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medstudent1011

Medical LOC denied

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Hi!

Just wondering if anyone else has had their LOC with Scotiabank denied. They're asking for a co-signor, but I'm wondering if I should try RBC first. Has anyone been successful with a co-signor?  It's hard to find anyone on these forums who has been denied, so if anyone has gone through this, could you please PM me? I am majorly stressing out right now...

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How's your credit? Any big bankrupcies in the past? Do you pay your bills on time? Are you going to med school in Canada, the States or abroad? I find that Scotia is usually the best at getting these LOC approved from personal experience.

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8 minutes ago, hero147 said:

How's your credit? Any big bankrupcies in the past? Do you pay your bills on time? Are you going to med school in Canada, the States or abroad? I find that Scotia is usually the best at getting these LOC approved from personal experience.

No bankrupcies and I'm going to a school in Canada. Credit took a hit a couple years ago (really rough times), but I've been building it up. I don't have any large debt (no student loans/LOCs), but I have a couple small credit cards and a small auto loan (no late payments). Would it be even harder to get a LOC with RBC?

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1 hour ago, medstudent1011 said:

No bankrupcies and I'm going to a school in Canada. Credit took a hit a couple years ago (really rough times), but I've been building it up. I don't have any large debt (no student loans/LOCs), but I have a couple small credit cards and a small auto loan (no late payments). Would it be even harder to get a LOC with RBC?

I couldn't tell ya. But its definitely worth asking around to see if RBC will let you take out a LOC. Did you talk to someone who deals with professional student lines of credits at Scotia especially for med students when they denied you? If you talk to the wrong person, sometimes they are less willing to bat for you when applying for a LOC at a particular bank. Try to find out who the go-to person for your school is. If they say no, you can start exploring other options.

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1 hour ago, medstudent1011 said:

No bankrupcies and I'm going to a school in Canada. Credit took a hit a couple years ago (really rough times), but I've been building it up. I don't have any large debt (no student loans/LOCs), but I have a couple small credit cards and a small auto loan (no late payments). Would it be even harder to get a LOC with RBC?

Did you go to an advisor who often works with medical students? (I.e. an advisor in a city with a medical school)?

 

If not, try e-mailing one who works in the city of your medical school. You may have better success.

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3 hours ago, medstudent1011 said:

No bankrupcies and I'm going to a school in Canada. Credit took a hit a couple years ago (really rough times), but I've been building it up. I don't have any large debt (no student loans/LOCs), but I have a couple small credit cards and a small auto loan (no late payments). Would it be even harder to get a LOC with RBC?

You dont need a cosigner. Walk away

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Just thought I'd update this thread for anyone else who finds themselves in this situation. 

I ended up getting approved for the full amount (incl. credit card and all other perks) from RBC with no cosigner. There were no issues and their customer service was amazing. 

On another note - make sure your advisor knows that they are doing. I contacted an advisor from the Scotiabank list above and still ended up with someone who didn't handle my application properly. 

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29 minutes ago, medstudent1011 said:

Just thought I'd update this thread for anyone else who finds themselves in this situation. 

I ended up getting approved for the full amount (incl. credit card and all other perks) from RBC with no cosigner. There were no issues and their customer service was amazing. 

On another note - make sure your advisor knows that they are doing. I contacted an advisor from the Scotiabank list above and still ended up with someone who didn't handle my application properly. 

ha I will say again - I am glad it worked out - really getting the right advisor is simply critical to the process. Be aware of your options 

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On 6/26/2019 at 3:44 PM, Guy in the know said:

CIBC is now up to $350,000 for Canadian MD Programs

And yet you guys don't even offer any premium credit cards, free overdraft protection, etc. Nothing. Nada. Zilch.

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5 hours ago, xiphoid said:

overdraft protection

Just so everyone knows, the “free” overdraft protection from scotia is only free if you don’t use it. The second you go even 1 cent into overdraft, you get a 5 dollar fee plus interest. This is especially frustrating because there’s no way to auto-transfer money from the LOC into the chequing account for recurring expenses so that there’s money there for rent, insurance, etc. - you have to remember to do it manually (which I have messed up a few times). In one case, I had fixed the overdraft before I got charged the 5 dollar fee, so when the fee hit, I was “in overdraft” again and got charged the fee again... also double check your statements - mine was billing at prime instead of prime -0.25

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3 hours ago, Comprehensible said:

Just so everyone knows, the “free” overdraft protection from scotia is only free if you don’t use it. The second you go even 1 cent into overdraft, you get a 5 dollar fee plus interest. This is especially frustrating because there’s no way to auto-transfer money from the LOC into the chequing account for recurring expenses so that there’s money there for rent, insurance, etc. - you have to remember to do it manually (which I have messed up a few times). In one case, I had fixed the overdraft before I got charged the 5 dollar fee, so when the fee hit, I was “in overdraft” again and got charged the fee again... also double check your statements - mine was billing at prime instead of prime -0.25

As I am soon to start relying 100% on the LOC, this is really good to know. The advisor really sold me the « free » overdraft, so thanks for the heads up

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3 hours ago, Comprehensible said:

Just so everyone knows, the “free” overdraft protection from scotia is only free if you don’t use it. The second you go even 1 cent into overdraft, you get a 5 dollar fee plus interest. This is especially frustrating because there’s no way to auto-transfer money from the LOC into the chequing account for recurring expenses so that there’s money there for rent, insurance, etc. - you have to remember to do it manually (which I have messed up a few times). In one case, I had fixed the overdraft before I got charged the 5 dollar fee, so when the fee hit, I was “in overdraft” again and got charged the fee again... also double check your statements - mine was billing at prime instead of prime -0.25

Are you sure your account was set up correctly? The fact that it was accruing interest at prime makes me question if your advisor perhaps did the set-up wrong. From what I understand, the Scotiabank/RBC overdraft protection should waive the $5 fee as long as you are not more than $5,000/$1,000 over, making it interest only on the overdrawn amount. Not completely sure because I've never used it in my life and I don't ever intend to, but I'd just double check your account is set up properly.

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13 hours ago, xiphoid said:

Are you sure your account was set up correctly? The fact that it was accruing interest at prime makes me question if your advisor perhaps did the set-up wrong. From what I understand, the Scotiabank/RBC overdraft protection should waive the $5 fee as long as you are not more than $5,000/$1,000 over, making it interest only on the overdrawn amount. Not completely sure because I've never used it in my life and I don't ever intend to, but I'd just double check your account is set up properly.

I’ve tried to look into it but I’ve yet to speak to someone who could really help me.m make sure all is set up right - and ive tried calling the suppose reps in several cities and online. I also didn’t get the Amex points last year but I understand that was a bit of a mixed bag - seems like the welcome rewards this year are much better (I keep getting ads for the plan). I asked about it recently and was told that they don’t remember if there were points for the card last year.

When I asked about the overdraft I was told that it’s “free” insofar as they waive the 5 bucks that are normally charged monthly as a form of insurance against overdraft, but if you use the overdraft then they charge you the fee (and I guess maybe I got unlucky and the time I got double hit was across 2 billion cycles). 

Are you just super careful about your cheques to avoid the overdraft?

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2 hours ago, Comprehensible said:

I’ve tried to look into it but I’ve yet to speak to someone who could really help me.m make sure all is set up right - and ive tried calling the suppose reps in several cities and online. I also didn’t get the Amex points last year but I understand that was a bit of a mixed bag - seems like the welcome rewards this year are much better (I keep getting ads for the plan). I asked about it recently and was told that they don’t remember if there were points for the card last year.

When I asked about the overdraft I was told that it’s “free” insofar as they waive the 5 bucks that are normally charged monthly as a form of insurance against overdraft, but if you use the overdraft then they charge you the fee (and I guess maybe I got unlucky and the time I got double hit was across 2 billion cycles). 

Are you just super careful about your cheques to avoid the overdraft?

I got the Amex bonus points last year, as did everyone else I know who spent the $1,000 in 3 months. We were told that we wouldn't get it, but we all did. This to me sounds like your account was not set up properly.

I keep all my money in savings/LOC. If I am about to write a cheque, I transfer that amount to my chequing account. I've had a bank account since I was 13, and I have never used overdraft in my life. It really isn't that hard... think of cheques like cash - make sure you have the cash before you pay. I really only use cheques to pay my rent and utilities each month, so it's not like it's a huge hassle to log into my account twice a month to transfer the money.

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3 hours ago, xiphoid said:

I got the Amex bonus points last year, as did everyone else I know who spent the $1,000 in 3 months. We were told that we wouldn't get it, but we all did. This to me sounds like your account was not set up properly.

I keep all my money in savings/LOC. If I am about to write a cheque, I transfer that amount to my chequing account. I've had a bank account since I was 13, and I have never used overdraft in my life. It really isn't that hard... think of cheques like cash - make sure you have the cash before you pay. I really only use cheques to pay my rent and utilities each month, so it's not like it's a huge hassle to log into my account twice a month to transfer the money.

Right I just have post-dated cheque’s for rent and auto-debit for insurance so sometimes I forget to move it before the 1st. It’s totally my mess up, but frustrating.

if anyone has a good advisor who might want to look over my account, that would be great (apparently my original advisor has left anyways).

 

 

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On 7/5/2019 at 9:35 AM, NLengr said:

Sweet God. That is insane. 

yes....yes it is. 

I mean really yeah it is. I can say with the sort of certainty of someone coming out the other side that you wouldn't want to come close to that level of debit. Sure you can pay it off in the end - but ok that still means for your average specialist spending over 1/2 their post tax income on killing the loan for 3 years roughly assuming they also didn't just have to similarly spend to get their practise up and running. This is adding years effectively to the end of training which already is taking 10-15 years. Yet the real problem is the severe limitations it can put on you during your training - it is great if you can pay it off in the end but the psychology of watching your pay cheques during residency significantly go to interest isn't great. Plus heaven forbid the interest rates actually rise - which is a big unknown. 

this is sort of a trap. Ok they raise tuition so the banks swop in and say ok we will raise your LOC so you are fine. Then the schools look at it and say with those sorts of LOCs you can afford more so I will bump up the tuition again. Along then comes the bank and..... You have banks on the governing boards of all these universities as well so if you were bit paranoid you might be wondering how all this went down. 

They have risen what? 150K in the past 10 years or so. Tuition has doubled. At some point we have to apply some controls here. We have been saying that for 15 years at least. 

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On 7/5/2019 at 9:35 AM, NLengr said:

Sweet God. That is insane. 

Interest to carry that full amount at current prime -0.25 is about $1000 per month. 

Just to carry it. 

Imagine 27% of your after-tax PGY-1 income going solely toward interest payments.

And you know that somebody, somewhere, is doing just that.

Hay-zeus.

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On 7/5/2019 at 12:12 PM, Comprehensible said:

Just so everyone knows, the “free” overdraft protection from scotia is only free if you don’t use it. The second you go even 1 cent into overdraft, you get a 5 dollar fee plus interest. This is especially frustrating because there’s no way to auto-transfer money from the LOC into the chequing account for recurring expenses so that there’s money there for rent, insurance, etc. - you have to remember to do it manually (which I have messed up a few times). In one case, I had fixed the overdraft before I got charged the 5 dollar fee, so when the fee hit, I was “in overdraft” again and got charged the fee again... also double check your statements - mine was billing at prime instead of prime -0.25

Why aren't you auto withdrawing those expenses directly from your LOC? Literally the most logical step.

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On 7/6/2019 at 8:12 AM, xiphoid said:

I got the Amex bonus points last year, as did everyone else I know who spent the $1,000 in 3 months. We were told that we wouldn't get it, but we all did. This to me sounds like your account was not set up properly.

I keep all my money in savings/LOC. If I am about to write a cheque, I transfer that amount to my chequing account. I've had a bank account since I was 13, and I have never used overdraft in my life. It really isn't that hard... think of cheques like cash - make sure you have the cash before you pay. I really only use cheques to pay my rent and utilities each month, so it's not like it's a huge hassle to log into my account twice a month to transfer the money.

Not a huge hassle at all.

That said, why even go through the extra 2 seconds of steps when you can just get cheques for your LOC if you do use it.

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1 hour ago, JohnGrisham said:

Why aren't you auto withdrawing those expenses directly from your LOC? Literally the most logical step.

I don’t think I can when I am paying with post dated cheque’s, can I? The cheque’s are attached to the chequing account, not the LOC. Scotia seemed opposed to the idea of anyrhing auto transferring out of the LOC into the chequing account. 

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25 minutes ago, Comprehensible said:

I don’t think I can when I am paying with post dated cheque’s, can I? The cheque’s are attached to the chequing account, not the LOC. Scotia seemed opposed to the idea of anyrhing auto transferring out of the LOC into the chequing account. 

I have cheques attached to my LOC, and have auto-withdrawals from services like my rent and insurance coming from my LOC.  Why would i have use for cheques to my chequing account, when i don't have a single $ to my name that shouldn't be going to my LOC if i did :P

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