Posted on: 15-06-09 15:11:50
Quote:
Originally posted by GoToAIMS
Thanks Vik,
Can you please advise from where or how can I get the rate of P+1%? I will really appreciate your help and advice.
All these banks are pretty competitive, so I dont find much value in suggesting you to go to scotia or TD... I assume there might have been some reasons why RBC is not ready to lend below P+4.25% .... I would say ask RBC why can't you get what others are getting.... if you dont get any satisfactory reply, go to other banks ......
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Vik
Quote:
Originally posted by GoToAIMS
2. I am really thankful to two advices - both contrary- one said keep LOC at ZERO and other said get rid of TD LOC. So ball is again in my court
In general, credit score depends on the ratio of used credit vis-a-vis total available credit.
Among other factors, of course.
Which is why closing unused credit accounts can hurt your score, esp. if they are older accounts which prove the longest duration for which you have had available credit.
It is recommended that this ratio be as low as possible, and ideally less than 10%.
On the other hand, to keep things simple, you may decide to close it anyway.
Since, as you found out by personal experience, a difference of < 100 points did not prevent you from getting credit.
The main factor there may have been the duration of your credit report i.e. 1 year vs 3 years.
Quote:I think the keyword is unsecured.
3. Thanks Vikshr, actually I just went to RBC and they offered me P+4.25% on unsecured LOC so I thought it is good enough compared to my previous unsecured LOC from TD at a rate of P+5.75%. Honestly, I am not sure it is good or bad rate as I have not gone to any other bank except RBC & TD.
The P or P+1% rate that others are referring to are common for HELOC (i.e. secured by the equity in your home).
For unsecured loan, your rate doesn't appear to be outrageously high.
These rates depend heavily on your credit, your negotiation with the bank and any inside connections/relationship with the folks at the bank.
Don't hesitate to negotiate, shop around, and walk away if you get better offers.
BTW, speaking of credit scores, keep in mind that all this "shopping around" and all this loan switching will hurt your credit score in the near term.
It may be better to work through a broker and have only one hit on your credit file rather than a dozen hits.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by pratickm
The P or P+1% rate that others are referring to are common for HELOC (i.e. secured by the equity in your home).
For unsecured loan, your rate doesn't appear to be outrageously high.
Hi Pratick, when I said P+1%, I was referring to "Unsecured" LOC only, not HELOC..... I didnt find anyone with good credit, having any trouble getting Unsecured LOC at P+1.... sure "good credit" is the key....
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Vik
Quote:Are you sure?
Originally posted by vikshr
Hi Pratick, when I said P+1%, I was referring to "Unsecured" LOC only, not HELOC..... I didnt find anyone with good credit, having any trouble getting Unsecured LOC at P+1.... sure "good credit" is the key....
Can you tell me which bank is currently giving unsecured LOC @ P+1%?
I am looking at bankrate and a couple of other sites and they are all quoting in the range 5% - 6%.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by pratickm
Quote:Are you sure?
Originally posted by vikshr
Hi Pratick, when I said P+1%, I was referring to "Unsecured" LOC only, not HELOC..... I didnt find anyone with good credit, having any trouble getting Unsecured LOC at P+1.... sure "good credit" is the key....
Can you tell me which bank is currently giving unsecured LOC @ P+1%?
I am looking at bankrate and a couple of other sites and they are all quoting in the range 5% - 6%.
Hi Pratick... my apologies.. I forgot for a moment that things have changed lately.... I just checked with Scotia bank ... Unsecured LOC rate for best customer is P+2% .... still better than 5%-6%
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Vik
Quote:
I just checked with Scotia bank ... Unsecured LOC rate for best customer is P+2% .... still better than 5%-6%
Now I am surprised. I just received a letter from Scotia back that my secured line of credit will be prime + 1 % effective Aug 09. My credit history is excellent. Not much difference between secured and unsecured LOC from same institution.
Anyone else received similar notification?
Quote:How many people do they actually qualify for that rate?
Originally posted by vikshr
Hi Pratick... my apologies.. I forgot for a moment that things have changed lately.... I just checked with Scotia bank ... Unsecured LOC rate for best customer is P+2% .... still better than 5%-6%
Maybe it is just a teaser rate.
Bankrate tracks average unsecured LOC rates and they are reporting 5% - 6.99% since March.
On redflagdeals as well I'm mostly hearing of rates 5% and above.
HELOC are usually P+1% but some folks have managed P+0.75 recently as well.
A mortgage broker will be best able to advise in such a situation.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
