Pros and cons of personal line of credit FINAL Edition

Central Guaranty Trust has opened 2,000 PLCs since it introduced them five months ago. Mariani predicts that more than 15,000 customers will have them by the end of the year. The Toronto Dominion Bank will officially introduce a standard PLC next spring. A secured PLC is structured much like a home-...

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Bibliographic Details
Published inThe Gazette (Montreal)
Main Author Weber, Adele
Format Newspaper Article
LanguageEnglish
Published Montreal, Que Postmedia Network Inc 13.11.1989
Subjects
TORONTO
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Summary:Central Guaranty Trust has opened 2,000 PLCs since it introduced them five months ago. Mariani predicts that more than 15,000 customers will have them by the end of the year. The Toronto Dominion Bank will officially introduce a standard PLC next spring. A secured PLC is structured much like a home-equity line of credit in that the outstanding balance is backed by assets, such as Canada Savings Bonds. For borrowers who don't own homes - or who don't want to use their home equity as collateral - the PLC is a viable alternative. Those with excellent credit histories and incomes over $40,000 should be able to obtain unsecured PLCs, even if they own few or no tangible assets. With no collateral to safeguard the outstanding balance, the bank or trust company will charge a higher rate of interest, but generous lines of credit are possible even on unsecured PLCs.
ISSN:0384-1294