0% Line of Credit offer [EXPIRED] | Page 2 | Tangerine Bank | Discussion forum

Winnie said
I'm trying to figure out what will be that Minimum Payment each month. I think it would be zero or $25, not sure, but definitely not more than $25 x 3 = $75 for 3 months.

12. Minimum Payment:
Your Minimum Payment is the greater of:

(1) interest accrued on the total amount of Advances or other transactions (including fees) during the Statement Period plus any past due and Over-limit amounts, or

(2) $25. For New Balances less than $25, the entire New Balance is the Minimum Payment.  

Can anyone confirm if one needs to pay $25 per month once the account is set up & if so how is the $25 paid? Thanks

dommm said

Can anyone confirm if one needs to pay $25 per month once the account is set up & if so how is the $25 paid? Thanks  

The LOC terms seem to be different for different customers. FWIW mine says that I have to make a minimum payment on Sep 21 of 2% plus the interest, so that means repaying $15,000 X 2% = $300 + $0 interest = $300 after 1 month, then next month it will be $14,700 X 2% = $294 + $0, etc. etc. etc.

Said amount to be automatically withdrawn from my designated payment account, which in my case is my Tang savings.

Your deal however sounds like your repayment plan is for interest only, which in your case is going to be zero. The $25 reference would only apply if your outstanding LOC balance falls below $25

REVISED 9/3 - Your deal however sounds like your repayment plan is the greater of $25 or the amount of accrued interest. Since at 0% your accrued interest is going to be zero, only the mandatory minimum payment of $25 would apply

Winnie said

No, that is not correct.
For interest only LOC minimum payment is $25.
If your outstanding LOC balance falls below $25, the entire outstanding balance is the minimum payment.

12. Minimum Payment:
Your Minimum Payment is the greater of:

(1) interest accrued on the total amount of Advances or other transactions (including fees) during the Statement Period plus any past due and Over-limit amounts, or

(2) $25. For New Balances less than $25, the entire New Balance is the Minimum Payment.  

Upon further review, as they say in the NFL, you are correct. I have amended my previous post

I thought everybody of this forum is a great saver, why would anyone take prime+0.50% loan? Prime+0.50% is higher than any GIC and savings account interests.

butterflycharm said

What can you do with Prime+0.5% anyway? Just a regular personal loan stuff? I am assuming this can be churned in anyway since no one pays that high of interest.  

I do not need any loans or LOC with any interest rates.

But, I will take any free loans or LOC with 0% interest rate.
Free means - absolutely no fees/charges, without me applying, no supporting documents from me, except just one permission to check my credit history.

The only reason I accepted that 0% Tangerine LOC - free $300 gift from Tangerine.
That LOC will be closed in December, 2019.

My spouse called Tangerine and asked for the prime +0.5% instead of prime + 4% just to hear what they will say, in other words - just for fun.

JenE said
Winnie, will Tang charge you for discharging LOC? I know TD does.  

JenE, I think it's completely free to close Tangerine LOC.

From Tangerine Line of Credit Account Agreement:
"You can cancel and close the Line of Credit at any time. If you cancel the Line of Credit, then we’ll also cancel access to the Line of Credit."

Winnie said

Soon I will have to pay back that free loan.

I just did a quick Google search and learned, that paying an installment loan off early won't earn improve your credit score, they say.
It won't lower your score either, but keeping an installment loan open for the life of the loan is actually be a better strategy to raise your credit score.

I never actually checked my credit score before and have no idea what score I had and have, but just decided to learn a bit what actions affects my credit score and how to avoid any mistakes.  

It's not an installment loan though. By coincidence I just happened to have been issued my TransUnion report recently, and the Tangerine LOC shows up as a revolving credit trade line the same as a credit card.

If opening the LOC has done anything to your score, it might temporarily lower it by virtue of your drawing down the entire balance and thereby increasing your overall credit utilization (the percentage draw upon all your trade lines added together). Whether or not that translates into a lower score for you depends on whether temporarily adding $15K (or whatever) in outstanding revolving credit has put you over the 25-30% utilization threshold where the algorithms start to knock your score down.

So it's likely not an issue if you have oodles of unused credit limit spread around a bunch of cards already and the fully drawn Tangerine LOC barely puts a dent in your overall utilization, but it could affect some people. Having said that, even if your score temporarily drops, if it remains over 700 then it doesn't really matter anyway, because you're still going to qualify for credit and at the best available rates. Anything over and above the low 700s might impress you and your friends but it doesn't get you a better deal.

The good news is that, if opening the LOC has seen your score take a hit, when you kill it off your utilization ratio will go back down and your score will quickly recover.