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Best perks to ask for when getting a LOC?


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Since all the banks seem to offer very similar LOCs and they all want our business, does anyone know what are some good perks that we can ask for? i.e. maybe a cash back CC with high annual fee, but getting it waived?

 

That's one of the best perks yes, and no co-signer. If they make you get a co-signer, walk. You don't want your parents on the hook for a 150K if something happens to you. Most banks don't require it, but BMO does. So they were scratched off my list instantly. Scotiabank, RBC, and TD can offer you their best credit cards free of charge during school. Not sure about CIBC. National Bank does for 2 years only. So it's up to you.

 

MY two finalists for my business are Scotia and RBC lol :P

Can't decide though.

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That's one of the best perks yes, and no co-signer. If they make you get a co-signer, walk. You don't want your parents on the hook for a 150K if something happens to you. Most banks don't require it, but BMO does. So they were scratched off my list instantly. Scotiabank, RBC, and TD can offer you their best credit cards free of charge during school. Not sure about CIBC. National Bank does for 2 years only. So it's up to you.

 

MY two finalists for my business are Scotia and RBC lol :P

Can't decide though.

 

Those are my two top options for now as well! I'm kind of leaning towards Scotia because of their 4% grocery/gas cash back card, where as RBC doesn't really have a CC that I find useful.

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Those are my two top options for now as well! I'm kind of leaning towards Scotia because of their 4% grocery/gas cash back card, where as RBC doesn't really have a CC that I find useful.

 

I'm trying to decide between the travel visas. The passport or the Infinite Avion. Both have said they will waive the annual fees for the duration of school and residency. So it's a toss up. Scotia might actually have the better line of credit though (don't have to make payments, interest just capitalizes, interest stays at Prime, FOREVER. And you can continue to borrow once you're done school).

 

But I think the Avion is the better travel rewards card. And the RBC LOC is pretty close to the Scotia one, but the terms are more flexible and open to changes to interest rates in addition to prime which are uncool.

 

Cheers

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That's one of the best perks yes, and no co-signer. If they make you get a co-signer, walk. You don't want your parents on the hook for a 150K if something happens to you. Most banks don't require it, but BMO does. So they were scratched off my list instantly. Scotiabank, RBC, and TD can offer you their best credit cards free of charge during school. Not sure about CIBC. National Bank does for 2 years only. So it's up to you.

 

MY two finalists for my business are Scotia and RBC lol :P

Can't decide though.

 

If you die, your estate (and therefore your parents/husband/wife/common-law-partner/kids) can be on the hook to pay it off. So not having a cosigner doesn't guarantee that your parents won't have to pay if something happens to you.

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If you die, your estate (and therefore your parents/husband/wife/common-law-partner/kids) can be on the hook to pay it off. So not having a cosigner doesn't guarantee that your parents won't have to pay if something happens to you.

 

what happen if you have no property, ie estate? Will the bank force your family to pay from their pocket?

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what happen if you have no property, ie estate? Will the bank force your family to pay from their pocket?

 

No, you are no longer a dependent. And if you're not married or common law, no one is responsible for your debt. They just won't inherit anything.

No one is on the hook for **** if you're the only one on the loan, and legally you are not attached financially to anyone else.

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According to this credit counseling website:

 

http://www.debtcanada.ca/news/archive/debtors-rights/83-inherited-debts

 

If you didn't sign for it, you don't pay for it. If the estate doesn't have money left to pay a debt, and no one co-signed, it becomes an unpayable debt. I'm trying to find the actual legislation pertinent to this discussion. I'll post again if I find it.

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According to this credit counseling website:

 

http://www.debtcanada.ca/news/archive/debtors-rights/83-inherited-debts

 

If you didn't sign for it, you don't pay for it. If the estate doesn't have money left to pay a debt, and no one co-signed, it becomes an unpayable debt. I'm trying to find the actual legislation pertinent to this discussion. I'll post again if I find it.

 

I don't know that I'd trust that site... It looks like it's more of an advertisement for a law firm than anything else. I know there are certain debts you do have to pay off (or your estate does/the beneficiary/next of kin). Taxes must be filed and paid in full regardless of whether you have a SO. Mortgages are the same (which is why a lot of people will have mortgage insurance- so the bank cannot go after random family members for the money). As for loans such as these, the bank may treat them similar to a mortgage (I discussed it with my bank rep when I signed documents, but as I have life insurance that would cover most (if not all) of my debts, it wouldn't matter at this point). Banks aren't just going to write you off because you died. They will try to get their money back.

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if its your debt only (ie no cosignor) and you die, that debt will be written off. The bank will try to take your belongings (assets in your name!) but those will be few if you're a student (and there are likely exemptions to what can be taken ... similar to bankruptcy). If you own a home then yes they will take it. They cannot go after parents, spouses or kids...same with taxes etc...

 

for example in a case of bankruptcy where only one spouse declares bankruptcy, the other is NOT on the hook for the money. This applies to all creditors (credit card, banks, government of canada i.e. taxes, etc...) Any joint bank account will still be an asset (which can be taken and distributed among creditors regardless of whose money it is in the accounbt), and joint debt will become responsibility of the co-signor only.

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if its your debt only (ie no cosignor) and you die, that debt will be written off. The bank will try to take your belongings (assets in your name!) but those will be few if you're a student (and there are likely exemptions to what can be taken ... similar to bankruptcy). If you own a home then yes they will take it. They cannot go after parents, spouses or kids...same with taxes etc...

 

This.

 

After you die:

Inheritance = Assets - Liabilities (i.e. unpaid debts)

If Inheritance < 0, Inheritance = 0.

If Inheritance > 0, dependents = happy.

 

Debts die with you. The law on that was changed someplace back in the Dark Ages in England.

 

The reason the bank wants you to buy LoC insurance is so that they get paid back.

 

There is no benefit from us getting the insurance... except if we have some assets (ex: a life insurance payout) to pass on to people and we don't want the bank taking them in lieu of payment on the LoC.

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if its your debt only (ie no cosignor) and you die, that debt will be written off. The bank will try to take your belongings (assets in your name!) but those will be few if you're a student (and there are likely exemptions to what can be taken ... similar to bankruptcy). If you own a home then yes they will take it. They cannot go after parents, spouses or kids...same with taxes etc...

 

for example in a case of bankruptcy where only one spouse declares bankruptcy, the other is NOT on the hook for the money. This applies to all creditors (credit card, banks, government of canada i.e. taxes, etc...) Any joint bank account will still be an asset (which can be taken and distributed among creditors regardless of whose money it is in the accounbt), and joint debt will become responsibility of the co-signor only.

if you are married, then they can after your spouse i believe. so if you're married, get the insurance.

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if you are married, then they can after your spouse i believe. so if you're married, get the insurance.

 

From everything I've read, they cannot unless your spouse signed the agreement with you. You can't be held accountable for debts that you did not contractually enter into. Most people get mortgages together, etc, which of course the bank would have someone still to go after should one of you die. But with an unsecured line of credit and no cosigner I cannot find any sort of legal avenue for the bank to go after your spouse or next of kin.

 

As for why banks are trying to sell insurance, I think the answer to that is fairly obvious. They get paid to sell that stuff. I highly doubt they would tell you that if you died they'd be SOL.

 

As those above had said, the banks can only go after the estate, in Canada anyways. In the states I believe there is the possibility to inherit debt in certain jurisdictions.

 

If someone can find documentation that states otherwise I'd be very interested :)

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if you are married, then they can after your spouse i believe. so if you're married, get the insurance.

 

As Dr Henderson said, that is incorrect.

 

However, what counts as the estate of the deceased spouse - which the creditor can go after - may include things that the living spouse needs, like a vehicle or home (not all couple purchase a home jointly)that is in the name of the deceased, and I think joint banking accounts. So I agree that anyone who is married should get insurance, but from what I've read here and elsewhere, the loan insurance is likely not the best deal, and it is probably wise to shop around for insurance policies - that are independent of a credit product - with which to protect one's spouse and/or dependents. Far more customizable,I'd imagine.

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As Dr Henderson said, that is incorrect.

 

However, what counts as the estate of the deceased spouse - which the creditor can go after - may include things that the living spouse needs, like a vehicle or home (not all couple purchase a home jointly)that is in the name of the deceased, and I think joint banking accounts. So I agree that anyone who is married should get insurance, but from what I've read here and elsewhere, the loan insurance is likely not the best deal, and it is probably wise to shop around for insurance policies - that are independent of a credit product - with which to protect one's spouse and/or dependents. Far more customizable,I'd imagine.

 

Exactly, on all points. My specialist at RBC was actually really great, she was quite candid with me that their policies wouldn't give me the best bang for my buck- she recommended shopping around. Knowledge is power :D

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Exactly, on all points. My specialist at RBC was actually really great, she was quite candid with me that their policies wouldn't give me the best bang for my buck- she recommended shopping around. Knowledge is power :D

 

OMA offers great insurance plans for medical students. PM me if interested.

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