Hypothetical Re: LOC

[Guest thelaze]

I was just wondering if it was at all possible to sing up for two LOC's at different banks. I know Scotia does a full credit check every year you're with them, so it wouldn't work with them. But if I signed up simultaneously with RBC and BMO for example, would I be able to get the full or near full $125,000 from both? Just curious about what seems like a possible loophole, but probably wouldn't work since the assessment for each LOC probably involves credit checks. Still, could I end up with more money in total by having two LOC's?

[Guest Ian Wong]

Nope. Theoretically, you aren't supposed to be able to do that, because they will check up on you.

 

Ian

[Guest bad hombre]

even if you were to get 2 loc's, maxing out both of them would kill you with all the interest you'd have to pay (12500 a year with 250000)

[Guest thelaze]

Yeah I didn't think it would be possible. It wouldn't really be smart of the banks to give you that much money without checking into who else you may owe money too.

 

bad hombre: the interest would certainly be a killer - but think of it this way, a lot of people would love to be able get a loan with as many perks as your typical med student LOC (such as low interest, etc) - doing things like buying a house with an LOC instead of a mortgage is just one of the many devious ways a student might use a loophole to their advantage (if it existed)

[Guest lcloh]

the banks check EVERYTHING on your credit history before extending you credit, so if you have a line of credit elsewhere registered in Canada it will show up on a credit report. so will any extra credcards, bad credit, missed payments, fraud alerts, etc. so make sure your credit report won't do you in if you're applying for an LOC.

 

i don't need to point out that since a LOC registered in Canada shows up on your credit report, a second LOC is impossible because the banks will pull up a credit check and be like.. "okay, you have an LOC with bank XYZ, why do you want one with bank ABC?"

[Guest UWOMED2005]

You might actually be able to do it for first year by applying simultaneously. Then you would have about $50k to play with, meaning you could pay your tuition/living-expenses AND buy a new set of shiny gold teeth to impress your classmates with.

 

Problem would be that when you went to get funding for 2nd year, both banks would do a credit check and you'd be found out. When all was said and done you'd probably be able to get more funding. . . but you'd only have $50k left and $75k to go (assuming 3 years left, each costing $25k + OSAP.)