TD Line of Credit Review

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When you want to borrow money, there is more than one way to get the loan. Requesting an advance charge on your credit card is one option.

With the cash advance charge and the higher annual percentage rate you pay, it is probably not the best way to borrow.

On the other hand, a personal loan may have fewer charges or extra payments and a lower annual percentage rate. In this review, we will explore the dynamics of TD Line of Credit.

Overview of TD Bank

Toronto-Dominion Bank is indisputably one of Canada’s largest and most successful banks, making our list of the five best banks in Canada for newcomers and always maintaining a spot in our numerous credit card rankings. 

TD Bank resulted from a merger between the Bank of Toronto and the Dominion Bank in 1955. As it is popularly known, TD Bank provides a range of financial products and services that compete with other big banks. 

TD has an extensive network of physical branches and online platforms and was named the best mobile banking app in Canada for the second year running by San Francisco-based App Annie.

Varieties of Personal Loan Options at TD Bank 

TD Bank features four loan types. You can select between a TD Express loan, an unsecured line of credit, an unsecured loan, and a secured loan.

TD Bank Lines of Credit

TD Bank is one of the largest brick and mortar banks providing unsecured personal loans to eligible borrowers. TD Bank provides both unsecured and secured loan options to customers with strong credit and those seeking to build credit.

TD Bank is worth considering if you are looking for fast funding and loan uses ranging from debt restructuring to the financing of significant acquisitions.

You don’t need an ongoing partnership with the bank to get a loan, but it helps. However, TD’s existing clients get discounts on rates by fulfilling certain conditions.

Businesses looking for anything more flexible than a one-time loan may tend to set up a line of credit. 

While the amount of loan you can access with a line of credit at once is always less than it would be with a term loan, you can draw on your line of credit as often (or occasionally) as you want. 

The caveat is that the total amount you have borrowed must remain below your credit cap. TD’s credit lines have varying interest rates.

Merits of TD Bank’s Line of Credit

  • Borrow between $5,000 and $50,000: A line of credit is a smart way of funding your financial needs.
  • Freedom to change the payment date: While borrowers cannot select their payment date when signing a loan agreement, they can change the date of charge as long as they send a written request.

Getting a flexible payment date is helpful to borrowers whose payday can adjust for the loan.

  • Transparency: TD has a simple and user- friendly website. Rates, terms, and fees are explicitly stated. TD also offers a detailed FAQ website to address borrowers’ questions. These features make it easier for borrowers to compare loan offerings across issuers.
  • Easy Access: Access your credit via your TD Mobile App, TD Access Card, ATM, EasyWeb Online Banking, and cheques.
  • Choose how much you’re paying back: Pay as little as the minimum payment option set out in your Line of Credit Agreement or the larger sum up to the full loan balance.
  • Consolidate debt and save interest money: Settle higher interest debt with a lower interest rate plan.
  • Easy Transfer of funds: Using the TD Mobile App, EasyWeb Online Banking, EasyLine, and in-branch.
  • Easy Re-application: Once you pay all your outstanding credit, it will be available again without the need to re-apply.

Eligibility Criteria and Process

TD Bank requires loan applicants to have a good and exceptional credit score. That is any FICO score above 680. See the qualifying requirements below, as well as our recommendation to increase your chances of getting your application approved.

Here’s a rundown on what the whole application process looks like:

  • Apply online, in person, or by telephone.
  • Receive your loan analysis via mail – usually within a few business days.
  • Schedule an examination and an internal review with the help of your loan specialist.
  • If accepted, you will receive a written promise on terms and conditions.
  • The bank verifies financial records, gathers documentation, and checks the valuation of properties.
  • Visit the bank to finalize the transaction, sign the papers and prepare for the released funds.

How’s Your Credit Score Evaluated? 

Credit scores help financial risk bearers to make fair judgments on whether or not to “take a risk” on someone. A good credit record will improve your ability to get credit in the future. 

Records containing unfavorable notes, such as late payments or non-payments, can make it very hard for you to apply or receive credit in the future.

There are three ways of determining your credit score at TD Bank:

  • They look into your previous transactions with them;
  • They review any new details you include in your application for credit;
  • They sometimes contact a third party credit agency for a report on your cumulative credit score.

Furthermore, when you have been certified and receive the credit line, it usually shows as a new account on your credit reports. If you never use your available credit or only use a small percentage of the total amount available, it will lower your credit usage rate and increase your credit score.

Timeframe for Line of Credit Approval 

If you are looking for easy access to cash, you will receive money from a TD Express loan within 48 hours of your application. The unsecured credit line, the unsecured personal loan, and the secured loan option would take longer. 

Upon completion of the applications, you should hear from a loan specialist within one business day. You will get the loan by cheque in person after signing the paperwork. The approval for an unsecured personal loan typically takes about two days. 

Usually, if sanctioned, the funds are made available to you within 7 to 10 business days.

Reasons Why TD may Decline Your Application

The credit processing methods sometimes reveal facets of your financial position that you have not been conscious of. Often, the request is declined due to a mixture of moderately poor parameters, not just a significant factor. 

Acknowledging that everyone’s financial condition is distinct, there are common explanations why applications are frequently denied:

  • Evidence of failed or overdue payments in the past.
  • Unsatisfactory verification of income.
  • Lack of productivity or consistency of cash flow
  • Insufficient income – Your net revenue should cover your existing obligations and living costs and the extra credit you are filing for.

TD Customer Service

  • You can access their customer service through the phone. You may also arrange your appointment by filling the contact form. There is also a chat feature on the web scheduled to be available from Monday to Friday, 8:30 a.m. to 5:30 p.m. ET.
  • You can also connect with TD Bank through its social media profiles on Facebook, Instagram, Twitter, LinkedIn, and YouTube.

Final Verdict

TD Bank’s unsecured personal loan could be more enticing to some borrowers than others. For instance, an existing TD Bank customer might be swayed by TD’s interest rates and discounts rather than go through the hassle of signing up with a new bank or credit union.

Overall, the TD line of credit is ideally suited to borrowers who have a good credit score and do not object to waiting for a week or more to get unsecured loans. A TD Personal Credit Line is a smart borrowing option to fund both regular transactions and larger purchases.

FAQs

What are the APRs provided by TD Bank Personal Line Credit?

TD Bank, Personal Line of Credit, provides a variable annual percentage rate product ranging from 10.5 percent APR to 15.5 percent APR.

Will TD Bank Personal Credit Line charge cash advance fees?

Yes, TD Bank Personal Credit Line can charge a fee.

Will TD Bank Personal Credit Line charge a late fee?

Yes, TD Bank Personal Credit Line will charge a late payment fee to the borrower.

What are the borrowing limits on TD Bank Personal Credit Line?

Upon approval and based on your credit scores, a credit limit of at least $20,000 and up to $50,000 will be assigned to your TD Bank Personal Line of Credit Personal Line.

What’s the difference between a line of credit and a loan?

Loan funds are usually issued to the creditor as a lump sum. When the creditor needs to borrow money again, they have to apply for a new loan. Many who have a line of credit will draw up funds, repay, and draw up funds repeatedly to the line’s full credit amount.

Is a credit card a line of credit?

Both credit lines and credit cards are categories of revolving credit, but they are separate items. Unlike credit cards, the LOC’s credit is subject to a variable interest rate, and there is no grace time until interest starts to accumulate on the funds collected. 

In comparison, LOCs usually do not generate cash-back or loyalty points as certain credit cards do.

Should I apply for a loan or a line of credit?

In general, loans are best tailored to big, one-time transactions or acquisitions. That may be buying a new home or car or financing for a college education. On the other hand, credit lines are best tailored to current, minor, or unexpected costs, or even profits and cash flow.

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Jude Uchella

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Avid researcher, freelance writer, and personal finance enthusiast passionate about financial education and literacy.

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Kareena Maya

Personal Finance and Travel Rewards Expert Contributor

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.