by montyloree » Mon Jul 12, 2010 06:35:24 AM
The following is a conversation I had with CIBC regarding their low interest lines of credit if. The point of this conversation was that I was comparing the low interest lines of credit to low interest credit cards and seeing what the difference was.
It seemed that lines of credit are lower interest rates than credit cards by far. In this case eagle a low interest line of credit for around 3 1/2%, which was pretty good. Lines of credit give you much higher line of low limits of spending if, which means that you can have lines of credit up to $70,000 to $80,000, unsecured based on your income.
You don't get travel rewards or cash backs of lines of credit but you do get a very low interest rate so that's another difference there..
This is the interview. Enjoy.
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Monty: No. The thing is, we have no mortgage on the house.
Operator: That’s great. It’s paid off, right? That’s why I was asking you the value. So if it’s paid off then you can use it to get a line of credit, because pretty much what’s happening right now is that equity is sitting there. You’re not using it to your advantage. So getting a line of credit on that is like using your equity to your advantage.
Monty: So basically that’s Prime Plus One.
Operator: That’s the best part that you can have. I mean once you have that line of credit, you can get a good limit of $70,000/$80,000 even $100,000 or even more depending on your income. You only pay interest on what you use, so that pretty much sets you up for life. You don’t need other products after that. The key to using your Visa to earn your points, but always pay the amount.
Monty: Good. I just have one other question.
Operator: Sure.
Monty: No, I don’t carry balances. It’s usually paid. I’ve got somebody here that I got to talk to, can I call back?
Operator: No problem.
Monty: I really appreciate your time today.
Operator: No problem, thank you for calling CIBC.
Monty: Okay, thank you bye.