Line of credit

[Guest solenoid25]

I've heard that once you're accepted to med school, it's very easy to get a line of credit, you just bring in your acceptance letter and you're set.

 

I was just looking at the RBC website, and I noticed that the $150000 line of credit is "subject to credit approval." Are we expected to have a stellar credit history, or have a co-signer? Has anyone here been approved for a line of credit without having a great credit history?

 

Thanks!

[Guest patentforamenovale]

I think as long as you have not declared bankruptcy in the past, or missed a lot of your payments, you should be ok. I personally did not own a credit card or pay any bills until a year ago, so I only had 1 year's worth of "history" for them to look at, and it worked out fine. At the maximum, you would expect clients with sub-par histories to have to pay more interest...Also, realize that this is a very competitive business, and there are at least three serious parties vying to make you their golden goose for life. So dont be afraid to haggle for better rates if you have to.

 

PFO

[Guest TimmyMax]

Hey,

 

I had a less-than-stellar credit history (no bankrupcy, though) and I got approved no problem! Don't take anything above prime and if a bank is giving you static, just go somewhere else- there are tons of banks dying to lend you money once you get into med, so it's really a buyer's market!

 

Best of luck!

Timmy

[Guest solenoid25]

Thanks for putting my mind at ease!

 

Now to wait for the acceptance letter....

[Guest grobz]

To continue with the financial questions, did anyone buy a home/condo in medical school without an actual income? Will the banks hook you up with a mortgage?

 

g

[Guest canmic]

The banks will only give you a mortgage if you have a way to pay it back. The student lines of credit are special because they don't require big payments before graduation.

 

That said, you could theoretically buy a house during clerkship or residency

[Guest trustwomen]

But if you do have an income (say, a combined income with your SO) do they give you better rates because they know that you will be a doctor someday?

[Guest Steve MD09]

I managed to get approved for a mortgage with no co-signer at an excellent interest rate (fixed at the then-current prime for 5 years) with an understanding that I would not be earning any significant income during medical school. However, I was working just prior to starting medical school, and my account manager required a letter of employment stating my income from that job to get me approved, even though he knew I was leaving the job in a few weeks. I think it was just a formality to put in my file and/or show his manager, and I suspect a letter of employment isn't absolutely necessary if the budgeting works out.

 

Unlike a line of credit, I think having a good credit history is probably quite important for getting a mortgage with no job or co-signer, although it's not that hard to earn one. Prior to medical school, I just had a credit card that I used here and there for small purchases for about 5 years, always paying my bills on time. Basically, if you have a good credit history, and if you can round up enough of a down payment that your mortgage payments are affordable within your budget, you should be able to convince a bank to approve you for a conventional mortgage (25%+ down payment). Getting a high-ratio mortgage (<25% down payment, requires mortgage insurance) would likely be much more difficult.

[Guest grobz]

Thanks Steve,

 

That is good news. My wife has been working as a college instructor for the last couple years, so we have a bit saved and a good credit history. I am tired of paying rent that disappears each month when I have friends that pay about the same for their condo that is appreciating in value, and they own it!

 

g

[Guest Adversary]

You can get $150,000 with no co-sign. Your acceptance into medicine (or dentistry) is enough. Currently, RBC and ScotiaBank are focusing on both professions. That's why there's these great benefits. If you need more (likely scenario for dental students), you will need a co-sign for the amount above 150K.

 

I do suggest you go with either one as both offers chequing accounts with NO FEES. I now withdraw money from the teller without paying a penny! As well, RBC offers 10 money orders a year which helps those situations where a certified cheque or money order is the only accepted currency (certain fees).

 

Finally, for the superficial, you get your gold or platinum credit card with limits up to $15,000.

 

Trust me, get yourself into medical school first. Money is available to help you get through. Remember, your future bank account is worth A LOT to the banks. That's what they are banking on. Plus, you're a SAFE bet. They know you will pay them back and potentially stick around.

 

If you want to ask me more questions about LOC, private message me. I did research into all the banks for my sister (Medicine) and I (Dentistry).