Unsecured LOC - what is a good rate right now?

[Xtrema]

Originally posted by tonytiger55
Not necessarily. It could depend on different factors and financial profile.

TLDR, The best loan rate are given to people who don't need loans.

[tonytiger55]

I had a wohoo girl come in one time. You know the type, the hot girl in the bar that is always bitchy to you, but complains about never being able to find a nice guy, ugg boots, has one of those fucking ugly little dogs, late 20's early thirties who has not got her shit together, always going to vegas with her bunnies etc.. you get the picture..

Anyways.... She comes in wanting to increase her line of credit. She giving me the bitchy sexy eyes. Holy shit man, she got her nails done, eye lashes etc. Im starting to sweat.

Her line of credit is already at 3K maxed. She does not pay her credit card on time, she carries a balance. He chequing account carries a negative balance at times.. Ok, she makes good money (hell a lot more then me and it makes me cry), but where does her cash go?

So as she is talking, im asking about her job, life (this is to get a idea of her financial profile etc). I ask her about her savings and I ask why not put something aside. She tells me about her student loan of about 3k that she has been struggling to pay off. I go through her account history. She made good money and I really could not see why it too so long to pay off. It was paid off, but now she has a line of credit she keeps dipping into for her wohoo lifestyle.
So whilst she is talking im looking at her account, She is bullshitting... she goes starbucks 4 times a day, drops in hot yoga, liquor store Fridays, hitting the bars etc. Im not making this shit up.

Basically she does not live within her means and I can tell just by looking at her account she just wont be approved. So im not going to do the application. I talk to her about getting her profile healthy so in future if she wants to I can do it. But really, she needs to get her shit together.
She gets mad at me. I explain to her why i can't do it. I can't tell where her money goes (no savings, ongoing credit card balance etc). She demands to speak to my manager. Im sweating like mad, she's got one of those resting bitch faces now.

I go to my manager and he is like like wow she is hot, but tell her she does not live within her means and stop wasting my time.
I waddle back to my office, she gets mad and storms out and goes on about how she had a student loan and thats why she could not save etc...

The real reason she wanted to increase her line of credit? Her bunny is getting married in the Bahamas and she needed money to go.

On the flip side, you get the really boring accounts, predictable ones, planned , savings etc Healthy financial profiles. When renewing their mortgage they ask for a better rate, they have done their homework and if I don't they whip their dick out and I gota take it Pulp Fiction style as they have leverage. I mean I don't have to, but to keep the relationship happy and to get other business I just do it.

[schurchill39]

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

If you're getting ripped off then I'm getting raped. I'm paying + 4%. When I went in to talk to TD they told me they increased my rate "to serve me better". This is why I am leaving TD.

Also, should I be half chub when I go in to talk to an adviser or would I have better leverage if I went in soft then went full blown erection within the time frame of a handshake?

[Xtrema]

Originally posted by sabad66
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.

6.65%, I think you a middle of the pack if RFD forums postings is to be trusted. That thread over there ranges from p+2% (5%) to p+4% (7%).

I think for unsecured, it probably helps to shop around. My unsecured is low because it was negotiated over 20 years ago when prime was like 7-8%.

[pheoxs]

Guess I'm not doing so well. Granted I got it 10 years ago when I first left for school and have never used it (Just got it to build credit long term).

Maybe I should phone in and see if I can get a new rate/limit just incase its ever needed.

[J-hop]

Originally posted by pheoxs


Guess I'm not doing so well. Granted I got it 10 years ago when I first left for school and have never used it (Just got it to build credit long term).

Maybe I should phone in and see if I can get a new rate/limit just incase its ever needed.

So how does this work exactly? I've heard the idea of getting a loan to build credit a lot but does it actually make a significant positive impact?

Just always paying phone bills and never carrying a balance on our CCs resulted in my gf and I getting approved for a mortgage amount we could never pay off in our lifetimes so I'm not sure what added benefit getting a loan would do??

I know some people have 300k+ mortgages, carry a balance on their CCs and then claim they are "building credit" by getting a loan. As tony mentioned, banks aren't stupid, they know when people are living beyond their means haha.

[pheoxs]

Originally posted by J-hop


So how does this work exactly? I've heard the idea of getting a loan to build credit a lot but does it actually make a significant positive impact?

Just always paying phone bills and never carrying a balance on our CCs resulted in my gf and I getting approved for a mortgage amount we could never pay off in our lifetimes so I'm not sure what added benefit getting a loan would do??

I know some people have 300k+ mortgages, carry a balance on their CCs and then claim they are "building credit" by getting a loan. As tony mentioned, banks aren't stupid, they know when people are living beyond their means haha.

Have you ever looked at your credit report? Your score is calculated based on a few factors that are weighted differently. Amount of credit available, how long credit accounts have been open, that payments are being made on time, and the type of credit. (Note: absolutely nowhere is the amount of interest wasted on taking out a loan to build credit)

I got a loc and a cc (both no fees) when I was 18 as they both show up on your report and thus contribute to your score (which really should only matter when you're younger unless you've fucked it up since). I keep the loc open now because my credit cards are constantly being opened and closed to swipe as many signing bonuses as possible as it covers almost all my vacations nowadays.

[Xtrema]

Originally posted by pheoxs
I keep the loc open now because my credit cards are constantly being opened and closed to swipe as many signing bonuses as possible as it covers almost all my vacations nowadays.

I don't know if a credit newb should play that game.

Apply for new credit and cancelling account that's not that old will both negatively impact credit score.

So make sure you got all your major loans approved before playing that game.

[tonytiger55]

Originally posted by pheoxs


Have you ever looked at your credit report? Your score is calculated based on a few factors that are weighted differently. Amount of credit available, how long credit accounts have been open, that payments are being made on time, and the type of credit. (Note: absolutely nowhere is the amount of interest wasted on taking out a loan to build credit)

I got a loc and a cc (both no fees) when I was 18 as they both show up on your report and thus contribute to your score (which really should only matter when you're younger unless you've fucked it up since). I keep the loc open now because my credit cards are constantly being opened and closed to swipe as many signing bonuses as possible as it covers almost all my vacations nowadays.

Good post.

Just to piggyback onto this also.
I used to get clients giving me a big stink about wanting a line of credit or mortgage. They would complain about being refused or getting a high interest rate and cite their credit score. As mentioned above the credit score is only one factor of four.
The line of ‘you can see I have money coming in’ etc just to be thrown at me all the time.

The problem is its not about ‘seeing’. I used to say the credit card is like borrowing. So if you borrow say $200 and miss a payment/ can’t pay it back on time, then why would I(the bank) loan you $350,000 for a mortgage or $30,000 for a line of credit?
You would still get a Line of credit but put that vs someone who uses the credit card and pays it off vs someone who does not. It raises a question of the entire financial profile that usually needs to be investigated.

[pheoxs]

Originally posted by Xtrema


I don't know if a credit newb should play that game.

Apply for new credit and cancelling account that's not that old will both negatively impact credit score.

So make sure you got all your major loans approved before playing that game.

Yup, definitely not advised for starting out / when you're younger. More so once you're older and don't have any foreseeable need of credit on the horizon

[pheoxs]

Originally posted by tonytiger55


Good post.

Just to piggyback onto this also.
I used to get clients giving me a big stink about wanting a line of credit or mortgage. They would complain about being refused or getting a high interest rate and cite their credit score. As mentioned above the credit score is only one factor of four.
The line of ‘you can see I have money coming in’ etc just to be thrown at me all the time.

The problem is its not about ‘seeing’. I used to say the credit card is like borrowing. So if you borrow say $200 and miss a payment/ can’t pay it back on time, then why would I(the bank) loan you $350,000 for a mortgage or $30,000 for a line of credit?
You would still get a Line of credit but put that vs someone who uses the credit card and pays it off vs someone who does not. It raises a question of the entire financial profile that usually needs to be investigated.

Yeah pretty much this. Starting out early is important because the more they see that you have available and use responsibly, the more they want to give you. Once you hit a certain point they basically are falling over themselves to offer you 5 figure credit card limits like candy.

Edit: Fuck ooops double post.

[J-hop]

Originally posted by pheoxs


Have you ever looked at your credit report? Your score is calculated based on a few factors that are weighted differently. Amount of credit available, how long credit accounts have been open, that payments are being made on time, and the type of credit. (Note: absolutely nowhere is the amount of interest wasted on taking out a loan to build credit)

I got a loc and a cc (both no fees) when I was 18 as they both show up on your report and thus contribute to your score (which really should only matter when you're younger unless you've fucked it up since). I keep the loc open now because my credit cards are constantly being opened and closed to swipe as many signing bonuses as possible as it covers almost all my vacations nowadays.

From what I've been told being on time with payments is the single largest positive contributor to credit scores.

Never under any circumstances carry a balance on your CC. Never miss a phone, utility or other bill should net you all the credit you could ever want shouldn't it? We were approved for a moronically high mortgage and the only thing our credit scores were based on were CCs, phone, utility.

i believe the bank looks negatively on LOCs (when you apply for more credit) as they are a liability not an asset.

[Xtrema]

Originally posted by J-hop


From what I've been told being on time with payments is the single largest positive contributor to credit scores.

Never under any circumstances carry a balance on your CC. Never miss a phone, utility or other bill should net you all the credit you could ever want shouldn't it? We were approved for a moronically high mortgage and the only thing our credit scores were based on were CCs, phone, utility.

i believe the bank looks negatively on LOCs (when you apply for more credit) as they are a liability not an asset.

1. Payment history. This, the most important, makes up 35 percent of your score. It is based on how well you pay off debt. Every time you miss a payment or pay late, your score will be lowered. Any major financial events in your life such as declaring bankruptcy, collection actions, past due payments and foreclosures will be kept in your payment history and drive down your score for five to seven years.

2. Total debt. This accounts for 30 percent of your total credit score. This is the total of all credit card debt, loans, mortgages and other debts you may have and the length of time it takes you to pay it all off. If you pay all your credit card debts right away, this will decrease your total debt and improve your score. The ratio between the amount of credit available compared with the amount you have used will also affect your credit score.

3. Credit history. Credit history accounts for about 15 percent of your credit score, and is determined by the length of time you have used credit services -- how long you have had credit cards, loans and mortgages. If you close an old credit card you have kept up to date for years, then start a new card, this shortens your history and can be detrimental to your credit score.

4. Recent credit is the amount a lender agrees to let you borrow, and is worth 10 percent of your total score. After you are approved for a credit card or loan, the recent credit number will be adjusted.

5. Credit types make up the last 10 percent of your credit score. Large loans such as mortgages have a greater impact on this number than a line of credit or a credit card.

Do not miss a payment, do not take out too many credits. These 2 alone is 65% of your credit score.

[J-hop]

Yea I think a lot of people forget point 2.

[Zero102]

Well I finally got around to calling PC about raising the limit on my LOC and I'm really disappointed by them.

Right now we have a $10k personal LOC at prime + 2.25%, they said to do an increase on that I would have to close it and apply for a new one, and the absolute best rate they offer right now is prime + 2.75%, and that he had no idea what kind of limit I would be approved for, it may be lower than what we currently have. So at the very best I would be seeing a 0.5% increase to try to raise my limit, and at the worst I could get a bigger increase and could have a lower limit.

Fuck that.

[dj_rice]

Bump.


When I got my mortgage, my Mortgage Advisor signed me up for RBC Homeline Plan. When I login to my banking I see my Mortgage and then I see a Royal Line Of Credit. Everyime I've made mortgage payments, this Royal Line of Credit goes up. Is this my HELOC I see everyone always talking about?

[roopi]

This quote is hidden because you are ignoring this member. Show Quote

Bump.


When I got my mortgage, my Mortgage Advisor signed me up for RBC Homeline Plan. When I login to my banking I see my Mortgage and then I see a Royal Line Of Credit. Everyime I've made mortgage payments, this Royal Line of Credit goes up. Is this my HELOC I see everyone always talking about?

Yes that would be a HELOC

[max_boost]

This quote is hidden because you are ignoring this member. Show Quote

Bump.


When I got my mortgage, my Mortgage Advisor signed me up for RBC Homeline Plan. When I login to my banking I see my Mortgage and then I see a Royal Line Of Credit. Everyime I've made mortgage payments, this Royal Line of Credit goes up. Is this my HELOC I see everyone always talking about?

Congrats you have made it to the HELOC club haha

[dj_rice]

This quote is hidden because you are ignoring this member. Show Quote

Congrats you have made it to the HELOC club haha

Thanks! I've had my HELOC right when I got my mortgage then as I've seen the HELOC from the day I purchased my house. Put down a big downpayment. Just never knew what it was.

Is it kosher to use this HELOC to purchase my new car or should I go through dealership financing

[03ozwhip]

This quote is hidden because you are ignoring this member. Show Quote

Thanks! I've had my HELOC right when I got my mortgage then as I've seen the HELOC from the day I purchased my house. Put down a big downpayment. Just never knew what it was.

Is it kosher to use this HELOC to purchase my new car or should I go through dealership financing

depends on the interest rate.