Line of Credit
Line Of Credit - LOC
What Does It Mean?
What Does Line Of Credit - LOC Mean?
An arrangement between a financial institution, usually a bank, and a customer that establishes a maximum loan balance that the bank will permit the borrower to maintain. The borrower can draw down on the line of credit at any time, as long as he or she does not exceed the maximum set in the agreement.
Investopedia Says
Investopedia explains Line Of Credit - LOC
The advantage of a line of credit over a regular loan is that interest is not usually charged on the part of the line of credit that is unused, and the borrower can draw on the line of credit at any time that he or she needs to. Depending on the agreement with the financial institution, the line of credit may be classified as a demand loan, which means that any outstanding balance will have to be paid immediately at the financial institution's request.
Personal Line of Credit
For everything from the everyday to the extraordinary
A TD Canada Trust Line of Credit gives you access to the funds you need, when you need them. It’s a great way to finance everything from everyday purchases like gas, groceries and clothing to extraordinary ones like a new car or electronics.Our Line of Credit gives you automatic access to funds whenever and wherever you want them -- up to $50,000, or even more with a Line of Credit secured by the equity in your home1 .
A Line of Credit also gives you competitive interest rates and a host of flexible financial options that put you in control.
Whether you're making everyday purchases or an extraordinary one, a TD Canada Trust Line of Credit can give you the flexibility and control you need to make it happen.
More flexibility. More control.
Instant access to your money
* Make cash withdrawals at TD Canada Trust bank branches
* Add your Line of Credit to your TD Canada Trust Access Card and use it at merchants and automated banking machines (ABMs) worldwide2
* Transfer funds to and from your Line of Credit using EasyLine telephone banking or EasyWeb Internet banking
* Write a Line of Credit cheque, free to order and no additional fee to write
Competitive interest rate options
* Competitive variable rates based on TD Prime Rates
* Transfer balances from high interest credit cards to your line of credit with a Balance of Account Transfer (BOAT)
Use the Fixed Rate Advantage Option at any time to lock in all or a portion (subject to minimums) of your credits balance at a fixed interest rate with fixed payments
Choose your monthly payments
* Choose how much you want to pay toward your outstanding credit balance each month -- as little as 3% or $50, whichever is greater, or any amount up to the entire balance, with no penalties for extra payments
* Pay interest only when your Line of Credit is secured with the equity in your home
Freedom from reapplying
* Once you open your Line of Credit, you have access to the full credit limit and you don't have to reapply
* As you pay off any credit that you have used, it becomes available again
* For example, if you have a credit limit of $10,000, you might use $2,000 to renovate a favourite room and help with expenses and have $8,000 for other purposes. As you pay off the $2,000, that credit becomes available again
Convenient ways to manage your account
* Online, by phone or at Green Machine ABMs
* Review account status and recent transactions with detailed monthly statements
* Transfer balances to and from other TD Canada Trust accounts
* Make your monthly payments in a branch, at the ABM or even online
CIBC Personal Line of Credit
If your borrowing needs vary during the year, consider a CIBC Personal Line of Credit (PLC).
A PLC is a flexible way to get extra funds for things like home renovations, vacations or even a big screen TV. You can withdraw any amount of funds up to the predetermined, approved credit limit - which is based on your personal financial situation. Once you've paid it back, you can use it again and again without re-applying.
Is it for you?
CIBC Personal Line of Credit could be for you if any of the following apply:
* You need to borrow additional funds now or in the near future.
* You want to make purchases knowing the money is there when you need it.
* You want to choose a payment due date that suits you.
* You need access to funds for purchases on an ongoing basis (for example, for home renovations or investments).
Key benefits
Saves you money
* Save with a competitive interest rate that is lower than most retail credit cards. It's variable and based on the CIBC Prime1 rate.
* Interest rates can be even lower if your PLC is secured by the equity in your home or other assets.
* Make interest payments only on the funds you use, not your total credit limit.
* Receive free personalized duplicate PLC cheques.
* Pay no service charges for setting up a PLC or writing cheques on your PLC.
Puts Money "On Reserve" for You
* Your PLC credit limit can range from $5,000 to $200,000.
* Borrow any amount up to your credit limit, at any time.
Convenient
* A one-time application means the money is available whenever you need it and you don't have to re-apply for credit every time.
* Access the money by CIBC bank machine, Telephone or Online Banking, INTERAC* Direct Payment, InterBranch banking or by writing a PLC cheque - all with no transaction fees.2
* Itemized monthly statements help you keep track of your PLC.
