Line of Credit
For example, a member may apply and be approved for a $10,000 line of credit, which remains available to them at any time. If they use $1,000, they pay interest on only the $1,000 until it is repaid. The $9,000 balance remains available in case it is needed.
The interest rate on a line of credit is much better than credit cards.
- Connected to your chequing account, you can access the money by writing a cheque, a pre-authorized debit, through Interac transactions or withdrawing funds in person.
- Replace the funds with a regular deposit.
- Interest rates much lower than credit cards
- If you don’t use it, you don’t pay interest
- Interest is calculated on the daily closing balance, charged monthly
For today’s rates, click here.