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Megbean123

SLOC - Basically no clue

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Hey all, so I was fortunate enough to get scholarships throughout my schooling and that the 1 or 2 semesters I did have to pay were 1500$ in UG. I never had to take out student loans. I'm in the process of applying, under the premise I will be attending U of T. What are the basics I should know? I was told on the phone it would be 150k, "prime" was an interest rate, I assumed. I saw something about a 1 year grace period while you were articling which you began paying back after articling. I have a credit card which I used for one month. I accumulated 600$ on it and payed 2 months late which would I assume impact a credit score negatively. That is all of my established credit history. The card is still active but hasn't been used since I paid it off. 

 

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I havent gone through the process but from others here, it seems some people dont haggle although it is important. 

Look at this posters deal: 

 

 

Maybe find others on here that may be better and go to your bank with it and ask them to match it. 

Also, get a free equifax credit report to see where you are at: https://www.consumer.equifax.ca/personal/education/credit-report/how-to-get-a-free-credit-report/

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3 hours ago, yeezy said:

I havent gone through the process but from others here, it seems some people dont haggle although it is important. 

Look at this posters deal: 

 

 

Maybe find others on here that may be better and go to your bank with it and ask them to match it. 

Also, get a free equifax credit report to see where you are at: https://www.consumer.equifax.ca/personal/education/credit-report/how-to-get-a-free-credit-report/

Thank you for this! I so will!!!

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Make sure you're getting prime. Some banks might not give it to you, or even say they won't if you ask. That's fine. Go to another bank!

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5 hours ago, easttowest said:

Make sure you're getting prime. Some banks might not give it to you, or even say they won't if you ask. That's fine. Go to another bank!

Hey isn't prime just the interest rate? thats what I understood. Also does anyone know how the late payment on my credit card will impact me?

I was told I would probably need a co-signer, which is my mom, who is in large amounts of debts herself so i'm worried she'll be rejected too

Edited by Megbean123
more info

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Just now, Megbean123 said:

Hey isn't prime just the interest rate? thats what I understood. Also does anyone know how the late payment on my credit card will impact me?

It'll affect your credit score. Banks will check your credit score to see if you're fine.

 

Have you had consistent use of credit cards since then, where you made payments on time?

 

Prime is the fixed rate banks tie to the interest rate of the central bank. Some banks don't offer that rate to law students. Scotia does. Not sure on others. 

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Shop around, too, and make sure that you work with someone who has experience with PSLOCs. You may not need a co-signer. 

 

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18 hours ago, pzabbythesecond said:

It'll affect your credit score. Banks will check your credit score to see if you're fine.

 

Have you had consistent use of credit cards since then, where you made payments on time?

 

Prime is the fixed rate banks tie to the interest rate of the central bank. Some banks don't offer that rate to law students. Scotia does. Not sure on others. 

Hey yeah, I haven't used anything credit related since, just paid it off and basically forgot about the card. I was told that its possible CIBC never reported it, because they often don't report clients, no clue as to the accuracy of that, although it was someone from a bank who told me that

Edited by Megbean123

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Just now, Megbean123 said:

Hey yeah, I haven't used anything credit related since, just paid it off and basically forgot about the card

I don't know. It'll depend on your credit score. You'll find out more once you check at a bank.

Be warned that doing your own checks/ the banks doing it can lead to "dings" against your score so don't do it often.

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https://borrowell.com as well as other online services will provide you with a free credit report (in the case of Borrowell, at the cost of having their credit services promoted to you). You should check it out, and it should also tell you whether your late payment incident had an impact on your score (which it probably did). Credit scores and the impact of your behavior on them is a whole thing which I suggest you read up on, but in particular pay attention to some key credit tips (which you can find in articles anywhere - including on Borrowell). For example, leaving your credit card unused for months is also not necessarily a great idea. This is stuff you should get acquainted with for life in general, not just your SLOC.

The gist with credit scores is that if yours is above 700, then that means you'll probably have an easier time securing a loan, and if you don't then you may be asked for a cosigner / have a hard time getting a favourable rate. But, credit scores are hardly the only factor that plays a role and there's all sorts of other things that might come into play when you try to acquire a loan. Someone else might be more qualified to talk about that.

Another thing to remember to do is look into your government student loan options, which I don't you mentioning. Government loans, unlike bank PSLOCs, do not accumulate interest while you're at school. That is HUGE and is why anyone with half a sense would tell you to max out your gov student before even touching your PSLOC. 

---

What I hope I imparted on you is that there's many things to know and know well when you're arranging your financing for school. Far more than anyone could succinctly summarize in a response to a forum post. I suggest you start on a Google adventure, check out your school's money matters page, look up your province's student loan website, and get a good sense of wise credit use. These things matter, and I promise you you'll prefer learning about them now than in 4 years time!

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2 hours ago, ranchonpizza said:

https://borrowell.com as well as other online services will provide you with a free credit report (in the case of Borrowell, at the cost of having their credit services promoted to you). You should check it out, and it should also tell you whether your late payment incident had an impact on your score (which it probably did). Credit scores and the impact of your behavior on them is a whole thing which I suggest you read up on, but in particular pay attention to some key credit tips (which you can find in articles anywhere - including on Borrowell). For example, leaving your credit card unused for months is also not necessarily a great idea. This is stuff you should get acquainted with for life in general, not just your SLOC.

The gist with credit scores is that if yours is above 700, then that means you'll probably have an easier time securing a loan, and if you don't then you may be asked for a cosigner / have a hard time getting a favourable rate. But, credit scores are hardly the only factor that plays a role and there's all sorts of other things that might come into play when you try to acquire a loan. Someone else might be more qualified to talk about that.

Another thing to remember to do is look into your government student loan options, which I don't you mentioning. Government loans, unlike bank PSLOCs, do not accumulate interest while you're at school. That is HUGE and is why anyone with half a sense would tell you to max out your gov student before even touching your PSLOC. 

---

What I hope I imparted on you is that there's many things to know and know well when you're arranging your financing for school. Far more than anyone could succinctly summarize in a response to a forum post. I suggest you start on a Google adventure, check out your school's money matters page, look up your province's student loan website, and get a good sense of wise credit use. These things matter, and I promise you you'll prefer learning about them now than in 4 years time!

Thanks! right after exam period, I'm getting on the loan applications but I was denied for them this year when I applied, so I was pretty sure I would be denied again and would need to take out the LOC. 

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