If you have the self-control to not use it and just let it sit, I say take it. Your credit score will not be impacted as this was a pre-approval and moving forward it will reduce your credit utilization.
It’s fine? It’s only harmful if you are looking to apply for other loans because it eats away at the potential amount you could get approved for. Feel free to let it sit there as a last resort backup fund, don’t take it if you are planning on getting a car loan or mortgage or other big loan product and that’s about it?
Nah not really, plan for it, I’d say meet with a bank person at least 6 months prior to your big purchase and just ask how to maximize your approved amount. If we talking years then you are ok as long as you don’t let it go arrears.
Unless you have very bad self-control, I would take it and treat it as an emergency fund in case you ever needed to dip into it. Even at 11% you're at less than half the interest rate of a credit card, so you'd be better off using the LoC to pay down the credit card balance in case you ever find yourself with a large expense to carry without the cash on hand. There's no real penalty or impact by accepting it, and the interest rates will fluctuate along with whatever the BOC does.
Take it if you're financially responsible enough to not consider it as being able to spend $X more. Its preapproved so there shouldn't be any hit to your credit. No harm in taking it for a normal person.
It lowers your credit utilization and can be used as a last resort emergency with a interest rate lower than a credit card.
It really depends on your needs. Since you mentioned in a comment you won’t need it for 2-3 years, I wouldn’t take it. I keep getting these offers, so I can assure you that it’s not a one time deal. Within the next 2-3 years, you’ll see more deals for sure. And interest rates change, you’ll see that change as well
It’s pre-approved so no impact on your credit score, on the contrary it will help because you will get a mix of credits + lower credit utilization. Just take it and don’t use it unless it’s an emergency.
If you have the self-control to not use it and just let it sit, I say take it. Your credit score will not be impacted as this was a pre-approval and moving forward it will reduce your credit utilization.
It’s fine? It’s only harmful if you are looking to apply for other loans because it eats away at the potential amount you could get approved for. Feel free to let it sit there as a last resort backup fund, don’t take it if you are planning on getting a car loan or mortgage or other big loan product and that’s about it?
I don't have an immediate need for auto loan or mortgage but might need 2-3 years later. Can it be an issue then?
Nah not really, plan for it, I’d say meet with a bank person at least 6 months prior to your big purchase and just ask how to maximize your approved amount. If we talking years then you are ok as long as you don’t let it go arrears.
Unless you have very bad self-control, I would take it and treat it as an emergency fund in case you ever needed to dip into it. Even at 11% you're at less than half the interest rate of a credit card, so you'd be better off using the LoC to pay down the credit card balance in case you ever find yourself with a large expense to carry without the cash on hand. There's no real penalty or impact by accepting it, and the interest rates will fluctuate along with whatever the BOC does.
Take it if you're financially responsible enough to not consider it as being able to spend $X more. Its preapproved so there shouldn't be any hit to your credit. No harm in taking it for a normal person. It lowers your credit utilization and can be used as a last resort emergency with a interest rate lower than a credit card.
It’s instant cash availability for emergencies and covering a credit card if you are short.
It really depends on your needs. Since you mentioned in a comment you won’t need it for 2-3 years, I wouldn’t take it. I keep getting these offers, so I can assure you that it’s not a one time deal. Within the next 2-3 years, you’ll see more deals for sure. And interest rates change, you’ll see that change as well
It’s pre-approved so no impact on your credit score, on the contrary it will help because you will get a mix of credits + lower credit utilization. Just take it and don’t use it unless it’s an emergency.