HELOC stands for home equity line of credit, also known as a home equity line. It is a line of credit you can access using the equity in your home. HELOCs work like a credit card, letting you borrow up to a specific limit when you want and repay the funds slowly over time. A home equity loan based on the equity of the borrower's home. Unlike a HELOC, you receive all of the money upfront and then make equal monthly payments of principal and interest for the life of the loan (similar to a mortgage). It is a loan based on the equity of the borrower’s home. Similar to how a credit card works, it allows you to take out money and pay it back down at your own pace up to a certain amount during the draw period. A variety of banks and lenders offer HELOC and home equity loans. Our storefront can help you target the best opportunities and rates in your area. It’s always a good idea to shop around with a few lenders to compare rates, fees and loan terms. A HELOC can be a good idea for a number of reasons. Maybe you need to fund a home improvement project or you might want to finance your education. It is also flexible, especially if you don’t need all the money upfront. A HELOC is not a good idea, however, if you aren’t in a position to repay it comfortably or if you use the money for disposable items that don’t enhance your financial position. The draw period expiration of a HELOC refers to a time when you can no longer draw any remaining loan amounts. This draw period expiration will vary based on the lender and the payment period you have signed on for. At the end of the draw period the facility converts to a fixed repayment schedule, like a mortgage, where you make equal monthly payments. Yes, so long as the HELOC is used for home-related investments (home improvements). Interest is capped at $750,000 on home loans (combined mortgage and HELOC/HE loan). So if you had a $600,000 mortgage and $300,000 HELOC for home improvements on a house worth $1,200,000, you can only deduct the interest on the first $750,000 of the $900,000 you borrowed. Why you can trust Bankrate At Bankrate, our mission is to empower you to make smarter financial decisions. We’ve been comparing and surveying financial institutions for more than 40 years to help you find the right products for your situation. Our award-winning editorial team follows strict guidelines to ensure the content is not influenced by advertisers. Additionally, our content is thoroughly reported and vigorously edited to ensure accuracy. When shopping for a HELOC, look for a competitive interest rate, repayment terms that meet your needs and minimal fees. Loan details presented here are current as of the publish date. Check the lenders’ websites for more current information. The top lenders listed below are selected based on factors such as APY, loan amounts, fees, credit requirements and broad availability. The best HELOC lenders offer lines of credit with competitive interest rates, low fees and an easy online application process. Current HELOC rates range between 2.87% and 21%, depending on the borrower’s creditworthiness and other factors. A HELOC is a variable-rate home equity loan that works something like a credit card. With a home equity loan, you get a lump sum all at once. With a HELOC, you’re given a line of credit that’s available for a set time frame, usually up to 10 years. This is called the draw period — during this time, you can withdraw money as you need it. You can typically choose between a HELOC with an interest-only draw period and one that allows you to pay both interest and principal, helping you pay the line of credit off faster. When the line of credit’s draw period expires, you enter the repayment period, which can last up to 20 years. You’ll pay back the outstanding balance that you borrowed, as well as any interest owed. HELOC rates are variable and are tied to a benchmark interest rate. As the prime rate moves up or down, so does your HELOC rate. Payments vary depending on the interest rate and how much money you have used. However, some lenders will allow you to convert an adjustable rate into a fixed rate. HELOCs are often used for home improvement projects like kitchen remodels or additions, though some homeowners use a HELOC for debt consolidation or paying off high-interest credit card bills. Tapping the equity in your house to pay off debt does come with the risk of potentially losing your home if you find yourself unable to make the payments. Some of the most popular ways homeowners use HELOC funds include: HELOCs offer a combination of relatively low interest rates and a lot of flexibility. If you need money over a staggered period — for example, at the beginning of each semester for the next four years to pay for a child’s college tuition or for a remodeling project that will take three years to finish — a line of credit is ideal. It gives you the flexibility to borrow only the amount you need, when you need it. And if you borrow relatively small amounts and pay back the principal quickly, a line of credit can cost less than a home equity loan. However, there are always risks when you take out a loan, especially one that is secured by your home. Here are some of the key considerations of getting a HELOC. To get a HELOC, you must have a substantial amount of equity in your home. Equity is the market value of your home minus the amounts you owe on your mortgage or mortgages. Lenders calculate the size of a HELOC they’ll approve based on your loan-to-value ratio, along with other factors, like credit history. Use the Bankrate HELOC calculator to estimate the amount of money you might qualify to borrow. With most HELOC lenders, you can generally get the application process started in just a few minutes online. You’ll simply enter some personal and financial information such as your name, address, salary, desired amount and estimated credit score. To apply for a HELOC, start with these steps: If you’ve built home equity and need to fund an upcoming expense, a home equity line of credit can be a good way to access money using your home as collateral. Homeowners can use these funds for a range of expenses, including home improvement projects and debt consolidation. The best HELOC lenders offer lines of credit with competitive interest rates, low fees and an easy online application process. We analyzed HELOC offers from a wide range of banks, credit unions and online lenders to come up with this list of top lenders in this space: Overview: Fifth Third Bank offers checking and savings accounts, personal loans, home loans and more. The bank’s HELOC product, the Fifth Third Equity Flexline, has low fees and a low minimum APR. Perks: For a $95 fee, you can lock in your balance with a fixed rate over a fixed term, which is a great feature if you have a low rate and want to guarantee it over a set number of years. You can also earn Real Life Reward points when you use your loan funds for purchases using a credit card tied to your line of credit and get a 0.25 percent discount for autopay with a Fifth Third deposit account. What to watch out for: Fifth Third offers HELOCs in only 10 states. Overview: Chase is a national bank with branches and ATMs in 47 states and Washington, D. For its HELOCs, Chase customers may qualify for a rate discount up to 0.62 percent, and the lender waives certain fees for its customers. Other banks also offer relationship discounts, but Chase’s are more easily attainable. Perks: You can get 0.25 percent off your interest rate just for owning a qualified Chase account; another 0.12 percent off when you set up automatic payments from a Chase checking account; and an extra 0.25 percent off when you’re planning a $30,000 home improvement project or you withdraw $30,000 from your home equity line at closing. Plus, Chase pays for closing costs in most cases, and you can convert some or all of your balance to a fixed-rate loan during the life of the account. What to watch out for: There’s a $50 origination fee and $50 annual fee, though these are waived for qualified existing Chase home equity customers. Chase also has stricter credit requirements than some; its minimum credit score is 680. And although Chase has hundreds of locations across the country, HELOCs aren't available in Alaska, Hawaii and South Carolina. Note: Due to impacts of COVID-19, Chase is currently suspending applications for its HELOCs. There’s a $50 origination fee (waived for existing customers) and a $50 annual fee after the first year. Some borrowers may have to pay property insurance, flood insurance and a mortgage recording tax. Overview: Bank of America offers HELOCs in all 50 states and Washington, D. C., and nixes a lot of fees that other banks charge. You can also shave 0.25 percent off your rate when you set up automatic payments from a Bank of America checking or savings account, up to 1.5 percent off for withdrawing $150,000 or more and up to 0.375 percent off for being a Preferred Rewards client. Perks: If you qualify for the entire 2.125 percent discount on your interest rate, you’ll save a lot over the life of your loan. There are no application fees, no closing costs and no annual fees for qualified accounts. Rates vary depending on creditworthiness, loan amount and other factors, but they may go as low as 3.77 percent in some states. As with some other lenders, you can convert some or all of your balance to a fixed-rate loan. What to watch out for: The best rate discounts are reserved for Preferred Rewards members and those who make large draws from their HELOCs. Additionally, there’s a high bar to qualify for the application fee discount. Overview: Flagstar Bank offers HELOCs that are geared to consumers with credit scores around 660 and above. These lines of credit feature flexible withdrawal methods and affordable rates for those who can qualify. If you’re looking for a HELOC that offers attractive terms and you have a solid credit rating, you should check it out. Perks: Flagstar has flexible loan amounts that range from as little as $10,000 to up to $1 million. If you have strong credit, you could qualify for the best rates. What to watch out for: There’s an annual fee of $75, though it’s waived in the first year. And while most banks let you convert some or all of your balance to a fixed-rate loan, Flagstar’s APR remains variable for the life of the loan. Borrowers may also have to pay back closing fees if the account is closed within 36 months, and some loans require title insurance, government taxes and other fees. The annual fee is $75 (waived the first year), and borrowers may have to pay back closing fees if the account is closed within 36 months. Some loans require title insurance, government taxes and fees at closing. Overview: Figure is an online lender that currently offers HELOCs in 39 states with rates as low as 4.75 percent. It promises an easy online application process and fast funding, which is why it made our list. Its HELOC works a bit like a home equity loan in the beginning: You get the full loan amount (minus the origination fee) with a fixed rate. As you pay off the line of credit, you can borrow funds again up to the limit. Perks: This could be a good option for borrowers who need fast cash. You could get approved online in five minutes and access your funds in as little as five days. There’s also a fixed interest rate, which means this cost won’t change over the life of the loan. Additionally, the minimum credit score of 620 is low compared to some others on this list. What to watch out for: While some lenders offer a wide range of loan amounts, Figure caps its loans at $150,000. That could be a good option if you don’t need to borrow much, but it might not be enough for some borrowers. There’s also an origination fee of as much as 4.99 percent. Note: Due to impacts of COVID-19, Figure is currently suspending applications for its HELOCs. Overview: Established in 1828, Citizens Bank now has 1,100 branches spread across 12 states in the New England, Mid-Atlantic and Midwest regions. If you’re looking to borrow a small amount and you prefer banking in person, Citizens Bank is a solid choice. Lines of credit begin at $17,500 and there are ways to save on fees and your monthly rate. Perks: With Citizens Bank, you can borrow as little as $17,500 and pay no setup or appraisal fees. What to watch out for: There’s a $350 prepayment penalty if you pay off your HELOC within 36 months, along with a $50 annual fee (waived in the first year). It also may take up to 45 days to get your funding, which could be a deal breaker for some. Overview: Founded in 1847 and chartered under its current name in 2011, BMO Harris Bank has more than 500 branches spread across eight states. However, customers nationwide can bank with BMO online. Its HELOCs start at $25,000, come with flexible repayment terms and have no setup fees. Perks: With the fixed-rate HELOC, borrowers can borrow from their line of credit for 10 years and then choose from four repayment periods, during which they can lock a fixed interest rate. Loan amounts start at $25,000 and there are no application fees, no closing costs and a 0.25 percent discount when you set up autopay with a BMO Harris checking account. What to watch out for: Borrowers may have to repay setup costs if the line of credit is closed within 36 months. And depending on the state in which you live, you may also have to pay mortgage taxes. BMO Harris covers the setup costs, but the borrower may have to repay those costs if the line of credit is closed within 36 months. Depending on the state, borrowers may also have to pay mortgage taxes. Overview: Established in 1933 and now with nearly 9 million members, Navy Federal Credit Union is a popular credit union for service members, veterans and their families. It has a presence on four continents, earns top ratings for customer service and offers solid pricing on its financial products, including checking accounts, mortgages, auto loans and credit cards. Perks: You may borrow up to 95 percent of your home's equity with an APR starting at 5 percent, with loans ranging from $10,000 to $500,000. There are no application, origination, annual or inactivity fees. If you set up recurring payments from a Navy Federal checking account, you can qualify for a 0.25 percent rate discount. Plus, Navy Federal will cover most of your closing costs. What to watch out for: To apply for a HELOC, you must join the credit union, which limits membership to service members, veterans and their families. You may be responsible for certain fees and taxes, though Navy Federal doesn’t specify which ones. And if you pay off your loan within three years of closing, you'll have to reimburse Navy Federal for any closing costs it paid. Note: Due to impacts of COVID-19, Navy Federal Credit Union is currently suspending applications for its HELOCs. There are no application, origination, annual or inactivity fees. If you close the account within 36 months, you will have to repay closing costs. You'll need to pay certain government fees and recording charges, credit report fees, taxes and, when required, appraisal fees, title insurance and any fees associated with condominium properties Overview: Pentagon Federal Credit Union, or Pen Fed, serves more than 1.75 million members in all 50 states, the District of Columbia, and military bases in Guam, Puerto Rico and Okinawa. While Pen Fed has a history of serving service members, you may also qualify for membership through other select organizations. This credit union offers competitive rates on its HELOCs along with other financial services, including credit cards, checking accounts, savings accounts, mortgages and auto loans. Perks: Pen Fed's interest rates start at 3.75 percent and cap at 18 percent. It’s a low rate cap compared to some of the other institutions on this list. You’ll also get a break on certain fees, as Pen Fed pays most of the closing costs associated with its HELOCs. What to watch out for: While this credit union has flexible membership requirements, you still have to join to apply for a HELOC. This adds a step to the process and could be a deal breaker for some. Additionally, if you close your account within 36 months, you’ll be on the hook for the closing costs Pen Fed paid on your behalf. There’s also a $99 annual fee (waived if you paid more than $99 in interest in the previous year), and you also may have to pay taxes in certain states and appraisal fees if an appraisal is required. Its loan amounts are some of the most flexible we’ve seen, starting at $10,000 and going as high as $1 million. Overview: Citibank is one of the largest financial institutions in the world and offers HELOCs in every state in the U. With a presence in nearly every state, just about any borrower can find a loan amount they need. Perks: You can borrow as little as $10,000 and as much as $1 million, giving you flexible options. There are no application fees, and Citi pays for most third-party closing costs. Customers who set up autopay may get a rate discount, although Citi doesn’t specify how much. What to watch out for: While you can start a HELOC application online, you may need to visit a branch at closing. There’s a $50 annual fee during the draw period for most customers, and you can choose to either pay closing costs or receive a rate discount. If you close the account within 36 months, you may have to repay closing costs that were paid on your behalf. Borrowers may also have to pay for property insurance and any fees to release an existing mortgage. Overview: TD Bank customers can visit its nearly 1,300 branches, spread along the East Coast, seven days a week and even during a few federal holidays. Its long hours and weekend policy is one reason this bank made our list. It’s a great option if you prefer to bank in person and have a question on a Sunday morning, for example. Of course, you can also bank by phone, online or via mobile app. Perks: Aside from its ultra-flexible hours, TD Bank also excels in other ways. It typically ranks high in customer satisfaction and offers low rates on its HELOCs (starting at 3.74 percent). Borrowers may also get a 0.25 percent rate discount by setting up payments from a TD Bank checking account. What to watch out for: Though TD Bank does charge fees, they’re mostly avoidable. The $50 annual fee applies to draws over $50,000, and if you close the account within 24 months, you may have to pay a 2 percent prepayment penalty (max $450). There’s a $99 origination fee, and you may have to pay closing costs on certain accounts. There are other options for using the value of your home equity besides a HELOC. These include home equity loans and cash-out refinancing. You could also turn to personal loans or decide to delay spending until you can save up the cash. Consider all options carefully before making your decision. Our storefront can help you target the best opportunities and rates in your area. It’s always a good idea to shop around with a few lenders to compare rates, fees and loan terms. In addition to estimating your home equity, lenders look at credit history, credit score, income and other debts. Most lenders require a total loan-to-value ratio of 85 percent or less, a credit score of 620 or higher and an adequate debt-to-income ratio to approve you for a home equity line of credit. The draw period expiration of a HELOC refers to a time when you can no longer draw any remaining loan amounts. This draw period expiration will vary based on the lender and the payment period you have signed on for. At the end of the draw period, the facility converts to a fixed repayment schedule, like a mortgage, where you make equal monthly payments. Interest paid on a HELOC is tax-deductible as long as it’s used to “buy, build or substantially improve the taxpayer’s home that secures the loan,” according to the IRS. Interest is capped at $750,000 on home loans (combined mortgage and HELOC or home equity loan). So if you had a $600,000 mortgage and $300,000 HELOC for home improvements on a house worth $1.2 million, you could only deduct the interest on the first $750,000 of the $900,000 you borrowed. If you are using a HELOC for any purpose other than home improvement (such as starting a business or consolidating high-interest debt), you cannot deduct interest under the new tax law. Like credit cards, HELOCs typically have variable interest rates — meaning the rate you initially receive may rise or fall during your draw and repayment periods. However, some lenders have begun offering options to convert all or part of your variable-rate HELOC into a fixed-rate HELOC, sometimes with an additional fee. Choosing between a HELOC and a home equity loan comes down to your financial situation, needs and priorities. A HELOC usually has a longer repayment period and allows you to take only the money you need, when you need it, so it may be best for people who have ongoing expenses or those who prefer to pay back debt at their own pace. A home equity loan, on the other hand, offers slightly more predictability in terms of monthly payments, since you'll receive a large sum of money upfront and pay it back in monthly installments with a fixed interest rate. Home equity loans are usually best for people who need a lump sum right away and want a predictable monthly payment. A HELOC has two stages: the draw period and the repayment period. The draw period, which typically lasts up to 10 years, is the time in which you can use your funds as needed. During the draw period, you have the option to pay back your principal and replenish funds, but you're usually only required to pay your interest each month. Following the draw period is the repayment period, which can last up to 20 years. During this time, you can no longer access funds; you'll instead make monthly payments on both your principal and your interest as you would with a home equity loan. As such, your monthly payments will be much higher. A home equity line of credit, or HELOC, has an adjustable rate of interest attached to paying it off, which means that your payments can fluctuate based on the federal funds rate. Think about a home loan if the idea of an adjustable rate unnerves you. This is how much you owe versus how much the home is worth. Many people are in trouble now because their homes dropped in value. You don't want to be stuck owing more than your house is worth. Figure out what the loan is for and how long you'll need the money to help decide which kind of loan you need. Home equity loans are better for single lump sum expenses while home equity lines of credit, or HELOCs, are best for prolonged expenses, like college tuition. If you want another option that is a little bit more flexible and can often be more affordable for most people in the long run, why not try a line of credit? This article will take a look at how to get the best rate for a line of credit, the different types of lines of credit, and more. But before diving into all of that important information, let’s look a little closer at what a line of credit actually is. is a form of a loan, it is different from the idea of a traditional loan where the entire amount is given to you at once and then you must pay it back in. A line of credit is essentially an agreement between you and a lender. This agreement will establish a specific balance that you, the customer, will be able to pull from and use as needed. You can use the money at any time and for any reason, so long as you do not go over the limit. So let’s say you and a bank agree to a $10,000 line of credit. You will be able to pull as little or as much from that whenever you want, as long as it is within the guidelines agreed upon by both parties. Of course, you will still need to make timely payments based on your particular agreement with the institution. The main advantages of a line of credit over a traditional loan are their flexibility and the fact you only pay interest on the money you borrow and spend, not on the entire line of credit. It is flexible because you can essentially only take out what you need and don’t need to be stuck with a massive loan you need to repay. And add to that the fact that you only have to pay back what you spend and not the entire thing, and you have a real winner for people who want more flexibility than a traditional loan will give you. A line of credit is a perfect example of what’s called a revolving account. Basically, the money can be spent and repaid on an almost endless cycle. This differs from traditional loans which are repaid in equal monthly instalments vs. Just like there are many different reasons to use a traditional loan, there are a number of different reasons a person might want to use a line of credit. One of the most common reasons is just to have a little more peace of mind and reassurance that you have access to a set amount of money in case any , to purchase furniture or anything else you might need. However, most financial institutions won’t approve a line of credit that’s enough to afford a home/mortgage, so you might need to stick with a traditional loan. Basically, there is an endless number of reasons why you might need or want to use a line of credit, as it is essentially an easy and instant way to get money into your bank account quickly. There are two main kinds of lines of credit, unsecured and secured. An unsecured line of credit does not require any collateral or security and a secured line of credit does, often your home, car, or business. So now that you know about the different types of lines of credit and what they can be used for, let’s learn a bit more about how to get the best rate for a line of credit in Canada. The first thing you should do is get your credit in check and have a good This means that if your credit report isn’t great, you might want to take some time to pay off any outstanding debts and make timely payments in order to ensure your credit score is higher so that you are an ideal client. Of course, there are plenty of LOC options for those with less-than-stellar credit reports, but the Also, if you are in the market to move to a new bank altogether, you should let them know. Banks are all about making money, so if you bring them more business in the form of your accounts and investments as well as a line of credit, they might be willing to give you a lower interest rate to try “warm you up” to the idea of bringing all of your banking to their institution. Lastly, doing your research and shopping around for the best interest rate is often a good idea as well. Not every financial institution is going to give you the same rate, so take some time to speak to numerous different lenders and see who can provide you with the best interest rate. A line of credit is helpful in a number of different ways and is great for peace of mind, as you will always have some money to borrow if you need it. Hopefully, this article taught you all you need to know about lines of credit and showed you how to go out and get the best rate you possibly can. Of course, as with any type of loan or borrowing, you should ensure that you only borrow what you can afford to pay back. Getting stuck in an All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Rbc line of credit interest rate 2019 rbc group advantage When you apply for a Royal Credit Line, you can choose to apply for either a secured or unsecured line of credit Secured Line of Credit You could use the equity in your home or your investment portfolio as collateral to secure a higher credit limit at a lower interest rate. Hi guys - I have had this RBC $20,000 unsecured Line of Credit LOC opened for 2 yrs, never used it. It is not HELOC. They have sent me a letter saying that effective last week my interest rate would be Prime + 0% until July 30, 2019, but they have the rights to adjust the interest rate without notification. If you own a home, using the equity you have built up may be one of the most cost-effective ways to lower your borrowing costs. In many cases, home equity loans and lines of credit can offer you a lower interest rate as compared to other types of loans while providing you with access to credit for unexpected expenses or home improvement projects. You may be able to borrow against the equity in your home to finance other needs such as a home renovation, debt consolidation, college tuition and more. You can generally borrow up to 80% of the appraised value of your house. RBC Homeline Plan with a registered collateral mortgage on your principal residence, or other collateral. With a secured credit line, we can offer you a lower interest rate than we could with a regular, unsecured line of credit. Our mortgage add-on feature is another way you can use your existing home equity to fund a renovation or other financial goals. This convenient mortgage option lets you access additional funds by simply adding them on to your existing RBC Royal Bank mortgage, based on the current appraised value of your home. A line of credit is a type of loan that lets you borrow money up to a pre-set limit. You don't have to use the funds for a specific purpose. You can use as little or as much of the funds as you like, up to a specified maximum. You only have to pay interest on the money you borrow. To use some lines of credit, you may have to pay fees. For example, you may have to pay a registration or an administration fee. Ask your financial institution about any fees associated with a line of credit. Usually, the interest rate on a line of credit is variable. You pay interest on the money you borrow from the day you withdraw money until you pay the balance back in full. Your credit score may affect the interest you'll pay on a line of credit. It tells lenders how risky it is to lend you money. Usually, the higher your credit score, the lower the interest rate on your line of credit will be. To access money from a line of credit, you may: You'll get a statement showing the amount owing on your line of credit each month. Usually, this payment is equal to the monthly interest. However, paying only the interest means that you'll never pay off the debt that you owe. Before taking out a line of credit, compare the pros and cons. You can apply for a secured or unsecured line of credit. With a secured line of credit, you use an asset as collateral for the line of credit. For example, the asset could be your car or your home. If you don't pay back what you owe, the lender can take possession of that asset. The advantage is that you can get a lower interest rate than with an unsecured line of credit. A home equity line of credit is a type of secured credit where your house acts as collateral. It usually has a higher credit limit and lower interest rate than other loans and lines of credit. With an unsecured line of credit, the loan isn't secured by any of your assets. Some types include personal lines of credit and student lines of credit. A personal line of credit may be used for unexpected expenses or consolidating higher interest rate loans. Interest rates are usually lower than for credit cards and personal loans. A student line of credit is specifically for paying for post-secondary education. Student lines of credit can be used to help pay for basic expenses, such as tuition, books, and housing. Learn what to consider before using a student line of credit. When you apply for a line of credit or a loan, a financial institution will ask for a lot of personal information. The lender will also take a close look at your finances to make sure you can repay your debt. They will consider: Financial institutions usually require a minimum household income of $35,000 to $50,000 to approve a line of credit. When you get a loan or line of credit with a federally regulated financial institution, you have the right to receive certain information. You may make a complaint if your financial institution doesn't give you all the required information. Your lender may offer optional insurance for your line of credit, also known as: This is a type of credit and loan insurance. You don’t need to sign up for insurance to be approved on your line of credit. This type of insurance may help cover your loan payments if you can’t make them due to illness, accident, death or if you lose your job, usually up to a maximum amount. But, there are important exclusions in the coverage that line of credit insurance provides. Exclusions are anything that your insurance won’t cover. Make sure to read the certificate of insurance to determine what’s covered and the maximum amount of your line of credit that will be covered before purchasing this insurance. The price of the insurance may vary based on your age and the amount of your line of credit. Federally regulated lenders, such as banks, can’t add optional insurance on your line of credit without your permission. If optional insurance has been added to your line of credit without your permission, contact FCAC to file a complaint. You should ask your lender to remove the optional services and reverse the charges. It's important to read and understand the terms and conditions of insurance before buying it.