Hello All CDs,
I am comparatively a new member at this forum, and almost a novice in financial matters. Today I went for a banking spree I previously had a Line of Credit (LOC) with TD bank for $20K at 8% interest rate; and now today I have been approved for LOC with RBC for 30K at 6.25%. Prime is 2.25%. Please advise that after drawing money from RBC to clear TD LOC balance, shall I cancel the TD LOC or shall I keep the TD LOC open (for in case ---). Is it bad or good to have two LOCs at same time with two banks?

I also have only one credit card --a zero balance TD Visa (at 9.4% interest rate), and today Canadian Tire convinced me to apply for a Canadian Tire Cash back Master Card. Please advise that if I am approved for Canadian Tire (result will come after 03 weeks) then shall I cancel the TD Visa? So that I shall not end up having two credit cards. Kindly advise that is it bad or good to have more than credit cards, if one intends to pay off balances on due date?

Regards,

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Originally posted by GoToAIMS

Hello All CDs,
I am comparatively a new member at this forum, and almost a novice in financial matters. ,

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Please advise that after drawing money from RBC to clear TD LOC balance, shall I cancel the TD LOC or shall I keep the TD LOC open (for in case ---). Is it bad or good to have two LOCs at same time with two banks? ,

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I also have only one credit card --a zero balance TD Visa (at 9.4% interest rate), and today Canadian Tire convinced me to apply for a Canadian Tire Cash back Master Card. Please advise that if I am approved for Canadian Tire (result will come after 03 weeks) then shall I cancel the TD Visa? So that I shall not end up having two credit cards. Kindly advise that is it bad or good to have more than credit cards, if one intends to pay off balances on due date?

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I am a Gents and not a Ladies.

It is always good to have 1 credit line and 2 credit cards but it is better to have it from a financial institutions than the new store cards..... Keep the TD Visa as you are getting a very low interest rate on it and check with Scotia if you want cash back credit cards.

When it comes to our credit lines do some background work to see if you will require 50K or 30K will do. If yes then get rid of your TD LOC... Good for your credit score... The lesser the credit you have the better the credit score....

Happy banking just dont get dinged by the banks here....

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Originally posted by GoToAIMS


I previously had a Line of Credit (LOC) with TD bank for $20K at 8% interest rate; and now today I have been approved for LOC with RBC for 30K at 6.25%. Prime is 2.25%.

Regards,

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Vik

Thanks All,

1. Regarding comment of Tamilkuravan: "I was assuming that your last ID in CD was 'PakEngineer" or " PakisthaniEnineer' and that you were here for a long time in the KW area."

Answer: Yes, I am in KW since 2007 (overall in Canada since a bit over 4 yrs). The previous ID was so long and a friend commented that IDs shall not identify your ethnicity/nationality and profession, so I have changed it a simpler one, but a related one. Hope it is alllowed Secondly, I am really novice in financial field, otherwise would have not asked questions.

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

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.

Now, some personal thoughts. I may be wrong but in light of my personal experience the "Credit Score" does not mean much. For example, in 2005 I paid on-line to know my credit score, which was >730 as I only had one credit card with max limit of $500 and always having balance of less than $200, so I confidently went to bank for seeking loan/LOC of $10K to buy my first car in Canada; and I was plainly refused because of "Not Good Income". Later, in 2007 I paid on-line to know my credit score, which was then <650, so was not sure/underconfident if I can get mortgage but when I went to the RBC bank they gave me flash approval for $0.5M after confirming my job status.
However, that may be only "my case"; and credit score may be very important in case of others, because I am not a financial field expert.

Regards,

Quote:

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Originally posted by GoToAIMS


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.

Now, some personal thoughts. I may be wrong but in light of my personal experience the "Credit Score" does not mean much. For example, in 2005 I paid on-line to know my credit score, which was >730 as I only had one credit card with max limit of $500 and always having balance of less than $200, so I confidently went to bank for seeking loan/LOC of $10K to buy my first car in Canada; and I was plainly refused because of "Not Good Income". Later, in 2007 I paid on-line to know my credit score, which was then <650, so was not sure/underconfident if I can get mortgage but when I went to the RBC bank they gave me flash approval for $0.5M after confirming my job status.
However, that may be only "my case"; and credit score may be very important in case of others, because I am not a financial field expert.

Regards,

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Vik

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.