an unsecured one, then. It is with CIBC. I will calculate if 3% is the correct percentage. What does "unsecure" mean? Thanks.
 

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Secured = secured against a physical asset, usually either the equity in your house ("home equity line of credit") or a CD or bond held at the issuing institution.

Unsecured = no physical asset is pledged as guarantee.
 

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Discussion Starter #8
Secured = secured against a physical asset, usually either the equity in your house ("home equity line of credit") or a CD or bond held at the issuing institution.

Unsecured = no physical asset is pledged as guarantee.
No doubt about it, mine is unsecured.
 
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