Should i accept l the LOC offer from RBC even if i don’t need it?

[orito]

I got pre-approved for a royal credit line for $15,000 at RBC prime +4.49%
25f, never had a line of credit before, not sure how it works either.
Is it better to accept the offer even if i don’t need it?

 

[jjp297]

@orito You can make this decision, accept or don't accept. It doesn't matter unless you are going to use it irresponsibly.

 

[jesusl0ver123]

@orito I would say yes. It's like a credit card that you open but never use.

BUT be careful when you want to tap into the line of credit later, the rate is always variable and might be higher than you expect.

 

[plyboult]

@orito Not a financial advisor but yes. Increases your available credit, which reduces your credit utilization. Not only that, but you're not likely to be offered it in a moment when you actually need it.

This all assumes you will be responsible with it if course.

 

[razzinhelpless]

@plyboult This.

I got one years ago. I've never had to use it. But, it's useful in a tight situation.

 

[kiranlee]

@orito It is a good security if you ever need funds in an emergency.

Interest rate sucks but that is why they offer this to you.

 

[jesuslivesjesussaves]

@orito I have a similar case with LOC that I was offered and didn’t intend to use and I decided to accept it. It will improve utilization rate and is also a tool you could use in an unforeseen scenario where you needed access to funds.

 

[godsgraceisenough2013]

@orito If you're not sure how it works the correct answer is no.