Comments on: Line of Credit: prime rate, base rate, variable rate

By: Ryan A. Smith

Ryan A. Smith — Wed, 26 Aug 2009 00:09:12 +0000

I think I’ll try different banks next year. I’m afraid my credit score will suffer if I apply to many banks. I don’t need LOC really at this moment, but I just wanted to try it out and see what rate I would get, which turned out to be a disaster wth BMO.

Do smaller banks and credit unions offer better rates than those five major banks (RBC, BMO, CIBC, Scotia, TD)?

By: Julian

Julian — Tue, 25 Aug 2009 19:23:00 +0000

Hi there Ryan,

Stay away from BMO!

I got an unsecured line of credit for 11K from a different bank at prime + 2. Not sure what BMO’s variable rate is – generally you pay a ‘prime’ bank rate, now at 2.25 plus an adjusted increment based largely on your credit score.

If your credit is good and you have secured the loan, you shouldn’t pay much more than 2 points above prime. Check out the competition, I suggest.