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

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2 minutes ago, jumbocup said:

I've just been informed by my Scotiabank advisor in Vancouver that in order to secure the LOC, I must obtain letters from CIBC and BMO confirming that I am not seeking LOC products from their institutions. Additionally, I have to close all of my existing, non-Scotiabank credit products in order to gain access to my LOC, even if those other credit products have been paid in full with no outstanding balances. This is a tad annoying as some of my rewards points with these other providers are contingent on having an active product.... I'm not willing to forfeit all of these points to open up an LOC. 

Can someone confirm that this is indeed the case? I was not informed of this in my initial communications with Cindy (the BC SPSP rep). 

Aside, some more details about the RBC offer for those who are still weighing their options:

The condition for the iPad is that the individual must open the account by August 31, 2018 and setup either a pre-authorized payment (PAP) OR a direct deposit. You need 2 PAP payments or 1 direct deposit by November 30, 2018 to qualify for the iPad. PAP can include things like gym membership deductions, cellphone bills - basically anything that auto-pulls from your bank account. 

you know I am always surprised by the various takes of different loan providers even though most of this is centralized.

I mean as an example myself, and many others I know, continue to have credit products at other institutions despite having an LOC at a different place - that includes scotia, with the only entirely fair caveat that your total credit everywhere cannot be more than standard total amount. I have a only small personal LOC at another bank that I don't use but kept open as an emergency and my primary LOC is just reduced a corresponding amount. 

In your case you can probably push back a bit because you have a good reason for not closing them,  and others have managed to make alternative arrangements. They want to use thousands in long term business over something like this? 

Plus why on earth would another bank provide something someone is not doing something at their bank - what on earth would be there motivation for doing that? Even if they did what is stopping you from seeking an LOC immediately after? People can move at any time so the request makes absolutely no sense. 

This ipad is kind of interesting - ha, they are starting to play hard ball - have to wonder if it is at least in part a response to the scotia's big moves in the market.

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15 minutes ago, jumbocup said:

I've just been informed by my Scotiabank advisor in Vancouver that in order to secure the LOC, I must obtain letters from CIBC and BMO confirming that I am not seeking LOC products from their institutions. Additionally, I have to close all of my existing, non-Scotiabank credit products in order to gain access to my LOC, even if those other credit products have been paid in full with no outstanding balances. The only way around this is to declare the credit, apply for exception, and have your LOC limit reduced by the credit limits for each respective card i.e. if you have a TD CC with an $8000 limit, your $275K loan limit would be limited to $267K.

 This is a tad annoying as some of my rewards points with these other providers are contingent on having an active product.... I'm not willing to forfeit all of these points to open up an LOC. I think.

Can anyone confirm that this is indeed the case? I was not informed of this in my initial communications with Cindy (the BC SPSP rep). 

Aside, some more details about the RBC offer for those who are still weighing their options:

The condition for the iPad is that the individual must open the account by August 31, 2018 and setup either a pre-authorized payment (PAP) OR a direct deposit. You need 2 PAP payments or 1 direct deposit by November 30, 2018 to qualify for the iPad. PAP can include things like gym membership deductions, cellphone bills - basically anything that auto-pulls from your bank account. 

BS, especially getting letters from the other banks, haha. Also, you don't need to close non-Scotia credit cards BUT you're total revolving credit can only add up to 15k (so if you've got 5k somewhere else, they can only give you 10 between your cards).

My suggestion would be to just get another rep (even if you can't meet them in person) who gives you the best deal upfront without having to haggle. If this guy is a hassle before you're his customer, I'm worried about how he'll be after you've signed. I recently helped a UBC student connect with my rep (who I'm very partial too) even those she's across the country. PM me if you're interested.

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4 minutes ago, PhD2MD said:

BS, especially getting letters from the other banks, haha. Also, you don't need to close non-Scotia credit cards BUT you're total revolving credit can only add up to 15k (so if you've got 5k somewhere else, they can only give you 10 between your cards).

My suggestion would be to just get another rep (even if you can't meet them in person) who gives you the best deal upfront without having to haggle. If this guy is a hassle before you're his customer, I'm worried about how he'll be after you've signed. I recently helped a UBC student connect with my rep (who I'm very partial too) even those she's across the country. PM me if you're interested.

PM'd - thanks!

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13 minutes ago, PhD2MD said:

BS, especially getting letters from the other banks, haha. Also, you don't need to close non-Scotia credit cards BUT you're total revolving credit can only add up to 15k (so if you've got 5k somewhere else, they can only give you 10 between your cards).

My suggestion would be to just get another rep (even if you can't meet them in person) who gives you the best deal upfront without having to haggle. If this guy is a hassle before you're his customer, I'm worried about how he'll be after you've signed. I recently helped a UBC student connect with my rep (who I'm very partial too) even those she's across the country. PM me if you're interested.

Some of this is correct.  As of today any outside credit cards have to be closed to obtain the max line of credit.  If you want to keep them open that is fine as well but it reduces the maximum line of credit limit by the limits you keep open.  Stay tuned as this is another small tweak coming with the changes.  I would just keep the cards open and reduce your limit and have the advisor do an amendment once the changes are made.

With  respect to the letters from CIBC and BMO the only thing I can think of is that you did an application with them recently.  There are people out there that trick the system and get more than one line so this may be a precaution being taken by the underwriter as they can see another credit check.  I personally have done hundreds of professional lines however and have never seen that condition.

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2 hours ago, jumbocup said:

I've just been informed by my Scotiabank advisor in Vancouver that in order to secure the LOC, I must obtain letters from CIBC and BMO confirming that I am not seeking LOC products from their institutions. Additionally, I have to close all of my existing, non-Scotiabank credit products in order to gain access to my LOC, even if those other credit products have been paid in full with no outstanding balances. The only way around this is to declare the credit, apply for exception, and have your LOC limit reduced by the credit limits for each respective card i.e. if you have a TD CC with an $8000 limit, your $275K loan limit would be limited to $267K.

This is a tad annoying as some of my rewards points with these other providers are contingent on having an active product.... I'm not willing to forfeit all of these points to open up an LOC. I think.

Can anyone confirm that this is indeed the case? I was not informed of this in my initial communications with Cindy (the BC SPSP rep). 

Aside, some more details about the RBC offer for those who are still weighing their options:

The condition for the iPad is that the individual must open the account by August 31, 2018 and setup either a pre-authorized payment (PAP) OR a direct deposit. You need 2 PAP payments or 1 direct deposit by November 30, 2018 to qualify for the iPad. PAP can include things like gym membership deductions, cellphone bills - basically anything that auto-pulls from your bank account. 

You don't have to close your other banks' credit cards nor LOC, but it reduces the maximum amount of LOC you could get with Scotiabank (275 k to 270 k for example) 

I personally closed all my other bank accounts' credit cards, because Scotiabank's Infinite Momentum and Visa Infinite Cards are much better than the other banks' offers. I was with BMO, HSBC before and did not hesitate a second to close my credit cards and personal accounts with them. I was not offered any deals not treated differently, BMO and HSBC definitely did not try to retain me lol 

Not all banks are used to deal with MD customers, Scotiabank and RBC are two well-known banks that offer good-tailored services. I would have switched much earlier if I had the financial acumen during medical school. Just two my cents :)

 

 

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20 hours ago, xiphoid said:

I was told by Veena also at a downtown Toronto RBC branch that the iPad promotion is this year, and the promotion was an Apple Watch last year.

 

18 hours ago, SunAndMoon said:

BS - the iPad is this year. I'm getting increasingly frustrated with reps being either ignorant or blatantly lying to customers

yeah I think I'm going to have to speak to another advisor, I just want to make sure everything is on the table before I sign up for their line of credit. 

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17 minutes ago, runridge said:

So, is the main difference between RBC and Scotia the iPad and credit cards? I’m not seeing any real differences in the packages I was given from both. 

they are at war in a since with each other competition wise so don't expect radical difference on paper at least. You have to see if you can work with each particular advisor you are dealing with, and see how each one is treating your school each. There are a lot of things the advisers can do that aren't reflected long term in the basic numbers. 

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11 minutes ago, rmorelan said:

they are at war in a since with each other competition wise so don't expect radical difference on paper at least. You have to see if you can work with each particular advisor you are dealing with, and see how each one is treating your school each. There are a lot of things the advisers can do that aren't reflected long term in the basic numbers. 

Totally agree - a good relationship with an advisor who is willing to work with you is so much more important in the long run.. though I wouldn't mind a free ipad :P 

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12 minutes ago, la marzocco said:

Totally agree - a good relationship with an advisor who is willing to work with you is so much more important in the long run.. though I wouldn't mind a free ipad :P 

....and they know that ha. Marketing in action :) 

I am curious what the strings are - I mean usually you can leave at any time to another bank. Is there some limitation now? 

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32 minutes ago, rmorelan said:

....and they know that ha. Marketing in action :) 

I am curious what the strings are - I mean usually you can leave at any time to another bank. Is there some limitation now? 

You have to set-up some pre-authorized payments and make at least 2 of those before a certain date, from what I remember from another thread.

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14 minutes ago, Snowmen said:

You have to set-up some pre-authorized payments and make at least 2 of those before a certain date, from what I remember from another thread.

.....so? I mean that isn't hard :) I guess they are assuming some inertia here.   

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I'm pretty much ready to sign my agreement at Scotia and just heard about this iPad incentive...seems like Scotia and RBC are almost identical now with respect to what they offer, with the iPad being the only real difference. 

I like RBC and I was planning on buying that same iPad out of pocket anyways, does anyone know if Scotia is offering anything similar to this? Or any other incentives? Wondering if I went with Scotia too early...! 

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10 minutes ago, la marzocco said:

Boo so not the IPad Pro? 

ha :)

you are likely in jest but seriously it is amazing how quickly people adapt to whatever they throw at you. I really, really don't envy being a banker in this game. 

"it's not a scene, it's an arms race......."

I guess technically you get your knapnacks now from Scotia?

Edited by rmorelan

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6 minutes ago, Eudaimonia said:

Ha can you imagine if they started offering that to clients only as part of the deal :eek:

ha I doubt it :)  but on some level they must be think at least give us some respect for the bags here people.  

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31 minutes ago, rmorelan said:

ha I doubt it :)  but on some level they must be think at least give us some respect for the bags here people.  

nah I think that is a responsibility they took on themselves when they acquired MDFinancial :P

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Something that I don’t hear being considered when talking about closing or keeping other CCs is that age of account means something to your credit score. 

I took the $1000 hit on my LOC to hold on to my first cc’s long and pristine history. Hopefully that means something in the future when looking for other banking products

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6 hours ago, LostLamb said:

Something that I don’t hear being considered when talking about closing or keeping other CCs is that age of account means something to your credit score. 

I took the $1000 hit on my LOC to hold on to my first cc’s long and pristine history. Hopefully that means something in the future when looking for other banking products

I considered this but still decided to close my first cc as it was a short history anyways. Dealing with these finances is already overwhelming enough without having to keep track of an extra card, even if it's no fee. Also the benefit of my score being one year older shouldn't matter too much when it only accounts for about 15% of your score. 

To my understanding, good credit stays on your record for 7 years? I haven't figured out what the impact of this close will be on my score yet, if it goes back to no credit. I can't even forsee what I'll need excellent credit in the future for yet. 

Anyone know if there's a fee to convert our LOCs after graduation into a professional LOC? How long can we keep that LOC (which keep our CCs at no fee)?

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Questions:

I'm going to a school far from me (different province). Can I talk to an advisor in my home town about getting the LOC now, or do I have to wait until I move to the other city?

Is it necessary or a good idea to bring a parent with me? Or is it relatively simple enough for a moderately financially knowledgeable pre-med to do on their own?

Which RBC specialists are highly recommended in Toronto?

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4 minutes ago, canada747 said:

Questions:

I'm going to a school far from me (different province). Can I talk to an advisor in my home town about getting the LOC now, or do I have to wait until I move to the other city?

Is it necessary or a good idea to bring a parent with me? Or is it relatively simple enough for a moderately financially knowledgeable pre-med to do on their own?

Which RBC specialists are highly recommended in Toronto?

you can do whatever you fell comfortable with! They are more than capable of doing either way

It is pretty simple but again that boils done to comfort level - and there is absolutely nothing wrong with getting whatever whenever form of help you need as long as you are learning through the process :)

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I contacted RBC and scotiabank recently and this is a comparison:

1. Credit cards annual fee: both top of the line cards, mostly similar/comparable perks with Scotia having slight upper hand. Difference: RBC offered to waive annual fees for 4 years, Scotia for 4 years + residency + 2 year grace period. That, if RBC does not budge, is a ~$1000 difference (if residency = 5 years, annual fee $120-135).

2. Credit cards welcoming points: RBC gives 30,000 with no strings attached (up to $700 value). Scotia bank gives $250 equivalent if you spend $1000 in first 90 days. That's a +$500 for RBC.

3. iPad/points: RBC is offering the new iPad (with student discount and taxes in costs a little under $500) to NEW clients. It is essentially a perk for new customers opening the VIP banking account, not specific to MD students. It has strings attached, preauthorized payment etc. Easy to fulfill conditions for most of us. Edit: [not confirmed] actually, during the summer months, with similar conditions, at Scotiabank you get 10,000 rewards points or scene points, which would be $100 and 10 movies (~$130) respectively.

4. Banking account: unlimited transactions + unlimited e transfers from RBC. unlimited transactions + 2 free e transfers/month from Scotiabank. Again, however, RBC is waiving monthly fees for 4 years of MD, Scotiabank for MD+res+2 years grace period. Another $1000 difference.

 

Summary:

RBC: +$500 (iPad) +$500 (diff in welcoming points)

Scotiabank: +$1000 (saved in credit card annual fees) + $1000 (saved in bank account fees) + [not confirmed] $100 (rewards or scene points) 

All of these are upfront offers. I'm going to negotiate with both.

Edited by beepboopbot
clarity and accuracy

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