Credit Experts, line of credit question?

[bernse]

Originally posted by: alkemyst
you are making too many assumptions to offer the advice you are.

Then if you want advice lay it out from the get go so people don't have to make assumptions.

You have interest rates on your accounts that would be given to people with credit ratings akin to someone coming out of bankruptcy and you're shooting down things to think about from others?

I use my money wisely,

No. It doesn't appear that you use your money all that wisely if you've been paying 19.9-24% rates on your credit cards and carrying a not insignificant balance.

however; I don't know the line of credit market for unsecured loans.

That is my question here.

That's it? Go to some of your bank websites. They should have them listed. If your getting anything in the double digits there is more to your story than your letting on.

 

[alkemyst]

hmm I got the higher rate cards without employment, not due to bad credit. I stated that though.

I think paying off close to $40k in balance since graduating 3 years ago is a little different that carrying an insignificant balance. Currently it's down to the end, I would more than love to write a $10,000 check to it today.

You keep adding to this as if I have something I am hiding. I went to banking sites and did not see unsecured loans listed. I never asked for a financial plan, just what rates unsecured lines of credit.

I didn't lay it all out on the table, because I wasn't looking for more than a rate average.

My accounts go back to about 1992 or so when I turned 21. Rates were much higher then. Today I would get 7-9%, but I don't want to open another credit card account.

However I have done research, and to answer the questions.

for unsecured loans you could get a rate close to 8%, this is a loan though, not a line of credit, there is a big difference. A loan you get all the money at once, you start paying the bank back immediately and usually you get only 3-5 years to do so.

Lines of credit are way different. You have checks you can use as you'd like. At the start you owe nothing, but you have a limit you can use. You only pay on what you use and then it's a minimum payment, you can carry a balance indefinitely. That is the major difference.

With a loan the bank knows it will get back it's money+interest in 3-5 year, with a line of credit they are taking a gamble. You can take out the limit and then just pay late and the bare minimums...to collect on you they'd have to sue. There is no assets attached to the credit line as there is with a house.

For unsecured lines of credit's I did see some with lower double digit rates...still they came with higher minimum required payments (not a big deal), but most required people to be a current customer with rather high balance history. Most I found started at 15% though with dependancy on credit (I am betting 15% would be for those at 700+, still that would be cheaper then the 21.040% rate quoted earlier)....however it was also dependant on amount borrowed...none had this listed, just apply now.

For secured lines, rates are all over and many in the low/mid single digits. This was the same about 10 years ago when I had an $80k equity line at 7%.