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Getting 2 lines of credit on the same day.


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I'm a second year medical student who is looking for some first/second/third hand information! I went to a couple banks today to ask about student lines of credit and they were practically jumping out of their seats to sign me up for 350k each. I seem to remember this being talked about somewhere on the form, but I can't remember. Anyway, what's stopping me from going in one day and snagging 2 lines of credit on the same day? When you have this much money on hand, why not go big in Vegas!?? 

OR buy a rental property. It looks like mortage rates are lower than LOC rates? Has anyone on here used their lines of credit to buy a rental property? 

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22 minutes ago, Meridian said:

They do talk -  and you would be committing fraud by not disclosing the first line of credit when applying for the second.

Yes some students do use their LOC for buying property or investing.   Most need it for what it is intended for to pay for your education though.

I know of some who ended up south of the border for medical school, and did exactly this - get two LOCs approved on the same day. Definitely don't reccomend that, and the inherent risk involved with overleveraging and relying on funding that may very well be pulled, but it has happened before without much consequence. 

This is a diff scenario though, where they definitely do not need 2 lOCS.

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15 hours ago, ThatCanadianGuy said:

I'm a second year medical student who is looking for some first/second/third hand information! I went to a couple banks today to ask about student lines of credit and they were practically jumping out of their seats to sign me up for 350k each. I seem to remember this being talked about somewhere on the form, but I can't remember. Anyway, what's stopping me from going in one day and snagging 2 lines of credit on the same day? When you have this much money on hand, why not go big in Vegas!?? 

OR buy a rental property. It looks like mortage rates are lower than LOC rates? Has anyone on here used their lines of credit to buy a rental property? 

I think getting two LOCs constitutes fraud and they can pull both of the LOCs if either bank finds out. But I'm pretty sure they'd only find it if they have a reason to investigate/audit you so you're taking a chance. As for using the LOC for other purposes, yes I invested it into a plot of land with my brother (who also had an LOC). I know a few classmates who bought a condo in Toronto (back in the day before it was at these high prices) and they've made a significant profit. If you have the means to invest the LOC, by all means do it. The rate is lower than a regular LOC and its unsecured. One of the upper years invested it into a bunch of subway franchises (with two other people) and they made a ton of money. So look into your options and see whats best for you. 

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I think everyone here is giving the right idea :)

First they entire point of credit checks is to block this - and they have become increasingly good at doing it actually to prevent 

Next they do check as you go along to make sure this doesn't happen - a part of the yearly checks basically (well at least two banks do that so I am assuming they all do).

They could in theory revoke both if they they find out - that doesn't sounds good ha. 

Mortgage rates are quite often below the LOC rates - that is usual. Right now I can get mortgage rates that are quite a bit lower than the LOC (particularly their variable rates).

It is possible to get a LOC and mortgage mind you - that gives you basically access to the same level of credit as two LOCs, often has a lower rate again, and is structured - the risk with the LOC is that rates might rise. Not good if you are still 7--10 years away from practicing. 

That being said I have did buy investment property as a med student/ early resident - and if you do it correctly it can turn a profit of course. The real estate market risk now has had a long run of increases - no recession and low interest rates. It isn't a risk free investment (buy low, sell high.......)

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I thought about investing in property with my LOC but in the end the risks vs. rewards just didn't pan out for me. There's more than enough stress to deal with in medical school - why complicate it further with a financial component that may actually cost you money if the markets go down. Further, do you really want to tie yourself geographically with property at a time when your location may drastically change in 2 years despite your choice?

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