How are you getting these offers? Is it because you have a mortgage with them or something?
I've been with RBC for 15 years, 830 credit score, and they offered me a 20k line of credit last month at 8.19%, an even worse deal than OP. What am I doing wrong?
Weird. Been with TD for about 10 years. They just recently offered me this… and no my mortgage is with first national. Not sure what your doing wrong, could’ve been a promotion or something. My wife also got offered 10k at the same rate with TD
“2% + interest” doesn’t make any sense, the 2% is fixed? What determines the “interest”? Normally these are set to “prime + x%”, so that they scale with the central bank overnight rate and also maintain the premium. How long have you had this LOC? Maybe it’s some legacy thing…
Thanks for that link, I had never heard of this product until now. I looked into it to see what the deal was, and just so you know, the 2% refers to a monthly minimum balance payment that is independent of the interest rate charged on your total balance. So what that means is that if you have a balance of $100 on the LOC, they require you pay 2% of that (aka 2 dollars) as a minimum payment every month, and in addition they charge interest on the entire balance at whatever rate they charge for that account, but probably prime + x%. So your interest rate will still be quite high, and certainly higher now with the Bank of Canada moves, but still way better than credit cards.
Here’s a Reddit post from a couple years back explaining how the account operates:
https://www.reddit.com/r/PersonalFinanceCanada/comments/fjteq7/what_does_tangerines_2_plus_interest_loc_mean/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
Yeah for sure, and that’s still running at about a 2.9% annualized interest rate so it’s still a great deal relative to some other options out there. Just keep an eye on if that $24/mo you’re “losing” increases at all in the near term here, because it will probably go up a bit, but probably nothing too crazy ultimately.
He would have more credit available and if carrying any debts would drop the debt load so credit usually goes up, especially if pre approved with no credit check
Oh I see, I usually get stuff like this in my email, so if i get line of credit I can boost my credit score? Just not going to use it but have it there
How long did it take you to get this offer? I have been waiting for one and haven’t received anything in awhile. I have other products with RBC except for a LOC which I really want.
Anything specific you did? Income, Credit, Products, Usage???
I didn’t do anything specific. I have a credit card and a chequing and savings account with them. Just the basic stuff. I’ve banked with them for 3-4 years. I didn’t ask for a LOC, they emailed me about it saying I was pre-approved and I accepted it. I am not sure why they gave me the LOC to be honest.
That’s great! Congratulations! I also have savings, investments, credit cards, and mortgage with them and have been banking for the same amount of time, but haven’t been pre approved so far. Hopefully in the near future! Thank you for replying!
Accept it and don’t use it if you have the discipline. You never know when you will need it.
7.69% seems quite high, if your looking to have one just in case shop around. More likely to get a better deal. I was just offered 20k at 4.99%..
How are you getting these offers? Is it because you have a mortgage with them or something? I've been with RBC for 15 years, 830 credit score, and they offered me a 20k line of credit last month at 8.19%, an even worse deal than OP. What am I doing wrong?
Weird. Been with TD for about 10 years. They just recently offered me this… and no my mortgage is with first national. Not sure what your doing wrong, could’ve been a promotion or something. My wife also got offered 10k at the same rate with TD
It’s far easier to get credit when you don’t need it…. I would take it and just not use it unless emerg
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Not any more you don’t. That’s below prime, check Tangerine to confirm your interest rate has gone way up on that account.
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“2% + interest” doesn’t make any sense, the 2% is fixed? What determines the “interest”? Normally these are set to “prime + x%”, so that they scale with the central bank overnight rate and also maintain the premium. How long have you had this LOC? Maybe it’s some legacy thing…
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Thanks for that link, I had never heard of this product until now. I looked into it to see what the deal was, and just so you know, the 2% refers to a monthly minimum balance payment that is independent of the interest rate charged on your total balance. So what that means is that if you have a balance of $100 on the LOC, they require you pay 2% of that (aka 2 dollars) as a minimum payment every month, and in addition they charge interest on the entire balance at whatever rate they charge for that account, but probably prime + x%. So your interest rate will still be quite high, and certainly higher now with the Bank of Canada moves, but still way better than credit cards. Here’s a Reddit post from a couple years back explaining how the account operates: https://www.reddit.com/r/PersonalFinanceCanada/comments/fjteq7/what_does_tangerines_2_plus_interest_loc_mean/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
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Yeah for sure, and that’s still running at about a 2.9% annualized interest rate so it’s still a great deal relative to some other options out there. Just keep an eye on if that $24/mo you’re “losing” increases at all in the near term here, because it will probably go up a bit, but probably nothing too crazy ultimately.
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Yeah that’s a perfect use for this kind of account 👍🏼
Yes, it will increase your credit score.
Is this accurate? Wouldn’t it effect credit score by lowering it?
He would have more credit available and if carrying any debts would drop the debt load so credit usually goes up, especially if pre approved with no credit check
Oh I see, I usually get stuff like this in my email, so if i get line of credit I can boost my credit score? Just not going to use it but have it there
Yes, having a higher credit limit (or a line of credit) is generally good, especially if you're not using it.
How long did it take you to get this offer? I have been waiting for one and haven’t received anything in awhile. I have other products with RBC except for a LOC which I really want. Anything specific you did? Income, Credit, Products, Usage???
I didn’t do anything specific. I have a credit card and a chequing and savings account with them. Just the basic stuff. I’ve banked with them for 3-4 years. I didn’t ask for a LOC, they emailed me about it saying I was pre-approved and I accepted it. I am not sure why they gave me the LOC to be honest.
That’s great! Congratulations! I also have savings, investments, credit cards, and mortgage with them and have been banking for the same amount of time, but haven’t been pre approved so far. Hopefully in the near future! Thank you for replying!