Lines of Credit for Medical Students (Scotia is the best option)

[rmorelan]

Ahhh. Perhaps I just have trouble trusting advisors without doing my own research first. Usually if something seems too good to be true, it probably is.

 

I guess I am also suspicious because if it was reasonable for CIBC to offer prime-0.25%, why would other banks not match the rate to keep their customers? I suppose the premium credit cards and other perks would play a role?

 

those perks in the end are nothing compared to the prime rate - they are probably trying to gain market share somehow in particular areas. 

 

A quarter point drop in rate like that for many people is 500 dollars a year. With that savings worst case you could walk over to any other bank and pay for their premium whatever card, pocket the difference, and use that card for all the benefits etc. Most of the time the top of the line cards are only about a 100 a year anyway - assuming you cannot do some sort of deal to even drop if further, which honestly would be strange . 

 

people love perks etc but when you do the math and have some flexibility like above you have to wonder if they are worth focusing on. Particular since in the end you have to actually pay for them ha (the idea of paying 100 dollars a year to get a card that charged 20% interest a year if for so some silly reason you left a balance on it strikes me as just painful. Credit card companies are a strange system - the really don't add anything to the economy but their presence increases the cost of all goods whether you use them are not, and they make money on the front and backend. I think if I didn't own stock in them I would actually be mad).

Edited September 5, 2016 by rmorelan

[PurpleS]

For people who switched, what did you do with you premium card from the old bank? Do you have to pay the credit card fees annually or did you close the account? Does closing the accounts hit your credit rating? - I vaguely recall you can transfer the credit between banks if it's the same credit company.

[rmorelan]

For people who switched, what did you do with you premium card from the old bank? Do you have to pay the credit card fees annually or did you close the account? Does closing the accounts hit your credit rating? - I vaguely recall you can transfer the credit between banks if it's the same credit company.

 

i will add this one point - don't worry about the credit rating much. Seriously. The rules about credit don't apply to med/dent students - we have loans/mortgages/credit cards/etc that make no sense based on that. Even if the rules did apply it still won't matter as by the time you are done both medical school and residency the effect would also be gone, and minimal in any case. 

[shady]

For people who switched, what did you do with you premium card from the old bank? Do you have to pay the credit card fees annually or did you close the account? Does closing the accounts hit your credit rating? - I vaguely recall you can transfer the credit between banks if it's the same credit company.

 

Closed them. I've always closed unused credit cards. Better a small temp hit than a long-term headache. I mean, we have to close those cards at some point - surely we don't expect to have them for the rest of our lives. So I never worry about closing credit cards

[rmorelan]

Closed them. I've always closed unused credit cards. Better a small temp hit than a long-term headache. I mean, we have to close those cards at some point - surely we don't expect to have them for the rest of our lives. So I never worry about closing credit cards

 

any particularly reason why at some point in the future you would close your LOC bank cards (assuming you stay at that bank ha)? I mean most of the time there isn't another higher level card to jump to, and the credit limits are adjustable if needed. I must be missing something

 

and again meh on the credit score hit if any - we have unrestricted access to so much credit worry about the score seems pointless. 

[shady]

any particularly reason why at some point in the future you would close your LOC bank cards (assuming you stay at that bank ha)? I mean most of the time there isn't another higher level card to jump to, and the credit limits are adjustable if needed. I must be missing something

 

and again meh on the credit score hit if any - we have unrestricted access to so much credit worry about the score seems pointless.

In this case I switched LOC banks, so I closed the credit card from the old bank and opened one with the new bank.

 

My answer was meant to be a more general one. As in, if I have a credit card that I don't use and that I don't need, I prefer to close it. Factors like the temp credit hit or the decrease in average account age are things that are secondary imo and I don't pay very much attention to them. They have little long term impact

[rmorelan]

In this case I switched LOC banks, so I closed the credit card from the old bank and opened one with the new bank.

 

My answer was meant to be a more general one. As in, if I have a credit card that I don't use and that I don't need, I prefer to close it. Factors like the temp credit hit or the decrease in average account age are things that are secondary imo and I don't pay very much attention to them. They have little long term impact

 

makes sense

[PurpleS]

The adviser did mention that the only reason your interest rate for the LOC would go above prime would be if your credit score took a significant hit. What kind of things typically wreck your credit score?

[rmorelan]

The adviser did mention that the only reason your interest rate for the LOC would go above prime would be if your credit score took a significant hit. What kind of things typically wreck your credit score?

 

well for us that is very rare but if you exceed the LOC amount and cannot make payments as a result, same with CC cards. That can lead to failing to make car/bill payments all of which will smack your credit around a bit.

 

If you marry a spouse with bad credit you can get cross over etc. I am excluding the case where you already have bad credit ha - bankruptcy etc.

Edited September 7, 2016 by rmorelan

[thestar10]

On the point of credit cards, one credit card that people may want to add to their wallet is the Amazon rewards Visa card. Med students tend to travel and this CC has no foreign exchange fee and gives 1% rewards. It's the CC I use while out of country. It's actually the best "travel card" I've been able to find. I use my actual travel CC for my flights etc but this card for the purchases I make out of country.

[Bambi]

Can confirm CIBC at ubc is offering prime -0.25%. I'll check whether it's during the whole term of school and residency.

 

It is also during residency and beyond, if you don't allow the bank to close the LOC and convert it to a professional LOC. This offer ends in two days.

[NeuroD]

Update for those new seekers + those like rmorlean who made predictions....TD and Scotia have begun to bend to the prime minus game!

[TechToMD]

Who do I talk to at TD and/or Scotia to get an LOC below prime and what rate can I expect?

 

You can PM me if you prefer. Thanks.

[rmorelan]

Update for those new seekers + those like rmorlean who made predictions....TD and Scotia have begun to bend to the prime minus game!

 

ha

 

there were whispers in the dark about that a couple of months ago - exciting change. Once one bank anywhere drops something there usually is a ripple effect.

[locplease1]

Hi I am also a first year medical student. If someone knows an advisor I can talk to for an LOC below prime at Scotia or TD, please also PM me!

[HiHopes]

I had an appointment with Scotia rep in Calgary last week. No prime minus here (yet). Do you guys think that there is a way to negotiate that?

[GTA Med Advisor]

Feel free to get in touch with me to discuss what we can do at Scotiabank, my contact details are below.

[JohnGrisham]

I had an appointment with Scotia rep in Calgary last week. No prime minus here (yet). Do you guys think that there is a way to negotiate that?

Other scotia banks on the west coast have caved and are doing prime minus. May be advisor dependent? 

[NeuroD]

Other scotia banks on the west coast have caved and are doing prime minus. May be advisor dependent? 

It's usually higher up than the advisor, they can't make that call. At least branch/regional.

[codebar]

When are we supposed to pay back the LOC at Scotia?

I just spoke with my adviser and he said that the maximum he can do is 3 year post-graduate before having to pay back. So I would need to start paying back my LOC during my 4th year of residency !

 

Can someone back me on this?

[rmorelan]

When are we supposed to pay back the LOC at Scotia?

I just spoke with my adviser and he said that the maximum he can do is 3 year post-graduate before having to pay back. So I would need to start paying back my LOC during my 4th year of residency !

 

Can someone back me on this?

 

errr no. 

 

Speaking as a FOURTH year (almost 5th) resident still not paying it back. The default is one year post fellowships (or if you don't do those then one year post residency). 

[rmorelan]

It's usually higher up than the advisor, they can't make that call. At least branch/regional.

 

yeah it is higher up the food chain for sure. 

[ScotiabankMedsAdvisor]

When are we supposed to pay back the LOC at Scotia?

I just spoke with my adviser and he said that the maximum he can do is 3 year post-graduate before having to pay back. So I would need to start paying back my LOC during my 4th year of residency !

 

Can someone back me on this?

[ScotiabankMedsAdvisor]

This is incorrect you should continue to have complete access to your line of credit for residency/fellowship without principal payments. Within the year after completion of residency/fellowship you can convert your student line of credit to a professional line of credit. This remains in a revolving product so even though you will have minimum deposit requirement you can reborrow if needed.

[Leon]

Just an FYI. New students are being offered locs at prime minus a quarter by some banks. My Scotiabank advisor is trying have this deal applied to me despite me being a fourth year student. If you're interested you may want to explore this option as it can save hundreds per year in interest depending on your outstanding loc. In my case they are attempting to have the interest rate dropped from 2.7 to 2.45%