dentss Posted July 14, 2011 Report Share Posted July 14, 2011 i had a quick question regarding my loc situation and was wondering if someone could offer advice... i approached the Scotiabank advisor a couple of days ago and got verbal information on the terms of the line of credit (such as maximum they would be willing to give, interest rate e.t.c) as well as got an application form. The advisor has asked me to fill out the application and submit it...however, i was wondering if it would be advisable to first ask her to see the written terms before sending in my application? or would i have to submit my application before they can draft the terms...when i initially got the application, i thought major details such as the maximum available amount for 4 yrs and interest would be written on the application form but apparently they are not...any help is appreciated! thanks! Link to comment Share on other sites More sharing options...
DocT7 Posted July 14, 2011 Report Share Posted July 14, 2011 I also dealt with Scotiabank for my LOC. I filled out the application form, and then after it was submitted & approved, they draft your contract (which has the terms etc), so filling out the application form does not mean you are agreeing to anything just yet. Link to comment Share on other sites More sharing options...
Mourning Cloak Posted July 14, 2011 Report Share Posted July 14, 2011 Whatever you decide to do, remember: Every time a bank does a credit check, your credit line takes a hit. Link to comment Share on other sites More sharing options...
dentss Posted July 14, 2011 Author Report Share Posted July 14, 2011 thanks for the replies! yes, i will be attending a Canadian school...she provided me with the details with numbers but nothing written...so it'd be reasonable to ask her to send me the written details?...my only concern is that after i get approved, she has different written terms than what we discussed and i dont want to end up having to negotiate again (if that is even possible? since i'd have filled out the application by then)...so i guess, i will call her and ask her to send me written details thanks Link to comment Share on other sites More sharing options...
Mourning Cloak Posted July 14, 2011 Report Share Posted July 14, 2011 thanks for the replies! yes, i will be attending a Canadian school...she provided me with the details with numbers but nothing written...so it'd be reasonable to ask her to send me the written details?...my only concern is that after i get approved, she has different written terms than what we discussed and i dont want to end up having to negotiate again (if that is even possible? since i'd have filled out the application by then)...so i guess, i will call her and ask her to send me written details thanks Yes, asking for written details is more than reasonable (although usually there's no big difference between what they tell you and what you get). Link to comment Share on other sites More sharing options...
DocT7 Posted July 15, 2011 Report Share Posted July 15, 2011 I still negotiated items/terms after I applied but before signing any contract. I don't know much about the hit to your credit score by applying for LOCs but other threads on this board have suggested it's not a big hit, and you definitely won't be denied the LOC (which would be my guess as to how your credit would take a hit), even if you decide not to sign. Also, there was no difference in what I signed and what I was verbally told by my Scotia Professional Student rep. Link to comment Share on other sites More sharing options...
HBP Posted July 15, 2011 Report Share Posted July 15, 2011 Yeah, but no point having unnecesasry inquiries on your credit score just because you're shopping around. I'm just planning on mentioning that I'm shopping around, don't do a credit check yet, it's good, what can you offer me. Link to comment Share on other sites More sharing options...
simpy Posted July 15, 2011 Report Share Posted July 15, 2011 Yeah, but no point having unnecesasry inquiries on your credit score just because you're shopping around. I'm just planning on mentioning that I'm shopping around, don't do a credit check yet, it's good, what can you offer me. Precisely what I did. Although in shopping around, I learned that a lot of the reps really don't have a lot of flexibility in terms of offering much more than what is listed online. I think a good strategy in securing a LOC is to look at all of the plans from the major banks and figure out what you like. Then go to your favorite bank and ask them to match whatever plan you like the best. Although I didn't find anyone willing to match Scotiabank's ability to capitalize interest (which is super trivial, but not having to think about interest payments is one thing less to worry about), you probably could get other banks to throw in some perks instead. Link to comment Share on other sites More sharing options...
OrtuSolSolis Posted July 15, 2011 Report Share Posted July 15, 2011 Whatever you decide to do, remember: Every time a bank does a credit check, your credit line takes a hit. Your credit score should be in the hundreds (With good credit, 600+). The hit you take, according to my financial advisor is somewhere between 1-5 points. Don't worry too much about your credit taking a hit. Link to comment Share on other sites More sharing options...
The Ace of Spades Posted July 15, 2011 Report Share Posted July 15, 2011 Although I didn't find anyone willing to match Scotiabank's ability to capitalize interest (which is super trivial, but not having to think about interest payments is one thing less to worry about), you probably could get other banks to throw in some perks instead. National Bank of Canada also does this. Link to comment Share on other sites More sharing options...
hking03 Posted July 15, 2011 Report Share Posted July 15, 2011 Your credit score should be in the hundreds (With good credit, 600+). The hit you take, according to my financial advisor is somewhere between 1-5 points. Don't worry too much about your credit taking a hit. In theory it's not that big of a deal, but if you applied at every bank without thinking about it that might be anywhere from 15-25 points off of your score. If you have a borderline 600 score you could end up in the 500's. Banks and Lending companies look at your score in a range... if you were to drop below 600 that might not look as good to them as a 620. Also, if you just happened to apply for a credit card a few weeks before that or a car loan... that's another few points. It's not that big of a deal, but you don't want to go around getting credit checks at each bank. Link to comment Share on other sites More sharing options...
DocT7 Posted July 15, 2011 Report Share Posted July 15, 2011 I agree with everyone here. I thought I would just add that I literally had ZERO credit going into my application. Not even a cellphone bill... literally nothing, and I was approved without a cosigner/guarantor for the full amount and at prime etc etc etc... So, a hit to your score may not even mean anything for a medical student LOC. I certainly don't think my score was what got me approved, I think it was the acceptance letter. Link to comment Share on other sites More sharing options...
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