Jump to content


  • Content count

  • Joined

  • Last visited

Community Reputation

66 Decent People

About ScotiabankLawAdvisor

  • Rank

Recent Profile Visitors

670 profile views
  1. Can I still get a LOC with personal debt? Advice?

    I would 100% disclose that to any bank you are applying for credit with. Even though this would not report on your credit bureau or anything, a 3% monthly payment on $70,000+ is $2,100+ per month, so you'd have to make sure you and the bank knows what you'd be getting yourself into. This could put you in a situation where you won't be able to afford to keep up with payments once you're done law school. If you get a line of credit (and possibly gov't loans?) and end up owing $100K+ on it that payment could be upwards of $1000-1500 per month, add the $2100+, add rent, add expenses... you would then be in a situation where you'll need to be netting $5,000-6000+ per month just to keep your head above water, which would equate to a gross salary of 85,000-100,000+ coming out of law school. I'm not saying it wouldn't be possible, but this would have to be thoroughly thought out and explained.
  2. Requirements to be approved for LOC

    No it does not
  3. Requirements to be approved for LOC

    There is no maximum as to how much you can pay at any time, you are free to pay the whole balance at any time without any penalty. It is not like a mortgage in that sense.
  4. Requirements to be approved for LOC

    Repayment would work like this right now: Repayment starts a year after finishing articling. At that time you have the option to either pay interest only for a year and start principal repayment two years after finishing articling, or start pricipal repayment a year after articling. At that point, the amortization usually defaults to 10 years, but can be extended to 15 years at your request. law school (3 years no payments) + articling (1 year no payments) + grace period year (1 year no payments) + interest only grace period (1 year interest only payments) + regular repayment (10-15 years max) - during regular repayment you may also defer principal payments on loans for periods up to 12 months upon the birth or adoption of a child (maternity or parental). Hope that helps!
  5. No co-sign, no hope?

    Hi bhaywardio, I'm going to chime in on the situation and give you a bit of advice. Work with the bank you have the longest/best relationship with. Having a collection on your credit bureau is a big red flag for being credit worthy. It doesn't matter how it happened or the reasons for it being there, there is always a story. Any credit grantor will deem you a high risk to lend to, especially if you are not an existing client of theirs. Now with that said, if you have a good long standing relationship with a particular bank, I would approach them and explain your situation. They may be willing to listen to your reasons and arguments, to try to overcome the fact that this collection was there especially if you can show you dealt with it as soon as you found out. I'm not saying this is going to work, as I said it is a huge red flag - things don't go to collections without multiple attempts of the original creditor/company to contact you in one way or another to get the account up to date. You can't expect to have a debt/bill in your name outstanding and claim ignorance, that it was someone else's fault/responsibility etc. Own up to it, which from I can see you've been doing so already, and show that it was a one time mistake and that it shouldn't happen again. I've actually seen more than my fair share of people in a similar situation as you, where they paid the price by trying to help others. You can kind of look at it as you were a co-signor for the person you tried to help out in this case, and look where it got you. This is one of the risks involved in being a co-signor/vouching for someone. I can tell you from experience that if you walked in off the street as a new applicant I'd have a near impossible hill to climb to get you approved. Now if you were a customer of ours for a long time, had a good relationship, perhaps even your family also had a good relationship/history with us, I could use that as "ammo" to help get an exception made to get an approval for you. Believe it or not banks value their relationships with their clients. Less people go into banks nowadays than they used to, but there is still a lot of value in keeping a close relationship with your bank/banker. I'm not saying it would work, but the chances would be higher if that was the case. If it doesn't work out now, it may work for L2, or L3. Again, I'm not saying it absolutely will work if you re-apply in a year's time or two years' time, but I wouldn't rule it out completely. Time heals all wounds, and a year or two might not be enough, but it could be. Again, this could depend on your relationship with your bank, and many other factors. It's a risk to enter L1 not knowing if you can afford to continue beyond that and I'm not encouraging or discouraging you from doing so, but there still may be a chance. Ultimately the decision is yours to make and it's not always an easy one. Start with your main bank first, and work from there. I can't say I know exactly how other banks will approach this, but I have a good idea. Just because one says no doesn't mean they all will, they all have different adjudication models and risk tolerances. That's not to say that I haven't been surprised with how things work out sometimes, so you never know unless you try. I hope things work out for you one way or another, and if I can be of any help feel free to ask.
  6. I don't mean to be the bearer of bad news but these are actually some of the easiest credits to be approved for. Given the amounts and rates granted on these LOCs, and the fact that they are unsecured with the vast majority not needing a co-signor, these are by far some of the easiest credit applications you'd go through. In my ~5 years of doing these applications I've had very few people be declined, and very few that needed to revisit the application to include a co-signor. If I had to guesstimate my volumes I've probably done 200-300 applications over that time and only had a handful come back as either not approved or that required co-signors. You'd go through much more stringent applications for regular LOCs, mortgages, business loans etc.
  7. No I don't know of an exact minimum.
  8. Appointment Tomorrow For LOC, Advice?

    Exactly - if your limit for first year is 35k and you rack up the balance to 35k in the first couple of months, the interest added to the balance at the end of each month will push it over the limit at which point you have to make payments to bring it back below. This becomes more of an issue in later years/articling etc. where the interest portions being added on are much more. Always remember to leave enough room for the interest to capitalize, unless you're ok with making payments every month.
  9. Requirements to be approved for LOC

    Submit a credit application!
  10. Appointment Tomorrow For LOC, Advice?

    Just to clarify you don't have to make any payments throughout law school, articling and for a year after articling. Keep in mind that in order to not be required to make any payments you have to stay within your credit limit. Following that you can have interest only payments for a year, and then you'd start principal/interest payments 2 years after finishing articling. It's a bit confusing.
  11. 574 is a really low score and it may be tough to get approved even with a co-signor, but you won't know unless you try. Depending on the reasons for the low score and the explanations for it, you may be able to get it done with a strong co-signor. I wouldn't decline any offers. Go into it with low but hopeful expectations, like I said you won't know until you try. Even if the LOC doesn't work out you may be able to work it with alternatives like others have mentioned. You can get the process started now if you already have an offer, and start working on it ahead of time.
  12. Requirements to be approved for LOC

    That depends on what you mean by "a bill was reported to Transunion". If it was a 30 day late and it's a one off then I wouldn't worry. If it's something more serious like a collection or a write off it could be problematic. Regardless, by the sounds of it I wouldn't worry too much since you said you've resolved it and you're still sitting in the "good" territory.
  13. Requirements to be approved for LOC

    I won't be able to accurately speculate as to how much of a concern that might be in your particular case as it depends on a lot of variables. If you're concerned and would really like to have a bit more insight I'd suggest you pull your credit report from either Equifax or TransUnion to have a better idea of your score etc. You'd have to order it online and pay a fee for the more detailed report, it should cost something like $25 or so. It doesn't sound too concerning from the limited information you've provided, I'd suggest just applying in the spring as you planned. Again, I don't see the big picture so take that with a grain of salt. The lender will be pulling your credit anyways and they can let you know if there are any issues at that time.
  14. Requirements to be approved for LOC

    Yes call them directly. Your acceptance letter will suffice to get the application process going.
  15. Line of Credit Advice

    You can do it in either place, just make sure you speak to an advisor who has a lot of experience with these, this list could be helpful. Call an advisor and they will give you all the information you need to apply.