Jump to content
Premed 101 Forums
Sign in to follow this  
ZoomioG

Line of Credit Only for Perks?

Recommended Posts

Hey All!

I will be starting medical school in August! I have all of my finances sorted out for tuition and everything else, I don’t need a LOC for financial help, which is a blessing. However, I wanted to take advantage of the perks that come along with ScotiaBank’s LOC like the two credit cards with sign up bonuses and the current $300 cash offer with the free bank account. I was told by an advisor that as long as I do not use the LOC, I will never be charged anything for it. I just wanted to get people’s opinions on doing this and if there are any downsides?

Share this post


Link to post
Share on other sites

I'm using the Scotia LOC and from what I've researched there are no downsides that i can think of (I actually will be using my LOC though).

There are some conditions you have to meet to get all the perks, but other than that I don't see why not. You don't have to actually use the LOC to meet any of the conditions. 

 

Must be nice to be rich  :)

Share this post


Link to post
Share on other sites
2 hours ago, ZoomioG said:

Hey All!

I will be starting medical school in August! I have all of my finances sorted out for tuition and everything else, I don’t need a LOC for financial help, which is a blessing. However, I wanted to take advantage of the perks that come along with ScotiaBank’s LOC like the two credit cards with sign up bonuses and the current $300 cash offer with the free bank account. I was told by an advisor that as long as I do not use the LOC, I will never be charged anything for it. I just wanted to get people’s opinions on doing this and if there are any downsides?

I can’t think of a single downside. And there are several upsides.

The main thing to think about would be your credit score. Credit score calculations are a bit of a mystery, but I believe low credit utilization (e.g. what % of your total available credit do you carry as a balance each month) is generally worth quite a bit, as is long held accounts. Some people say it’s good to use things like credit cards regularly and pay them off each month, in order to build your credit. I am not sure that the same would be necessary for an loc though.

The only other thing I can think of is if you wanted to, for example, apply for a mortgage, the the bank is going to look at your total debt load - so it’s possible in that case that the line of credit might limit the total amount of financing available to you. But you can always close the LOC if that became a problem. If you’re actually planning on mortgaging a house soon you may want to look into what sort of financing you’d qualify for with the LOC, but otherwise I don’t think it matters.

From personal experience - I carried no balance on my loc for two years before I ran out of savings, and it didn’t seem to affect my credit in the slightest. 

 

Share this post


Link to post
Share on other sites
3 hours ago, ZoomioG said:

Hey All!

I will be starting medical school in August! I have all of my finances sorted out for tuition and everything else, I don’t need a LOC for financial help, which is a blessing. However, I wanted to take advantage of the perks that come along with ScotiaBank’s LOC like the two credit cards with sign up bonuses and the current $300 cash offer with the free bank account. I was told by an advisor that as long as I do not use the LOC, I will never be charged anything for it. I just wanted to get people’s opinions on doing this and if there are any downsides?

Nothing wrong with that. Why not do it? Zero downsides. 

 

Share this post


Link to post
Share on other sites

Thanks for the input guys, really helps! I would plan to cancel the LOC at anytime if I feel the need so I don't think the mortgage issue should arise, but good to know still. Also I just wanted to confirm with others that if I don't ever use the LOC, I shouldn't be charged any additional fees or any interest right? 

Share this post


Link to post
Share on other sites
5 hours ago, ZoomioG said:

Thanks for the input guys, really helps! I would plan to cancel the LOC at anytime if I feel the need so I don't think the mortgage issue should arise, but good to know still. Also I just wanted to confirm with others that if I don't ever use the LOC, I shouldn't be charged any additional fees or any interest right? 

Interest is only on the balance, not on the amount of credit available (same as a credit card). Also, having this will not affect a mortgage, as again, you will only be limited by your actual debt (credit used).

Share this post


Link to post
Share on other sites
21 hours ago, ZoomioG said:

Hey All!

I will be starting medical school in August! I have all of my finances sorted out for tuition and everything else, I don’t need a LOC for financial help, which is a blessing. However, I wanted to take advantage of the perks that come along with ScotiaBank’s LOC like the two credit cards with sign up bonuses and the current $300 cash offer with the free bank account. I was told by an advisor that as long as I do not use the LOC, I will never be charged anything for it. I just wanted to get people’s opinions on doing this and if there are any downsides?

There is literally no downside to keeping an LOC and not using it. My brother and I took out an LOC for med and dent and neither of us used it. However, we did get the LOC for the credit card bonuses, no minimum balance, no forex fees, account opening bonuses, etc. Also, we switched banks for our LOC every year to take advantage of each banks bonus offer for travel and had our tickets paid for multiple vacations each year. In the end, the advisors at TD, RBC and CIBC kind of knew we were going to stick with Scotia but they understood our crazy desire to travel all the time. So definitely get an LOC and use the perks to the max lol

Share this post


Link to post
Share on other sites
1 hour ago, Compton said:

There is literally no downside to keeping an LOC and not using it. My brother and I took out an LOC for med and dent and neither of us used it. However, we did get the LOC for the credit card bonuses, no minimum balance, no forex fees, account opening bonuses, etc. Also, we switched banks for our LOC every year to take advantage of each banks bonus offer for travel and had our tickets paid for multiple vacations each year. In the end, the advisors at TD, RBC and CIBC kind of knew we were going to stick with Scotia but they understood our crazy desire to travel all the time. So definitely get an LOC and use the perks to the max lol

privileged rich people things ...

Share this post


Link to post
Share on other sites
On 7/10/2019 at 9:05 PM, ysera said:

Must be nice to be rich  

Sigh. To offer a different perspective, I was rejected for student loans because I have reached my lifetime maximum. Meaning I will have to pay the remaining student loan balance (nearly 35,000, down from 78,000 at the end of my Masters) with the LOC. Meaning after tuition and the cost of relocating across the country, I will be STARTING med school with  a nearly 70,000 dent in the LOC. Right off the bat. Oh well, it’s not like I have a choice. It’ll all be worth it in the end, right? 

Share this post


Link to post
Share on other sites
1 hour ago, medschool40&cool said:

Sigh. To offer a different perspective, I was rejected for student loans because I have reached my lifetime maximum. Meaning I will have to pay the remaining student loan balance (nearly 35,000, down from 78,000 at the end of my Masters) with the LOC. Meaning after tuition and the cost of relocating across the country, I will be STARTING med school with  a nearly 70,000 dent in the LOC. Right off the bat. Oh well, it’s not like I have a choice. It’ll all be worth it in the end, right? 

I was making a joke, no hard feelings to OP lol. 

 

Most med school students come from a privileged background to I'm glad we have some people from other perspectives. I also come from a poor family though I don't have the financial issues you mentioned with the LOC. 

 

Edit: it'll definitely be worth it just from a financial perspective (most of us here are also passionate about the medical science aspect too). I always find it funny that many people in these forums complain about 200-300K salaries, and people seem to think that lawyers / engineers / business students are making that sort of money. I can tell you my sister is a business graduate and I have engineers, lawyers and dentists in my family, all of them are fairly successful and non of them are making anywhere near that for the foreseeable future. As a business graduate from the best business program in this country, my sister will be in the top 10% of her profession if she ever breaks 6 figures. 

 

So ya, financially you'll be fine, even if it doesn't seem like it right now. 

Share this post


Link to post
Share on other sites
6 hours ago, medschool40&cool said:

Sigh. To offer a different perspective, I was rejected for student loans because I have reached my lifetime maximum. Meaning I will have to pay the remaining student loan balance (nearly 35,000, down from 78,000 at the end of my Masters) with the LOC. Meaning after tuition and the cost of relocating across the country, I will be STARTING med school with  a nearly 70,000 dent in the LOC. Right off the bat. Oh well, it’s not like I have a choice. It’ll all be worth it in the end, right? 

You'll be fine. A ton of people in my class started med school with significant undergrad debt. That's the norm in Atlantic Canada. All you Ontario and Western Canada kids must be filthy rich. :lol:

Just budget and make sure you give yourself a cushion during med school. Try to limit frivolous spending (buy the cheaper scotch!) because you pay it back as a staff with a significant tax hit and interest premium.

Share this post


Link to post
Share on other sites
8 hours ago, NLengr said:

You'll be fine. A ton of people in my class started med school with significant undergrad debt. That's the norm in Atlantic Canada. All you Ontario and Western Canada kids must be filthy rich. :lol:

Just budget and make sure you give yourself a cushion during med school. Try to limit frivolous spending (buy the cheaper scotch!) because you pay it back as a staff with a significant tax hit and interest premium.

As an Ontario kid who was lucky enough to have no undergrad debt but who is currently living on the LOC - I’m sure the 30k/year tuition will help me catch up real soon!

edit: Just double checked - Dal is way more than I anticipated (about 23k). I retract my joke. 

Share this post


Link to post
Share on other sites
14 hours ago, ysera said:

 

 

Edit: it'll definitely be worth it just from a financial perspective (most of us here are also passionate about the medical science aspect too). I always find it funny that many people in these forums complain about 200-300K salaries, and people seem to think that lawyers / engineers / business students are making that sort of money. I can tell you my sister is a business graduate and I have engineers, lawyers and dentists in my family, all of them are fairly successful and non of them are making anywhere near that for the foreseeable future. As a business graduate from the best business program in this country, my sister will be in the top 10% of her profession if she ever breaks 6 figures. 

 

Irrelevant to the thread but this is comparing apples and oranges. Market is based on supply and demand. 

Share this post


Link to post
Share on other sites
6 hours ago, allmight said:

Irrelevant to the thread but this is comparing apples and oranges. Market is based on supply and demand. 

He asked if he'll be alright so I wanted to let him know he will be, ha. Anyone who enjoys being a medical doctor and practices in North America will be more than fine financially. 

 

Medicine is tricky because physician income is not 100% tied directly to the market. If Canada wasn't bordering the States, physician income wouldn't be tied to the market at all, such as is the case in all of Europe and the rest of the industrialized world. But alas, we do border the States, which is why people still complain about being paid "only" 200K+, and how they'd be making millions if they went into engineering / finance / etc. 

Share this post


Link to post
Share on other sites
7 hours ago, ysera said:

He asked if he'll be alright so I wanted to let him know he will be, ha. Anyone who enjoys being a medical doctor and practices in North America will be more than fine financially. 

 

Medicine is tricky because physician income is not 100% tied directly to the market. If Canada wasn't bordering the States, physician income wouldn't be tied to the market at all, such as is the case in all of Europe and the rest of the industrialized world. But alas, we do border the States, which is why people still complain about being paid "only" 200K+, and how they'd be making millions if they went into engineering / finance / etc. 

Yes I meant my statement was irrelevant to the thread. And I haven't actually heard of anyone complaining about being paid as a doctor or anyone with the misconception that they would be making millions if they went into engineering or finance, I'm sure if those people you're talking about did a simple google search, they'd find reality. As well, I'm not sure what your point is about being tied to the market or not? A free market is one in which there are no artificial restrictions placed and supply and demand will balance all things out as they should be (Thanos, 2019). If supply and demand is best for balancing the rest of the economy, why not medicine? Why does what Europe and the rest of the industrialized world do, as you say, have any connection to Canada and the US? I don't follow what your point is, feel free to elaborate. 

Share this post


Link to post
Share on other sites
2 minutes ago, allmight said:

Yes I meant my statement was irrelevant to the thread. And I haven't actually heard of anyone complaining about being paid as a doctor or anyone with the misconception that they would be making millions if they went into engineering or finance, I'm sure if those people you're talking about did a simple google search, they'd find reality. As well, I'm not sure what your point is about being tied to the market or not? A free market is one in which there are no artificial restrictions placed and supply and demand will balance all things out as they should be (Thanos, 2019). If supply and demand is best for balancing the rest of the economy, why not medicine? Why does what Europe and the rest of the industrialized world do, as you say, have any connection to Canada and the US? I don't follow what your point is, feel free to elaborate. 

Well I disagree that supply side economics is the best way to balance an economy, I actually think it's one of the worst ways. Also you can't have a supply-demand model dictating your healthcare because if you are sick, there is no limit on how much you are willing to pay to not be sick. Unfortunately healthcare is not well regulated in the States (for now) which leads to us almost being held hostage with what we can do in Canada. 

 

Any way now we are really getting off track so i'll leave it there. 

Share this post


Link to post
Share on other sites

Even if you come from a money with family you would have to be crazy to turn down a LoC with the best interest rate you will ever get. You don't need it to pay for tuition? Great. From a business/personal investment stand point this LoC has some very good advantages. If you come from a family that has made a lot of money or have enough for you to do school, I suggest you talk to the family members that have been successful about the potential LoC you have access to and they will quickly steer you to getting it. 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

×
×
  • Create New...