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0% Line of Credit offer
September 2, 2019
5:55 am
dommm
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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

September 2, 2019
6:59 am
hwyc
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Facts checked
(1) Tangerine issued monthly statement (like that of credit card's).
(2) Tangerine also scheduled a withdraw from my Payment Account on file.

[Tangerine also said under "You Promise to Pay" section] We may at any time, without prior notice to you and for any reason, demand immediate payment of any amounts outstanding (including the Debt) under this Agreement.

September 2, 2019
10:36 am
Londonguy
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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Said amount to be automatically withdrawn from my designated payment account, which in my case is my Tang savings.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

September 3, 2019
8:15 am
Winnie
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Londonguy said

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  

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.

September 3, 2019
9:03 am
Londonguy
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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

September 4, 2019
6:24 am
dommm
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Thanks Londonguy & Winnie for your replies.

September 28, 2019
10:26 am
smikec
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September 24, 2019
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Long time lurker, first time poster (great forum)

There is certainly a variety of offers people have received here. Has anyone that didn't get the best rate been successful in calling in and asking for the prime +0.50%?

Thanks

s

September 29, 2019
2:04 pm
Winnie
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smikec said
... Has anyone that didn't get the best rate been successful in calling in and asking for the prime +0.50%?
 

My spouse received $15,000 LOC with 7.95% (Prime + 4%) , called Tangerine and asked for the prime +0.50%.
Tangerine refused, no success.

September 29, 2019
6:34 pm
davidgeorge
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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.

October 13, 2019
1:56 pm
butterflycharm
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Where do you receive these promos? I didn't receive anything in my inbox on Tangerine portal. But then again my account has $0.00 and has been silent for quiet a while.

October 16, 2019
7:55 pm
smikec
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winnie - thanks for the reply

david - it's the zero % first 3 mo that's got people interested, and moving elsewhere for no-cost interest gain

butterfly - I received mine in the website insights tab, and email; sometimes I get promotions by snail mail too, but I don't think it happened for this particular promotion

October 21, 2019
7:02 am
butterflycharm
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Winnie said

smikec said
... Has anyone that didn't get the best rate been successful in calling in and asking for the prime +0.50%?
 

My spouse received $15,000 LOC with 7.95% (Prime + 4%) , called Tangerine and asked for the prime +0.50%.
Tangerine refused, no success.  

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.

October 21, 2019
8:15 am
Winnie
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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.

October 21, 2019
9:13 am
JenE
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Winnie, will Tang charge you for discharging LOC? I know TD does.

October 21, 2019
10:06 am
Winnie
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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."

November 4, 2019
6:51 am
hwyc
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... my interest free days will soon be over. So I initiated funds to be transfered back to the Tangerine realm.

Nov01 (Fri) Initiated pull on Tangerine from external FI
Nov04 (Mon) Completed on Tangerine side with balance partially on hold until Tue Nov12

On-hold period is a new hurdle not to be neglected. My two cents.

November 6, 2019
7:59 pm
Bud
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Is 45k the max take seen in one of these CL deals

November 12, 2019
7:34 am
Winnie
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Loonie said
... And a gold star for your credit rating when you pay it back!  

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.

November 12, 2019
9:09 am
Londonguy
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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.

November 12, 2019
9:38 am
Winnie
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Thank you Londonguy, very good explanation.

I just learned, that it's better to keep open that Tangerine LOC and not to close it in December, as I wanted to do.
That will help me to keep my utilization ratio below 25% in future.

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