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WannaBeBanker

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  1. Yes you have to keep in mind that you want to leave available room for the interest to be added onto the balance at the end of each month. As your balance owing gets bigger and/or if interest rates go up, that monthly interest amount will also get bigger and bigger. The monthly interest on $40,000 owed at Prime Rate would be $130, or $1580 annually (rough figures). The monthly interest on $120,000 would be $390, or $4680 annually. Always leave as much "space" available on the LOC as you can, because the interest cost will start out small and end up way bigger when your balance gets close to the limit.
  2. I wouldn't recommend going this route as it can lead to trouble in 3rd year and later. If you max out the $100,000 after 2 years you will be left with only $35,000 left for your final year, and the interest tacked on each month gets bigger and bigger as the balance grows and/or interest rates rise. That could leave you with only $30,000 or less in actual funding for your final year after the interest is taken into account. Not only that, but once the balance exceeds the limit at any given point, you will have to start making monthly payments to bring the balance owing down below the limit each month, so be prepared to have a plan for that and a source of income to do that as you won't be able to take any more from the LOC.
  3. While the regular American Express cards issued directly through American Express are charge cards, the ones through Scotiabank are not. They are like traditional credit cards, with limits, minimum payments, etc. The "severe penalties" you mention is just the interest that is charged on the cards, which is pretty standard across the board with these premium cards (around 20% or so). None of that should matter though, because at the end of the day regardless if it's a traditional credit card or a charge card you should be paying off the balance in full each month. If you need to carry a balance on anything, that is what the line of credit is for. You shouldn't be paying any sort of interest on credit cards, use them, pay them off, get the rewards.
  4. I doubt RBC will be able to match the package from Scotiabank - you're getting $146,000 in total credit with that package, 2 premium credit cards with annual fees waived every year, Prime Rate, and the 2 year repayment grace period. TheSaskConnection hit the nail on the head with that informative post. In regards to your worry about pulling multiple credit bureaus, don't worry about that. As long as you keep the credit inquiries close to each other (I believe it's within 2 weeks) then it will be considered as only one hit on your bureau as opposed to multiple hits. Shopping around for credit, whether it be for a mortgage, student loan/line, etc. is 100% ok and you won't get dinged for that. Your credit score will help determine what terms/rates the banks can offer a lot of times, so multiple applications are good in this case to see what everyone is willing to offer you. That's not necessarily the case with these PSLOCs, as the limits/rates/terms are pretty standard for everyone and not determined by your credit score although with some exceptions.
  5. You'd have to have more than $60K in government student debt before it started reducing the limit on the LOC.
  6. Scotiabank does offer the PSLOC for out of country schools, it is only for a select few number of schools right now though. I can tell you though that the University of Buffalo is not on that list. I'm not sure if the list will be expanding or not in the future, as it is literally only 3 out of country schools right now.
  7. That Prime - 0.25% is for medicine and dentistry students. Lowest rate for law students has been at Prime for a while now.
  8. Honestly, this has nothing to do with TD as a bank, and everything to do with the person you dealt with. I can't stress how important it is to deal with someone who is dedicated to these plans, as opposed to someone who may see a handful of these in their careers. I wish there was an easier way to communicate that to all incoming law students or anyone else looking for these plans. Also, go to Scotiabank, "they're" better. 😏
  9. Not a problem at all, if it's available to you there's no harm in using it.
  10. It sounds like whoever you were talking to does not know much about the professional student LOCs. Do yourself a favour and get in touch with someone who has the experience and expertise with these. There are lists of dedicated advisors for each school, or ask your school or a classmate for a name/contact info. Do not settle for anything less, your overall experience will be much better.
  11. You're correct that credit reports do not cross borders, and I'm not sure that any banks will look at a US credit report to take into consideration with these. I can tell you that I've seen many students get approved without having any credit history, without the need for a co-signor. Now, being a dual citizen and being a non-resident could factor into you needing a co-signor, but really you'd have to apply to find out. I would suggest getting in touch with a rep (http://www.scotiabank.com/ca/common/pdf/personal_banking/Scotiabank_SPSP_representative_English.pdf) to discuss this further and start an application (without a co-signor to start). I would suggest to get in touch with the rep from the school that you've already been accepted at. You will not get access to the line of credit by just making a deposit and accepting a spot, you will need to wait until you are officially enrolled into the program and can provide confirmation of such (usually sometime throughout the summer for most schools).
  12. I can guarantee you that it is a hard and fast rule, at least at Scotiabank. There can be multiple people not doing their jobs properly out there out of the hundreds++ that do these, and I'm not saying it is their fault either. Anyways, it's nothing major. Everyone should go in with the expectation that they do not get access to the line of credit until they can provide a proof of enrollment. Thos that do just got "lucky" if you wanna look at it that way, such as you. 😀
  13. Depends on the school and the year of the program
  14. Any line of credit that you do not pay the interest from your own resources will end up having "compounded interest". In your example above, if you borrowed $10,000 and it accumulated $33 in interest during month 1, your balance owing will be $10,033 starting in month 2 since that interest gets added to the balance at the end of month 1. The interest for month 2 will now be calculated on a balance of $10,033 and interest will be charged on that full amount. This is not something you can negotiate with the banks, you either have the means to make that interest payment each month to avoid the compounding effect or you don't. If anyone tries to tell you otherwise they are 99.9% likely to be misleading you, knowingly or not.
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