Unsecured LOC - what is a good rate right now?

[Zero102]

I'm wondering what sort of rates people are seeing on unsecured lines of credit? Right now we have a $10k unsecured LOC at prime + 2.25% at PC Financial and I was looking to raise the limit on the LOC to temporarily cover the cost of some renovations and am trying to figure out if the rate is reasonable or whether I should also be asking for a reduction there. We don't generally carry a balance, it has always just been for emergencies but we were looking at spending some money on the house then adjusting our financing to get the money back off the LOC. It's just for a few months so the rate doesn't really matter THAT much but I hate giving money to the bank.

[jacky4566]

That sounds like a reasonable rate to me. I currently have an unsecured student rate LOC at TD Prime Rate + 1.50%.

If you want a lower rate do you have any equity to put against it? Cars, toys?

[Xtrema]

Why not HELOC for renovation? You could be looking at a saving of 2%.

[tonytiger55]

For unsecured, rate is usually anywhere from 6 - 12 % at TD. The average being around 8/9%.

If your doing renovations, its not a bad idea to talk to the bank about getting a HELOC. The rate would be better and its generally a better suited product for the home reno's.

[gpomp]

My unsecured LOC at TD is 4.7% (prime +2)

[Mitsu3000gt]

I get offers in the mail all the time from TD offering me prime flat for a year, then it goes up to Prime +3% or whatever it is.

Since this is temporary, that sounds like something like that would be your best bet.

If you're paying more than 5.XX% or so for an unsecured LoC you're probably getting ripped off.

[chongkee_]

Originally posted by gpomp
My unsecured LOC at TD is 4.7% (prime +2)

Opened one from TD a month or so ago, got the same (prime + 1.9).

[ee2k]

+1.5 is what I have seen to be best for unsecured.

+.5 is what I have seen to be best for secured.

I have not seen any of the promotional one year or six month rates.

[Xtrema]

Originally posted by Mitsu3000gt
If you're paying more than 5.XX% or so for an unsecured LoC you're probably getting ripped off.

Or have not so good credit. Prime +1% to +2% should be the norm tho for unsecured. HELOC should be around Prime + or - 0.5%

[ee2k]

Originally posted by Xtrema


Or have not so good credit. Prime +1% to +2% should be the norm tho for unsecured. HELOC should be around Prime + or - 0.5%

This. Low interest rates are offered and/or negotiated based on merit.

[Zero102]

We are not doing a HELOC because we already have a mortgage on the property and although there is room left in the value of the property we have another way of paying it off in a couple months. First need to find out what the total cost is going to be because getting money out multiple times will be tough. It seemed simpler to just pay out of the LOC until we've finished the job then pay it back at the end. The total duration is likely to be just 2-3 months so getting then closing a HELOC would probably end up being a bad idea whereas the LOC we would just hang on to with the higher limit.

If prime + 1.5% is doing really well we're not bad at prime + 2.25% but I'll try to talk them down when we get the limit increased.

[ee2k]

If prime + 1.5% is doing really well we're not bad at prime + 2.25% but I'll try to talk them down when we get the limit increased. [/B]

If you intend to repay within a couple of months and not carry a balance, then the difference between 1.5 and 2.25 is negligible, and at times, worth not touching especially if your credit inquiries have had activity in recent times. If you were to keep a balance like $30000 for a few years, then every little bit counts. Also worth negotiating better rate if you're updating the LOC amount.

I personally can't be bothered by it for a couple of months.

[Zero102]

Originally posted by ee2k


If you intend to repay within a couple of months and not carry a balance, then the difference between 1.5 and 2.25 is negligible, and at times, worth not touching especially if your credit inquiries have had activity in recent times. If you were to keep a balance like $30000 for a few years, then every little bit counts. Also worth negotiating better rate if you're updating the LOC amount.

I personally can't be bothered by it for a couple of months.

A fair point but we need the limit raised anyway, I figured I would ask while I had them whether they would lower the rate but I didn't have a good idea of whether I was already at a low rate, sort of a "if they say no should I go elsewhere?" kind of thing

[msommers]

Fuck so prime + 3.50% sounds like I'm getting ripped! Mortgage renewal is up October, sounds like I better throw that in their face. My credit score is good, wonder if it's because I've been carrying a balance for the last year or something. #studentsalaryblows

[tonytiger55]

Originally posted by msommers
Fuck so prime + 3.50% sounds like I'm getting ripped! Mortgage renewal is up October, sounds like I better throw that in their face. My credit score is good, wonder if it's because I've been carrying a balance for the last year or something. #studentsalaryblows

Not necessarily. It could depend on different factors and financial profile.

The amount of times Ive had customers come in wanting a ULOC. They would go on about how their buddy got a good rate etc. Then they would sit there with their dick in thier hands rubbing one out whilst giving me the crazy eyes grinning. Then once I do their application the rate is not what they expected. They go nuts. They lose their hardon and their dick flops.
They rant on about how their friends got a good rate etc. So I ask them, do they know how much income their friends have, debit, savings etc? The usual answer is no, so they walk out sheepishly with the dick hanging between their legs.

Credit is based on four factors, income, savings, credit score and debit. That's why its going to be different for everyone.
Different banks target different demographics at times and it also depends on the flavour of the month and your personal financial profile. But yeah if your mortgage is up, plan a head, speak to a good professional.

[msommers]

Originally posted by tonytiger55


But yeah if your mortgage is up, plan a head,

So...don't pull my dick out?

[tonytiger55]

Originally posted by msommers


So...don't pull my dick out?

Speak to a seasoned adviser about your financial profile. Your income, debit, & savings. Figure out your short term plan and long term plan. I.e what are your financial plans for the next five years, 10 years. Do you have kids or is one on the way etc. Do you want to pay off your mortgage early?

So when you come to renew, Does your profile look healthy or risky? On your account does it look like you go macdonalds everyday, have big car payments, irregular savings pattern, are you living pay cheque to pay cheque, your financial profile poses a risk. Ok that is a extreme example but its common. But it reduces your ability to beat your mortgage renewal guy with your dick. You have no leverage to argue for a good rate.

...don't give the the crazy eyes.

[ExtraSlow]

This thread got unexpectedly sexy. I didn't expect to be turned on in the finance section of the forum, but well, here we are . . . .

[ee2k]

Originally posted by tonytiger55


Speak to a seasoned adviser about your financial profile. Your income, debit, & savings. Figure out your short term plan and long term plan. I.e what are your financial plans for the next five years, 10 years. Do you have kids or is one on the way etc. Do you want to pay off your mortgage early?

So when you come to renew, Does your profile look healthy or risky? On your account does it look like you go macdonalds everyday, have big car payments, irregular savings pattern, are you living pay cheque to pay cheque, your financial profile poses a risk. Ok that is a extreme example but its common. But it reduces your ability to beat your mortgage renewal guy with your dick. You have no leverage to argue for a good rate.

...don't give the the crazy eyes.

Tonytiger, what's the worst scenario you have seen? For educational purposes.

[sabad66]

Last year when i was shopping for a Personal LOC, BMO told me they are based on "base rate" and not the prime rate. "Base rate" = Prime + 3%

I ended up getting approved for base rate + 0.95%, so effectively i was getting prime + 3.95% which is 6.65% today.

I have pretty good credit and was told this is one of the better rates for PLOCs. Was i getting trolled with this whole "base rate" nonsense? I'm curious to know if anyone within the last year has received anything lower than 6.65% on a PLOC.

If you have an existing PLOC at prime + 1-3% i would say that's pretty good and doubtful you'll get much better than that unless you go to a HELOC.