20000 Line of Credit at 7.70%

[designsbyfaith]

@christian_follower That’s their HELOC rate.

 

[nmi]

@christian_follower I have 30k LOC with TD with a fixed rate of 5.5% for comparison.

 

[kleodug]

@christian_follower Scotia sent me the same offer (10k though) under the guise of funding an RRSP

 

[analog5]

@christian_follower There might be circumstances where it'll be useful. If you somehow made more this year and don't have any cash to make an rsp contribution to get taxable income down, this might be one way. On the other hand, if you can't contribute, it'll just be added to next year's contribution room so maybe you can do it next year. The tricky part is how sure you are that your various gains can beat the interest rate and how long it'll take to pay back.

If there are no fees, no catch, why not just take it and not use it? There isn't much downside to just taking it and letting it sit unused.

 

[lovelylady35]

@christian_follower Damn! That’s somehow lower than my car loan(only by 0.04%). To be fair, rates are fucked right now but that’s insane for a LOC

 

[gmck22]

@christian_follower Is it a HELOC or a LOC? That rate is good. I haven’t seen anything that low at on a LOC in 10 plus years. If you don’t need it I wouldn’t get it. Like if you were getting a cheap used car or going to school now that would be good. Rather than that it’s pretty useless at this point.

 

[stevejr]

@gmck22 It's not that impressive... That's prime + 0.5.

OP should get it. Always good

 

[resjudicata]

@stevejr Uh it sure is fucking good these days

I have an 830 credit score and a 11.3% loan

 

[stevejr]

@resjudicata It's not just a question of credit score, it never is, but you should probably shop around. My biggest unsecured LOC and HELOC are at prime (currently 7.2), and I know people with open financing at Prime minus something. I also have one at prime +0.5 but it was an online offer just like OP from Tangerine.

 

[gmck22]

@stevejr It seems like a waste to get it when you’d be paying interest. Interest is a waste of money and could be used for other things.

 

[stevejr]

@gmck22 Interest is a cost. But the cost can very well be worth it. It's a big mistake to refuse to use debt and financing

 

[sancurry93]

@christian_follower Accept it. Thats an awesome rate.

 

[bryanmartin54]

@christian_follower First of all do you need a line of credit?