# Apply for a Line of Credit



## younginvestor (Jan 27, 2011)

Hey Guys,

I'm looking into signing up for a line of credit just incase I'm in need of cash sometime in the future. I've been trying to look around for rates to compare banks but haven't been able to locate posted rates for most of the big banks. ScotiaBank was the only one that I was able to locate at Prime +1% but the others it seems you need to apply to get the rate.

I know I have a credit rating above 700+ but I don't have any property to use to secure the line of credit.

Any suggestions as to who would be good to look at for getting the best rate?

Thanks guys!


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## the-royal-mail (Dec 11, 2009)

Prime + 1? Wow that's amazing. Best I could do at RBC was prime + about 3.35%. Longtime customer too, they raised the rates a couple of years ago and were very inflexible on it. What can you do? I always treat these as a privilege. They can disappear and change the rates anytime. Keep shopping around, probably your best bet.

P.S. Do you have any of your own cash saved for rainy day? This is preferable to racking up debt during bad times. Keep cash on hand in case you need it, as the LOC may not be available when you need it most. Don't learn that lesson the hard way. IMHO.


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## GeniusBoy27 (Jun 11, 2010)

Whoa ... you're getting prime + 1% for an unsecured line of credit? That's amazing!


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## 200above (Nov 18, 2010)

hmmm.... correct me if I'm wrong, but the way I've interp. the OP comments is that the only rates he/she can find _posted_ is from scotiabank, which is at prime + 1.

Not necessarily that he/she is getting that rate.


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## Eclectic12 (Oct 20, 2010)

200above said:


> hmmm.... correct me if I'm wrong, but the way I've interp. the OP comments is that the only rates he/she can find _posted_ is from scotiabank, which is at prime + 1.
> 
> Not necessarily that he/she is getting that rate.


Could be ... then too, the fine print might also be saying this is for a secured Line of Credit (LoC). 

PC Financial doesn't list the unsecured rate, except to say Prime plus a percentage (likely at least 5% or more), the security is showing as Prime +1% (stated as 4%).


Cheers


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## Karen (Jul 24, 2010)

Last year I found out that one of my daughters had a credit card debt in the $17,000 range and was paying a huge interest rate. Since I know she's very responsible (the debt was related to a failed business) I opened an LOC at Scotiabank and paid off her debt (she makes all the payments). The rate I was offered for a secured LOC was prime + 1%. I didn't want to be bothered having my house appraised, etc., since I knew it would be paid off quickly, so I took their unsecured offer of prime plus 2% - still a much better deal for my daughter than what she'd been paying on her credit card. From what |I've been reading here, prime + 2% is a pretty good rate.


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## tombiosis (Dec 18, 2010)

hmmmmmm...I got Prime plus 2.5% 5 years ago. Was going to try to do better, but maybe I'm ok then...(un secured)


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