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Turtles

Denied by Scotia, No Idea Why

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I advise you look into it further, get more details and ask for an explanation.
Scotia initially denied me because I had an account closed with an outstanding balance and they wrongfully assumed it had been closed for derogatory reasons. Turns out they were just unfamiliar with how BMO closes their student lines of  credit. BMO closes the line after you graduate (undergrad) so you can withdraw anything, you just pay it off..
So a completely standard and normal procedure regarding a BMO account with about $4k outstanding was completely misinterpreted by the Scotiabank rep and led to me being initially denied. 
That being said all I had to do was contact BMO and confirm a couple things and then I was fully approved no problem.

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Posted (edited)

I'll provide an update but it's not particularly favorable news. 

I reached out to one of the Scotiabank reps recommended here to ask about my options. I heard back from a different rep, who said she also works on these and could assist me. We chatted and she asked to see my Equifax credit report (which I have and provided) so she could review and submit an "exception request". She said she'd update me in a couple days. 

Unfortunately, I haven't received any update and I don't know if she took any actions on my file. When I followed up a week later, her email had an out of office message indicating a (surprise) two-week absence,  set to return last week. I followed up again today and received a new out of office indicating she will be away this week and set to return next week. 

With the COVID-19 pandemic, I'm obviously worried for her as it may be health-related. I'm not sure if I should be waiting yet another week and trying again or if it's time to re-assess. I'm increasingly stressed as I'm moving to a different province in a couple weeks but have yet to secure a loan (I don't need access anytime soon, but if I won't be able to secure funding I'll need to change all of my plans).

Sigh.

 

 

Edited by Turtles

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17 hours ago, Turtles said:

I'll provide an update but it's not particularly favorable news. 

I reached out to one of the Scotiabank reps recommended here to ask about my options. I heard back from a different rep, who said she also works on these and could assist me. We chatted and she asked to see my Equifax credit report (which I have and provided) so she could review and submit an "exception request". She said she'd update me in a couple days. 

Unfortunately, I haven't received any update and I don't know if she took any actions on my file. When I followed up a week later, her email had an out of office message indicating a (surprise) two-week absence,  set to return last week. I followed up again today and received a new out of office indicating she will be away this week and set to return next week. 

With the COVID-19 pandemic, I'm obviously worried for her as it may be health-related. I'm not sure if I should be waiting yet another week and trying again or if it's time to re-assess. I'm increasingly stressed as I'm moving to a different province in a couple weeks but have yet to secure a loan (I don't need access anytime soon, but if I won't be able to secure funding I'll need to change all of my plans).

Sigh.

 

 

Did you apply to any other of the big banks or credit unions? It's a loss on Scotia for not getting your business. No point in getting hung up on them. 

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3 hours ago, OnlyResident said:

Did you apply to any other of the big banks or credit unions? It's a loss on Scotia for not getting your business. No point in getting hung up on them. 

No, not yet. TD wants Confirmation of Enrollment to start the process (Scotia was OK with acceptance letter) so I figure I'll wait until mid July once I actually have that. I also don't want to waste the credit hit from Scotia and so I am trying to exhaust that avenue before giving up. I don't even have anything from Scotia, whether a letter or even an email, stating I was denied yet, as it's been discussed by phone and they've been flaking on emailing. I'll need to get something to show the denial as I have a scholarship conditional on opening (or trying at 2 banks for) a student line of credit. 

You put in so much effort over a period of years to get into the school of your choice, you manage to make it into the specific program of your choice, and then you get a decent scholarship too, all for Scotiabank to then throw you a wrench without explanation and start ghosting you right before you're due to move. It sucks. All I can really do is exhaust my options there, try to figure out what happened, then make any changes needed before applying at CIBC or TD. 

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24 minutes ago, Turtles said:

No, not yet. TD wants Confirmation of Enrollment to start the process (Scotia was OK with acceptance letter) so I figure I'll wait until mid July once I actually have that. I also don't want to waste the credit hit from Scotia and so I am trying to exhaust that avenue before giving up. I don't even have anything from Scotia, whether a letter or even an email, stating I was denied yet, as it's been discussed by phone and they've been flaking on emailing. I'll need to get something to show the denial as I have a scholarship conditional on opening (or trying at 2 banks for) a student line of credit. 

You put in so much effort over a period of years to get into the school of your choice, you manage to make it into the specific program of your choice, and then you get a decent scholarship too, all for Scotiabank to then throw you a wrench without explanation and start ghosting you right before you're due to move. It sucks. All I can really do is exhaust my options there, try to figure out what happened, then make any changes needed before applying at CIBC or TD. 

I understand your frustration, I was actually approved by the Osgoode Scotia Rep who was very responsive and who I had no issues with. I cant understand why they are flaking on you. Btw, you only get one hit on your credit file if you apply to multiple lenders within a given period of time (usually 14-45 days) so you have no reason not apply to all of them and then decide. 

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Honestly, try another Scotia rep. It took me many reps to find one who knew what they were doing.

I also use the current scotia bank advisor and he's been great.

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On 6/23/2020 at 8:47 PM, pzabbythesecond said:

Honestly, try another Scotia rep. It took me many reps to find one who knew what they were doing.

I also use the current scotia bank advisor and he's been great.

I reached out to a different rep and unfortunately it's not going to be approved. As Scotiabank doesn't factor in existing income, scholarships, or assets, the amount of available, yet unused (no balance) credit I have as a working professional is a red flag for them, and despite offering to reduce credit card limits or close accounts, they won't budge. Which is great considering they advised me not to reduce my credit before applying because "if it's an issue we'll just approve for a lower limit or with a condition to lower credit before funds are released". Oh well. 

I've applied through TD and waiting to hear back from them now. Availability of funding will ultimately determine whether I can access law school, but it's looking pretty damn bleak.    

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Oh and for those following along at home, it took 32 days for the Scotia rep to get back to me after saying "I'll send you an update after the weekend" on the first Thursday of June. 

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2 hours ago, Turtles said:

I reached out to a different rep and unfortunately it's not going to be approved. As Scotiabank doesn't factor in existing income, scholarships, or assets, the amount of available, yet unused (no balance) credit I have as a working professional is a red flag for them, and despite offering to reduce credit card limits or close accounts, they won't budge. Which is great considering they advised me not to reduce my credit before applying because "if it's an issue we'll just approve for a lower limit or with a condition to lower credit before funds are released". Oh well. 

I've applied through TD and waiting to hear back from them now. Availability of funding will ultimately determine whether I can access law school, but it's looking pretty damn bleak.    

 

I don't understand. Did they want you to have a higher utliziation ratio on your credit cards?

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Posted (edited)

Sorry to hear that Scotia is absolutely no help and they are being counterproductive with the bad advice.

3 hours ago, Turtles said:

I've applied through TD and waiting to hear back from them now.

Quick question, on the TD web page, it says:

Quote

Credit limit amount:

  • Full-time students: up to $20,000 per year

Is that what they offered or is the limit different for Law School? Also, did they offer Prime + 0 as it says on that website? 

Edited by robobrain
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2 minutes ago, robobrain said:

Sorry to hear that Scotia is absolutely no help and they are being counterproductive with the bad advice.

Quick question, on the TD web page, it says:

Is that what they offered or is the limit different for Law School? Also, did they offer Prime + 0 as it says on that website? 

TD said their standard terms are prime + 0% with 125 limit, though I don't know if it's specific to JD/MBA or pure JD too.

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36 minutes ago, harveyspecter993 said:

 

I don't understand. Did they want you to have a higher utliziation ratio on your credit cards?

Paradoxically, by closing my oldest (unused) accounts and lowering my limits (increasing utilization), which would lower my credit score, I would be increasing my creditworthiness in their eyes. 

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34 minutes ago, Turtles said:

Paradoxically, by closing my oldest (unused) accounts and lowering my limits (increasing utilization), which would lower my credit score, I would be increasing my creditworthiness in their eyes. 

When I was applying, Scotia made me close my credit accounts (even my scene visa oddly). But I got 10k on two new credit cards.

At least when I applied it was standard to have to close all your pre-existing credit cards. Did they make such a request of you?

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45 minutes ago, harveyspecter993 said:

When I was applying, Scotia made me close my credit accounts (even my scene visa oddly). But I got 10k on two new credit cards.

At least when I applied it was standard to have to close all your pre-existing credit cards. Did they make such a request of you?

Before applying, they told me that if existing credit was an issue for the loan adjudication team, they'd approve me conditional on closing/reducing existing credit. I had asked before applying because I was happy to proactively lower my limits and wait to ensure I wasn't denied for that reason, but they advised me to apply and only lower limits if they asked as a condition of approval.

Now, they've denied me citing existing credit cards limits as the issue (despite being unused / easily reducible). I've again offered to lower my limits, because that's such an easy solution to mitigate their concerns, but they said I wouldn't be approved because of that recent history of having lots of (unused) accessible credit / tradelines. There is seemingly nothing I can do to mitigate their concerns. They won't even consider my income as context to my existing credit, so whether you go in with $0 income and $30k in credit limits or $100k income with $30k in limits, both are viewed with the same lens. 

I'm hopeful for TD, at the very least, because they asked for my income and scholarships as part of the application, so I'm hoping context will be applied versus Scotia's streamlined process that ignores it.

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6 minutes ago, Turtles said:

They said I wouldn't be approved because of that recent history of having lots of (unused) accessible credit / tradelines.

Did you churn credit cards? 

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10 minutes ago, Turtles said:

Before applying, they told me that if existing credit was an issue for the loan adjudication team, they'd approve me conditional on closing/reducing existing credit. I had asked before applying because I was happy to proactively lower my limits and wait to ensure I wasn't denied for that reason, but they advised me to apply and only lower limits if they asked as a condition of approval.

Now, they've denied me citing existing credit cards limits as the issue (despite being unused / easily reducible). I've again offered to lower my limits, because that's such an easy solution to mitigate their concerns, but they said I wouldn't be approved because of that recent history of having lots of (unused) accessible credit / tradelines. There is seemingly nothing I can do to mitigate their concerns. They won't even consider my income as context to my existing credit, so whether you go in with $0 income and $30k in credit limits or $100k income with $30k in limits, both are viewed with the same lens. 

I'm hopeful for TD, at the very least, because they asked for my income and scholarships as part of the application, so I'm hoping context will be applied versus Scotia's streamlined process that ignores it.

This sort of sounds similar to how banks get skittish when they see that an applicant has a lot of recent credit inquiries. The fact that the debt is untapped is not the issue. The underwriters are making assumptions about you (unfair they may be)  because  you've taken out a lot of credit lines.

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Turtles I'm sorry regardless. I can't imagine how tough this might be. I'm legitimately rooting for you to go to law school. Education should never be unattainable because of wealth background. It really is time to make Ontario more like Quebec and less like the US, though Ford would probably scoff at me for saying that.

Good luck. Please keep updating. Quote or mention me when you do since I don't check this forum often.

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8 minutes ago, harveyspecter993 said:

This sort of sounds similar to how banks get skittish when they see that an applicant has a lot of recent credit inquiries. The fact that the debt is untapped is not the issue. The underwriters are making assumptions about you (unfair they may be)  because  you've taken out a lot of credit lines.

Yep, their model likely assumes I may max out the credit available to me (for debt service calculation purposes) and/or tests whether I have recent credit-seeking behavior. Which is why I was happy to close extra credit in advance of applying, yet was told not to, and would be happy to close it as a condition of the loc. But it's worth pointing out I haven't had any new credit activity this year, and my employment is stable and my utilization hasn't changed, so it's not like I'm spiraling to bankruptcy to signal a skittish response. I had 5 credit-related inquiries on my Equifax for the past 3 years. 

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Scotiabank pulls from TransUnion. Might be worth checking that report instead of the Equifax one.  

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