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Has Anyone Had Loc Be Declined?


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Hello all,

 

I am wondering if anyone has had a LOC be declined while dealing with a specialist for med/dent students...specifically for the reason of a few late bill (small amount and not for credit product) payments, even with an excellent score (most people don't know their own credit score though unless they order it by mail or pay to see it online so this last part of my question only would apply I guess if you knew your score beforehand)...it is possible to have a great score with only a few lates, I do know this for a fact, but wondering if ppl have still been declined due to this reason alone, and if so, how did you go about dealing with it? 

 

Also...had anyone had the experience where they need to provide a current bank statement to the bank they are applying for the LOC with (this obviously would mean you bank elsewhere normally)?

 

Thanks for the input!
 

Med_Pack

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Just go to a different advisor at another bank, problem solved - if it did happen and its not hypothetical.

As a CMG, you could have poor credit, but as long as you are not negligible - you're a safe enough bet to give a LOC too, you don't need all of it at once anyways, so likely they would give you access to a smaller amount initially etc.

Again, if you were negligible and started spending alot...well, that would just make them interest money anyways, and they know you're statistically very likely to graduate and make it to practice = making money. So non-issue.

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So to clarify, like I said, my credit other than this is really good...in terms of my score, and my use of credit etc, I don't have any undergrad debt and pay my cc balance in full every month. 

I had been paying bills (on time) that were in excess of my service for months...wrongly...they had not been charging me the right amount and then said that I would be credited for the excess 

which was quite a bit and would have covered my next few bills..however, they never did the credit properly (but I didn't realize this until I got the notice in the mail after a few bills were past due that I owe money) so then I started the investigation on this and was paying all the bills on time in the meantime...

eventually resolved and overpayment credited back...but after talking to them for a long time today, even though they realize it was in error, their view isthat the bills were still *technically* late since although they 

were wrongly charged (given the overpayment credit that should have been applied) but they still were generated...anyway...it is a lesson in double and tripling checking and I guess even if people wrongly charge

you you should pay it anyway and be checking on things even when you have been told it has been paid by the provider (as weird as that sounds even as I type it)..and then deal with it after paying for it wrongly...I have certainly learned this the hard way but to hear that my LOC was declined due to this

really broke my heart...as I do have my credit report and know that my score is excellent and everything else is in tip top shape and I've never had any difficulties being approved

for credit before this...thought that getting into med school would be the toughest part but as it turns out there is more hell to come...the ride never ends, as they say!

I am always upfront and will be if I go elsewhere but I don't like applying for credit everywhere because it takes a hit on your credit...so I'd rather finish with the bank I started with if it was at all possible...first step is to send them an explanation anyway and then see what happens when they re-submit. But wondering if anyone else has been in a similar situation and what the outcome was. Thanks.

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This should not be a problem for your bank.  And if it is, you need to find a new bank.

 

Keep in mind that you are the customer and they want your business.  They serve you, not the other way around.

 

In fact, you are one of the absolute best customers they are going to have.  It might feel weird to think that way, because not very long ago you were a broke, scum-of-the-earth undergrad.  But relatively soon you will have a stable, high income and will be in need of all sorts of financial services.  They are strongly motivated to keep you and your business for as long as possible, preferably for life if they can.

 

Practice saying "I want to continue my relationship with your bank, but if this is a problem I will take my business elsewhere" with authority and conviction.  And if they're still being stupid...walk.

 

 

Disclaimer: I may have missed some relevant details because that unbroken, uncapitalized wall of text made my eyes bleed.

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Just go to a different advisor at another bank, problem solved - if it did happen and its not hypothetical.

 

As a CMG, you could have poor credit, but as long as you are not negligible - you're a safe enough bet to give a LOC too, you don't need all of it at once anyways, so likely they would give you access to a smaller amount initially etc.

 

Again, if you were negligible and started spending alot...well, that would just make them interest money anyways, and they know you're statistically very likely to graduate and make it to practice = making money. So non-issue.

I'm pretty familiar with the banking industry and it's not a matter of just finding another advisor...advisors do not approve credit...they simply submit the application..it is the underwriters that do the credit approval, so even if another advisor submits it, if the underwriter doesn't want to approve it then the advisor can appeal it (which I think will happen in my case) but it's still not the advisor's decision to make in the end. 

 

And I don't have poor credit...as I said in my original post...oddly...yes, I have a credit issue now with these silly bills that were "late" but if my credit was bad, my score would be bad too...I also have no other outstanding debts so there's nothing there for them to not want to extend credit...

 

People who had a cc at another bank (with nothing/little owing), were you asked to close them to get the full value of the LOC?

 

Q from my first post that: Also...had anyone had the experience where they need to provide a current bank statement to the bank they are applying for the LOC with (this obviously would mean you bank elsewhere normally)?

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It sounds odd that I would get declined for a handful of late payments even though my score/everything else was good? I kind of thought so but at the same time I know some banks are really coming down hard on lending. And it's RBC. And it's like my life is falling apart in front of my eyes...wish I had enough money to do this without the bank!

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I did provide my bank statement since I don't bank with scotia. I am not sure if it was taken into account. CIBC (who I loathe now) decided that since I had money in the bank, they wouldn't approve me for the amount the university estimates because "I should be using my own money". I bolted.

 

I was never asked to close my other cc but they did indicate since I had access to them, they would decrease my LOC by the value of my cc limits (eg my limit is 10, 000, my loc would be 190,000 instead of 20,000).

 

Hope it works out for you

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I'm pretty familiar with the banking industry and it's not a matter of just finding another advisor...advisors do not approve credit...they simply submit the application..it is the underwriters that do the credit approval, so even if another advisor submits it, if the underwriter doesn't want to approve it then the advisor can appeal it (which I think will happen in my case) but it's still not the advisor's decision to make in the end. 

 

And I don't have poor credit...as I said in my original post...oddly...yes, I have a credit issue now with these silly bills that were "late" but if my credit was bad, my score would be bad too...I also have no other outstanding debts so there's nothing there for them to not want to extend credit...

 

People who had a cc at another bank (with nothing/little owing), were you asked to close them to get the full value of the LOC?

 

Q from my first post that: Also...had anyone had the experience where they need to provide a current bank statement to the bank they are applying for the LOC with (this obviously would mean you bank elsewhere normally)?

Yes yes it is, if the underwriter doesn't want to approve it, it is because the bank rep didn't provide the correct categorization of your request.

 

Again, unless you majorly defaulted on some big credit cards, or defrauded money, etc, then there is no way that you WON'T get  a LOC as a medical student.

 

My best friend got his LOC, and he dodged debt collecters for a solid year and a half until he realized it may be an issue for his medical career, and his parents bailed his butt out and paid it off, with a loan they got themself. 

 

 

A few late bills, should not hold you back.  The advisor needs to get on the phone with the underwriters, or have their branch manager add special notations/flags onto your application for the underwriter to take into account.

 

 

 

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It sounds odd that I would get declined for a handful of late payments even though my score/everything else was good? I kind of thought so but at the same time I know some banks are really coming down hard on lending. And it's RBC. And it's like my life is falling apart in front of my eyes...wish I had enough money to do this without the bank!

Banks are not coming down on lending lol, like I said go elsewhere. Banks are looser than ever anecdotally, and given the predisposition as a medical student, the risk-reward is worth it to them to make things work for you.

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It honestly just sounds like you're at a bank that has no clue what they are doing. Or an advisor that doesn't deal with professional students etc.

 

Remember, the bank works for you, not the other way around. Its privilege, one of few that you'll get until you're at the mercy of the system later, so use it.

 

But the unfortunate thing is that I am with a bank that is not new to this...RBC...and the advisor is someone who is a specialist on their site for just med/dent students and actually has been doing this for many years...I've just finished writing her an email explaining everything and also questioning how they could choose to decline a LOC for someone with a good credit score and good potential to pay it back etc...and to reconsider.  I'll probably find out by Tuesday and I'll keep everyone posted. Thanks for everyone's input and support on this thread, I really appreciate it! If anyone else has any thoughts/experiences to share, please do!:)

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But the unfortunate thing is that I am with a bank that is not new to this...RBC...and the advisor is someone who is a specialist on their site for just med/dent students and actually has been doing this for many years...I've just finished writing her an email explaining everything and also questioning how they could choose to decline a LOC for someone with a good credit score and good potential to pay it back etc...and to reconsider.  I'll probably find out by Tuesday and I'll keep everyone posted. Thanks for everyone's input and support on this thread, I really appreciate it! If anyone else has any thoughts/experiences to share, please do! :)

 

Ok I have dealt with this before (every year it seems ha, there are a handful I get to help push through the system)- more than once - and strangely it is usually with RBC when it happens. Not surprisingly as there are two big players in the game the next step is to see what scotia says along with any other banks you want to target. You would think they are using the same criteria (usually how banks work) but that is not the case. Your advisor actually DOES have a big role in this which is relatively odd in banking.

 

Works out in the end - I have only had one person where it didn't and that was because of some truly bad credit. Ha, took us a year to clear that up and get the LOC working.

 

so bottom line, don't worry and start pushing. If you need help let me know, and we will call on some of the better advisors to help.

 

to answer the CC question - yes many do drop the LOC amount by the credit on other things. Makes sense as they are only allowed to extend your credti to a particular level.

Edited by rmorelan
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OK, I will keep trying and meet with other banks. This week, I'm expecting early in the week, I will hear back from RBC regarding the outcome of the appeal. I have some other appts lined up at the end of the week at other banks...will keep you guys updated on how this all goes. It would be nice to get a list going of what banks people think is the best for approving/overlooking small defects in credit history to the strictest. like 1,2,3,4,5 from least to most strict of the big five.

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Update: RBC says this is really unfortunate and they will need to have their manager add some support notes and then send it back out...I was hoping she would have already done that but I am still waiting and hoping she can do this for me quickly as I really need to get this squared away...

they also say that although bankruptcies are on file for 7 years, late bills are on for life....so I will always have a problem getting credit in the future regardless of the fact that I do use credit responsibly. Very disheartening to hear that a few "late" bills will follow me around forever even though bankruptcies don't even do that...

Anyway....I am feeling at a loss and have an appt with CIBC tomorrow...and prob Scotia if I can manage to make it work with my hectic schedule by the end of the week...I really wish this was a done deal.

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Update: RBC says this is really unfortunate and they will need to have their manager add some support notes and then send it back out...I was hoping she would have already done that but I am still waiting and hoping she can do this for me quickly as I really need to get this squared away...

they also say that although bankruptcies are on file for 7 years, late bills are on for life....so I will always have a problem getting credit in the future regardless of the fact that I do use credit responsibly. Very disheartening to hear that a few "late" bills will follow me around forever even though bankruptcies don't even do that...

Anyway....I am feeling at a loss and have an appt with CIBC tomorrow...and prob Scotia if I can manage to make it work with my hectic schedule by the end of the week...I really wish this was a done deal.

They are BSing you. They will have very little impact on you, just their excuses for incompetence and not really taking any extra time to work on your file.

 

Just move on to a different bank already.

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yeah this isn't they right way to start off a professional business relationship - they are messing this all up. This is supposed to be the start of a long term partnership in effect.

 

If a bank doesn't treat you correctly when you are "small" don't trust they will when you are fully arrived as staff physician. Of course banks are in it for the money - but to get that money they need to provide the service.

 

They are BSing you. They will have very little impact on you, just their excuses for incompetence and not really taking any extra time to work on your file.

Just move on to a different bank already.

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No need to worry

 

Negative information stays 6 years on your file in Canada, 7 years in the States. That includes late payments. 

 

I forgot once about a credit card 4 years ago, it went to collection, my credit score was abysmal went i applied first time for my LOC at RBC (low 500, bad, bad) 

 

I got refused the LOC, but they gave me a 1000$ limit credit card. In three months my score was back to low 600's. Me and my counsellor applied again, got accepted for a 50k$ LOC (no co-signers, even with my bad credit). 

 

8 months later, aka today, my score is still low 600's (will be bad for the next two years, until my collection account is erased from my file because it will 6 years from date of last activity), but I got approved for the full LOC. 

 

All of this at RBC: my counsellor was able to present a strong case to the special branch of the bank taking care of wankers like me. 

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