Lines of Credit

A line of credit (LOC) is a personal or business loan with no fixed repayment period.  Interest charges are calculated as a percentage over the Prime Rate.

We use a human approach to credit granting, rather than automated scoring models that treat everyone the same.  It means we take all your circumstances into account, and work harder to build a LOC that works for you

An IC Savings Line of Credit is ideal for members who have fluctuating credit needs and want convenient access to funds right away.  It’s perfect for those “just in case” situations that arise from time to time – like having a personal “reserve” of funds whenever you need it.

Ready Cash When You Need It
Here’s the beauty of a LOC – once the line is established, it’s available to you up to your approved credit limit without notice to the credit union and without a new application for each borrowing purpose. The undrawn portion of the line remains available to you at all times and you can access it conveniently by transferring lump sums to your chequing or current account. Then just use your debit card, a cheque, or online or telephone banking to spend the funds.

Don’t Use It? Don’t Pay
You pay interest only on the money you actually use.  Interest on the amount borrowed is payable monthly but you can decide how quickly you want to repay the principal. Typically, IC Savings requires a minimum monthly payment of 3 percent of the amount drawn as a principal reduction on a personal LOC.

Keeping the line in force year after year is easy.  It’s subject only to a satisfactory annual review of your credit standing.  And there’s no monthly fee – don’t use it; don’t pay a cent. 

You can apply for an unsecured LOC or get a better interest rate and a higher limit with a secured LOC.  For those individuals who have built up equity in their home, IC Savings has secured home equity LOCs that are suitable for larger credit needs.

An IC Savings Line of Credit could be right for you if you:

• Want to make purchases knowing the money's there when you need it
• Need access to funds for purchases on an ongoing basis (for example, for home renovations or investments).
• Want itemized monthly statements to help you keep track of your LOC transactions.