No. of Recommendations: 0
Funny, I'm going through the same scenario myself right now. Because I have a co-op, my rate is 7.25 (prime + 1.25%) though. At least, that's what they tell me. My FICO score is 705, last time I checked a few weeks ago.

Haven't made up my mind for the very reasons Buckmizer (Fred) mentioned. It's just another debt to add to the load.

But if there's the threat of an emergency in the near future, and you don't have enough built up in your e-fund, there doesn't seem to be much of a drawback. For me, I doubt I'll stay in the co-op long enough to avoid paying the early closure fee ($900 -- only payable if I close the account before 3 years), so I'm not sure it's worth the $900 expense just to have cash available in case I need it. There are probably better ways to spend that money.

Check the fine print and make sure you don't get into something you have to pay for down the road. My offer of no closing costs, as I said, is contingent on me holding the credit line open for more than 3 years -- so if I sell the apartment, move, or close the line, I'm liable for at least $900.

Just my $0.02.
Good luck!
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