11/30/2012

Lines of Credit

We have been offered a $10,000 line of credit with the Bank of Montreal because of our good history with our auto loan and credit card that we have with them.  They are offering us a really reasonable rate (less than 4%), no credit check and it would be unsecured.

We're very interested because of the work were planning to do on the back yard this year, we were planning on having to use the credit card a bit as we saved up money (we won't have the $10,000 for the yard technically until December, 2013 so were planning on using the CC and then paying it off as we saved the $$).

A line of credit with such a low interest rate would seriously help with the interest for next year's back yard project.

....what are your thoughts?

Related Posts:

  • December Spending SummaryIt's time to share our Monthly Spending Summary again.  The month over month image is a bit small, but if you click on it you can view it in detail.  I've highlighted in green December, which is the month we're curr… Read More
  • Engagement Photo'sOut of the 91 engagement photo's that were taken, we had to choose our favorite 10!  I was able to get it down to 30 fairly easily but I didn't think I could get it down any further.  I got in touch with our photogr… Read More
  • New Page - Book ListCheck it out!  I've started a new page.  One of my goals for 2011 is to keep track of all of the great (and even not so great) books that I read every year.  I'll include a few coments and links to the author's… Read More
  • Favorite PF BlogsI recently went through my blog list and found that quite a few that I used to follow have dropped off or decided to 'take a break' from blogging.  My favorite blogs are typically those that are personal finance blogs - … Read More
  • 2010 Utilities in ReviewBelow is a graph of our utility expenses for the 2010 year.  I thought it might be interesting to share this and to see if anyone else does a similar blog post.  Our average monthly bill decreased from $267.45 (2009… Read More

4 comments:

  1. Hmmm. Sure sounds more sensible than using a CC. Is the rate floating? I would find out how the payments work. Often, they are interest only, and people somehow never pay them off. If you treated it as an actual loan and set up payments when you were done with the work, so it didn't drag out, it could work. Especially if you didn't use it to increase your budget beyond what you plan.

    ReplyDelete
  2. Is there a rush for the project? I would suggest saving as much as you can, & using the line of credit for an unexpected emergency (furnace breaking, needing to repair your roof, etc), in the event (hopefully it won't happen) you need it.

    ReplyDelete
  3. When I went into my BMO branch this week to get my jar $, out of the blue the first thing the teller said was "I see you don't have a LOC with us. Are you interested in one?" I had to tell her I already had one with another bank.

    4% is a good rate.

    ReplyDelete
  4. I double checked, the rate is prime + 2.49 % so right now it's 5.49 - but still betwe then the cc and we don't pay unless we actually use it.

    Minimum payments are 50 or 2% of monthly balance whichever is greater.

    I think we would make payments like our cc - whenever there is a balance we pay it off a fast as possible.

    ~Jessie

    ReplyDelete

Hi! Thank you for stopping by and leaving a message.

Links ♥

Followers