In this section
- Personal Banking
- Accounts
- Regular Chequing
- U.S. Account
- Performance Plan
- Performance Plus Plan
- Daily Interest Savings
- Regular Savings
- Fat Cat Savings
- Moving Up
- Campus Account
- Gold Account
- Current Account
- Investment Savings
- e @ccess Account
- TFSA - Tax Free Savings Account
- Mortgages
- Loans
- Line of Credit
- Service Charges
- Bill Payments
- MasterCard
- Direct Deposit
- Automated Transfers & Bill Payments
- Safety Deposit Boxes
- Cash Alternatives
- Rates & U.S. Exchange
Line of Credit
Having a Line of Credit allows you to be in a financial position to access money when you need it - for emergencies, home appliances, car repairs etc. How you use the funds is up to you. A line of credit allows you to overdraw your chequing account within a pre-established limit. The line of credit is accessible for Direct Payment purchases and ATM cash withdrawals.
Interest rates on a line of credit are lower than with credit cards, it makes sense to use a Line of Credit as a revolving source of cash. Interest is charged on the amount borrowed and only for the number of days it is used. If you don't use it you don't pay interest.
Features include:
- overdraft protection up to a pre-authorized limit
- instant access to funds for purchases or bill payment
- interest much lower than a credtit card calculated only on the negative balance in your chequing account on a daily basis, charged monthly
- If your line of credit is not used, interest is not charged
- no yearly fee
FAQs about a Line of Credit
1. How does it work?
Members who have a chequing account and are 18 years of age or over,
may apply for a line of credit through our lending department. The interest
charged is based only on the amount and the number of days used. So,
it’s affordable because if you don’t use it, there is no charge. It’s
also flexible because the monthly repayment minimum is interest only.
2. How is interest calculated?
Interest charges are based on a floating rate relative to Prime plus
and are charged on the negative closing daily balance, compounded monthly.
3. Is this better than having an outstanding credit
card balance?
Yes, because the interest charges are much lower. For example, the interest
rate on the Credit Union MasterCard is 17.90% as compared to an average
Carpathia Line of Credit interest rate of 9%. What this means on a $1,000
is:
- Credit Union MasterCard cost: - $179 a year or $15 a month
- Carpathia Line of Credit: - $ 90 a year or $7.50 a month
4. How can I apply for a Carpathia Line of Credit?
Call your Carpathia branch to
meet with one of our Financial Services Representatives or e-mail us. Remember not to include any confidential information in your emails.
