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

LOC Declined

Recommended Posts

My application for a LOC through Scotiabank was declined, and I'm very worried that I may not be able to afford med school now. They state that the reason for decline was "due to slow repayment history".

 

I've completed three degree's and I don't think I qualify for any additional student loans. I'm in a really difficult spot now. I've already accepted the invitation to med and gave notice to my employers. So, in one month I'll have no income and no way to pay the bills.

 

I suppose I could try another bank, but I think once you've been declined from one of them they all follow suit?

 

Feeling very down and desperate at the moment. Without that LOC I'm screwed.

Share this post


Link to post
Share on other sites
Try another bank. RBC should hook you up. Push hard for it and be professional. Try every bank if you have to.

 

Hopefully so!

 

I have seen this before twice now - some sort of bad credit history and then you don't get the loan. In both cases initially the LOC was declined but the person worked very hard to correct the problems and by year two did get the LOC restored.

 

Do you know your credit history/credit report? What is the issue? Slow repayment is a bit vague. Is it fixable?

 

There are ways around this and kick until you get to daylight - going to another bank may work although I haven't seen it yet. There are potentially options with co-signers, bursaries, are you sure you have exhausted provincial loans?..... It is never easy but it is possible.

Share this post


Link to post
Share on other sites

A co-signer is not an option for me. I don't know anyone who would do it for me.

 

I'm not sure why they came to that conclusion; I'll have to pull a credit report to find out. I don't have much of a credit rating at all, as I have only one small credit card. I was in school for many years, and only got my career going in the last year or so. Being accepted for med was a bit of a surprise, I assumed the LOC wouldn't be an issue for med students, unfortunately that's not the case.

 

I don't see how I can fix my credit rating since I am now unemployed. In 30 days it's going to get really bad. Bursaries and student loans might be an option, but it's going to take time and it might not be enough. Too little, too late.

 

I could try TD as you suggest, that would be a big help if I could get part of it. I'll try other banks as well.

Share this post


Link to post
Share on other sites
A co-signer is not an option for me. I don't know anyone who would do it for me.

 

I'm not sure why they came to that conclusion; I'll have to pull a credit report to find out. I don't have much of a credit rating at all, as I have only one small credit card. I was in school for many years, and only got my career going in the last year or so. Being accepted for med was a bit of a surprise, I assumed the LOC wouldn't be an issue for med students, unfortunately that's not the case.

 

I don't see how I can fix my credit rating since I am now unemployed. In 30 days it's going to get really bad. Bursaries and student loans might be an option, but it's going to take time and it might not be enough. Too little, too late.

 

I could try TD as you suggest, that would be a big help if I could get part of it. I'll try other banks as well.

 

ok you can get your credit report online in very short order - that will will tell you what the issue is. Something is going on here, and you need to be armed with that information. You must have a credit rating (the amount of credit you have is not the issue - it how it was used). The cost to get one is about 20 dollars. It is even possible there has been a mistake on it. (a place like transunion or equifax are the places to start to get it).

 

Until you have that you are guessing and going to bank to bank without that is probably not very effective. If I were you I would get that with your credit score immediately.

 

Even if you get the LOC often you don't get it for a bit closer to the start of school so you may have to be careful there as well - but that is a smaller problem.

Share this post


Link to post
Share on other sites

and don't give up hope at this point - you are not down and out yet. Which school did you match too?

 

It wasn't easy but we were able to figure this out in the other case I ran into - problems like this was why I started broadcasting credit warnings in the fall on the forum - things are getting a bit trickier with credit and banks are naturally risk adverse.

Share this post


Link to post
Share on other sites

I wouldn't get discouraged. Make some appointments with other advisors at banks that really know what they are talking about. Don't waste your time talking to people who haven't dealt with this kind of loan (I've learned from experience).

 

Also, contact the school and see if you can set up a time to talk to the school advisors - they may be able to suggest some options.

 

Is there a way to extend your work? Why are you done in 30 days?

Share this post


Link to post
Share on other sites

This is my greatest fear! I had my identity stolen a few years ago and even now I have some things on my credit file that shouldn't be there (creditors trying to collect on loans she took out in my name).

 

It's always a good idea to keep an eye on your credit rating - this way, you are armed and informed when it comes to getting a loan, and also you won't be blindsided if something fishy happens.

 

Still, though, even without that, I'm pretty nervous. How bad is 'bad' credit??

Share this post


Link to post
Share on other sites
This is my greatest fear! I had my identity stolen a few years ago and even now I have some things on my credit file that shouldn't be there (creditors trying to collect on loans she took out in my name).

 

It's always a good idea to keep an eye on your credit rating - this way, you are armed and informed when it comes to getting a loan, and also you won't be blindsided if something fishy happens.

 

Still, though, even without that, I'm pretty nervous. How bad is 'bad' credit??

 

cannot you get that removed? that is exactly the sort of stuff you need to purge off of there.

 

Hard to say how bad things need to be before they get worried. Bottom line is not a good idea to be default on anything or be regularly late with payments to play it safe.

Share this post


Link to post
Share on other sites

this is pretty interesting. I had just assumed that with a med school enrollment you'd be automatically qualified for a LOC in Canada even if one had a bad credit history.

 

The risk is relatively low for a medical student even with a $250K LOC vs a law student or pretty much any other type of student. Hell, even a lot of people I know who got mortgages who, in my eyes, really shouldn't have are a higher risk than a med student save for exception of having the house/property should default occur though banks aren't interested in being house owners...

Share this post


Link to post
Share on other sites
this is pretty interesting. I had just assumed that with a med school enrollment you'd be automatically qualified for a LOC in Canada even if one had a bad credit history.

 

The risk is relatively low for a medical student even with a $250K LOC vs a law student or pretty much any other type of student. Hell, even a lot of people I know who got mortgages who, in my eyes, really shouldn't have are a higher risk than a med student save for exception of having the house/property should default occur though banks aren't interested in being house owners...

 

My husband and I were actually shocked at how high a mortgage the banks were willing to give us! :eek: We knew very well that we wouldn't be able to afford a house that was that expensive. So we stayed within our means and bought a house that provided us with a mortgage that has monthly payments significantly less than what we would be paying in rent.

Share this post


Link to post
Share on other sites
cannot you get that removed? that is exactly the sort of stuff you need to purge off of there.

 

I went through the process of getting all the fraudulent entries removed last summer when I found out. But it's not a perfect system (the collection agencies don't care about you and neither do the credit bureaus) and the onus is on you to make sure everything gets cleared. Despite spending about 40 hours of my life dealing with this last summer there are still pending items to be removed.

Share this post


Link to post
Share on other sites
this is pretty interesting. I had just assumed that with a med school enrollment you'd be automatically qualified for a LOC in Canada even if one had a bad credit history.

 

The risk is relatively low for a medical student even with a $250K LOC vs a law student or pretty much any other type of student. Hell, even a lot of people I know who got mortgages who, in my eyes, really shouldn't have are a higher risk than a med student save for exception of having the house/property should default occur though banks aren't interested in being house owners...

 

yeah not so anymore - the risk may be low but the profit is also extremely low Banks make virtually no money, if they don't lose it, on LOC - the rate is low as it comes, and when you factor in the staff, operating costs, and the rare default....

 

They are after future business I think where they will make a much larger profit.

Share this post


Link to post
Share on other sites
I went through the process of getting all the fraudulent entries removed last summer when I found out. But it's not a perfect system (the collection agencies don't care about you and neither do the credit bureaus) and the onus is on you to make sure everything gets cleared. Despite spending about 40 hours of my life dealing with this last summer there are still pending items to be removed.

 

annoying, glad you are dealing with it though and I hope all that gets cleared!

Share this post


Link to post
Share on other sites

To add to what rmorelan has said, if a med student defaults on their LOC the bank is out the money (no cosigner). If someone defaults on a mortgage, the bank will take the house and sell it, recouping some of their loses. Can't really compare a mortgage to a student LOC in terms of risk.

 

I definitely agree that the banks are interested in med students because of future business.

Share this post


Link to post
Share on other sites

I matched to UCalgary, so I will start in July. My last job will end in early July, so I’ll have a small amount of money trickling in, but that will be it.

 

So I pulled my credit bureau and found the problem and it’s so minor I don’t even know how to fix it. I have pre-2000 government student loans that were managed through the banks at that time, and post-2000 loans that were processed through Edulinx and NSLSC. They’ve been in payment free status for a while since I went back to school, but for a one year period they went into payment status.

 

The Edulinx and NSLSC loans show that they have always been in good standing. However, the pre-2000 government loans (managed at the bank) show a 3 month period where they were late two years ago. After that they were paid on time and then early this year they were finally merged into Edulinx and NSLSC, so they now show as paid in full and the account in good status.

 

I had to wrack my brain to figure out why they were late a couple months 2 years ago, and I think it was due to some confusion after Christmas as to when they were in payment status. It was all resolved in short order so I can’t figure out why it is hurting me so badly. I would have thought that having them paid on time for 1.5 years after that, and then paid in full and closed would illustrate that they are in good standing. What on earth can I do about this?

:confused:

Share this post


Link to post
Share on other sites

Ask to meet with an advisor well versed in Medical School Line of Credits. Let them know of this up front. If you are again rejected right off the bat, see if there is a manager you could talk to or some what of sorting this all out.

 

If you don't have a crazy amount of loans outstanding, you should be OK. Start calling around today though. It takes some time to get the loan in order and available to you.

Share this post


Link to post
Share on other sites

missmath:

I applied to BMO because I've had a chequing account with them for years. I had a pretty good chat with the rep today, and he's saying that it doesn't look like a big issue. He was very friendly and understanding. He can't approve it automatically, but he's sending to the bank-gods and they will review it. It sounded optimistic, but I won't know until Tuesday.

 

The Scotia rep did say he would appeal the decline, but didn't think it would help. I emailed him yesterday to ask for clarity and they are not responding to my email. (edit: I'm also not sure why Scotia's and BMO's responses are so different, why is Scotia so negative about appealing but BMO so helpful, weird)

 

I don't want to contact too many banks because each rejection goes on the credit bureau and then it looks worse.

Share this post


Link to post
Share on other sites
I had a few late payments (weren't my fault, I explained the situation) but they even told me that it is the norm to have a co-signer and that very few cases can get a loan without a co-signer.

 

Which bank told you it was a norm to have a cosigner? They may not have understood the process for a professional student line for medical school. I have a few people tell me that "almost everyone needs a cosigner" but this is simply NOT THE CASE for a med LOC. I've been approved, no cosigner, and little capital (Scotiabank). That being said, I have quite of few years of good credit built up.

 

It's really all about talking to the right people.

Share this post


Link to post
Share on other sites
Which bank told you it was a norm to have a cosigner? They may not have understood the process for a professional student line for medical school. I have a few people tell me that "almost everyone needs a cosigner" but this is simply NOT THE CASE for a med LOC. I've been approved, no cosigner, and little capital (Scotiabank). That being said, I have quite of few years of good credit built up.

 

It's really all about talking to the right people.

 

I explained this to the RBC rep but it seems like med LOC is a new phenomenon.

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...