Unlike other banks, Tangerine isn’t limited to physical branches to offer financial products: rather, they’ve established themselves through the web and mobile apps, with exclusive support and much more. A Tangerine Line of Credit is a smart way to borrow money. You can quickly access funds that will help you, whenever you need them, without the need for lengthy bureaucratic processes and long waiting lines. Below, we’ll explain in detail how lines of credit work, what the eligibility criteria are, and what you need to do to find out if you qualify. Ready?
How does a line of credit work?
A line of credit is an opportunity that many banks and financial institutions offer to enable their customers to have quick access to monetary funds whenever they need them. A bank, credit union, or other financial institution may allow you to borrow money up to a predetermined limit — typically at a lower interest rate than traditional loans or credit cards. If you’re approved for a line of credit, you’re given access to these funds without a set timeframe for when you need to pay the balance back in full. Minimum payments are required as set out in the loan agreement, but as long as you meet those requirements, you can carry the balance indefinitely, at your applicable interest rate. You can borrow from your line of credit at any time — or use and reuse those funds — up to your available credit without having to reapply. You can also use the line of credit however you choose. But be aware: line of credit interest is only on what you’ve actually borrowed — not on the entire limit. For example, your bank may offer you a line of credit with a $10,000 limit, but if you’ve only borrowed $100, you’ll pay interest only on the $100 until it’s repaid.
Secured vs. unsecured line of credit: what’s the difference?
A secured line of credit involves using an asset — such as a house — as collateral, which provides the borrower a lower interest rate. The lender can take possession of this collateral if you can’t pay back your line of credit. On the other hand, an unsecured line of credit — not backed by any collateral — poses more risk to lenders, so you’ll need to pay a higher interest rate than for a secured line of credit.
How do I know if I’m eligible for the Tangerine Line of Credit?
Your financial institution will determine your credit limit and rate of interest, but you’ll only need to apply for the line of credit once. Once approved, that money is available to borrow whenever you need it — often through online banking, cheque, or even with an access card. In the case of the Tangerine Line of Credit, after opening an eligible account, you can check if you qualify and the amount available for borrowing. Then, simply select the desired amount and that’s it: in a few minutes, you can have access to the funds.
How to open an account to access my Tangerine line of credit? You can carry out the entire account opening process through the mobile app available for iOS or Android. The necessary documentation is: a valid Government Issued Photo ID, which needs to be:
- Canadian Driver’s Licence
- Provincial/Territorial Photo ID Card
- Canadian Passport
- Permanent Residence Card
- Indian Status Card
You may also be asked to upload a document as proof of your residency. It can be a bank account or loan statement dated within the last 3 months (credit card statements not accepted), a Notice of Assessment. Document must be dated within the last year, a Valid Vehicle Insurance Proof (Pink Slip), or any other documents that prove your residency. But be aware: it’s necessary to have a good credit history to get a line of credit, since the process affects your score. It’s also worth remembering that it takes 3 business days for us to confirm that your documentation matches the information you provided when you signed up.
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