Interest Rates for a Line of Credit or Overdraft
An overdraft is usually the expensive form of a line of credit. Banks and credit unions can charge over 20% interest (just like a credit card) plus a monthly fee. The interest rate for a line of credit, on the other hand, is based on the Prime interest rate. The interest rate on your line of credit then “floats” with the Prime rate. For example, your bank may give you a line of credit for Prime + 2%. If the Prime rate is currently at 2.5%, that would mean that you would pay 4.5% interest (2.5% Prime rate + 2% added on by the bank). How much the bank adds on to your rate depends on a number of factors, including your credit score.
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Online Payday Loans
Instant payday loans are one of the most expensive forms of credit in Canada. Here’s why.
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