Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [line-of-credit]

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Is there an advantage to keeping a liquid emergency fund if one also has an untapped line of credit?

I've seen several financial advice websites and books that recommend keeping some amount of money (usually a function of your monthly expenses) in cash as an emergency fund. See for example questions here, here, and here My question centers around…
John Doucette
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What's better: An unsecured line of credit, or a secured line of credit like a HELOC?

I've heard that I can get a lower interest rate with a secured line of credit. If I qualify for a secured line of credit, why would I still want to use an unsecured line of credit?
bms1
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For a major expensive home renovation (e.g. addition, finished basement, or new kitchen) should one pay cash or finance with a loan? Would such a loan be "good" debt?

This other question is similar, but was referring to a specific renovation/repair (new flooring) that, while expensive ($1500), isn't very expensive – it's feasible to consider saving up for over a short period of time. So, I'm curious: Imagine one…
Chris W. Rea
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Home Renovations are expensive.. Should I only pay cash for them?

Should I save up enough cash to do home renovations, or can I take out a loan? Our house needs a new kitchen floor as the linoleum is actually ripped in some areas, and the wood is exposed... This is going to cost $1500 to fix.. it's going to take…
montyloree
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Cash out retirement account or sell and downsize the house to pay off line of credit?

I am in my mid 40's and I have an outstanding secured line of credit with a large balance that I want to clear. I can only come up with 2 scenarios to clear this amount based on my home equity and retirement savings. Keep the house, but cash in all…
JRM
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Can a Line of Credit be re-financed? Is it like a mortgage, with a term?

I have a home equity line of credit, for which I have had trouble making large payments against since my career change. I'm wondering if I should be concerned over the interest charges, and if there is anything I can do to improve it?
Nat_Rea
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Does a declined request to increase my credit limit hurt my credit score?

If I’m eligible for a line of credit increase request on my credit card, request one, but am declined one, does it hurt my credit score? If it can hurt my credit score, is it situational or does it happen in pretty much every instance? EDIT:…
AverageWorker
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Use retirement to pay off debt: Should I cash in RRSP to repay Line of Credit?

The amount I have in RRSP savings is exactly equal to the amount I have in Home Equity Line of Credit debt (significant, but aside from home mortgage, my family has no other debt). I know if I cashed out the RRSPs, I would be taxed, but since I've…
Nat_Rea
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I've spent a lot in my line of credit, when should I refinance and transfer the debt to my mortgage?

There is enough equity in my mortgage to cover my line of credit - when is it a good idea to pay off my credit by increasing my mortgage?
blueberryfields
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When should I open a "Line of credit" at my bank?

I'm new to the concept of "line-of-credit", and my banker says I should be able to open one based on the number of stocks I own. I have no mortgage. I'm told that I'm able to deduct my interest on my tax returns. When is it wise or unwise to open…
makerofthings7
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Personal Line of Credit and Credit Utilization rate

Let's say I have a Personal Line of Credit for 20,000. If I use 80% of it, will it have the same effect (on Credit Scores) as that of a Credit Card with 80% utilization?
user6123723
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Should I get a personal loan or a line of credit?

Looking to buy a new computer. While I can afford to buy it outright, I'm looking to get a loan to help make my credit a touch better. But I'm wondering if I should just go with a line of credit, that way I have something for emergencies once the…
psion
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Using a line of credit for long-term investing

I have recently opened an unsecured line of credit for $20k at 1%. I have a savings account at the same institution making 1.5% - both compounded daily and paid monthly. I've read a few questions on here relating to paying off debt with itself, and…
Scott
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What kind of information can I use when trying to convince my bank to lower the interest rate on my line of credit?

I'm looking to lower the interest rate on my line of credit, and, before calling up my bank, I am wondering what kind of information I should have prepared that I can use as arguments when trying to convince them to do this?
blueberryfields
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Can I draw funds from a personal line of credit to pay its own monthly "minimum payment"?

I can guess the answer to this question, but I can't figure out why. So here goes... I've got an unsecured line of credit with a limit $30,000. The annual interest rate is 6%, compounded daily. Every month, I am required to pay 3% of the balance as…
Gili
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