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Turtles

Denied by Scotia, No Idea Why

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15 hours ago, Tagger said:

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

No, they pulled from Equifax and not Transunion. I pulled both proactively and verified that.

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44 minutes ago, Turtles said:

No, they pulled from Equifax and not Transunion. I pulled both proactively and verified that.

That's strange, they looked at my Transunion score last year and their internal credit check tool pulls from Transunion too. 

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16 hours ago, Turtles said:

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. 

FWIW, the reps have very little control over whether or not you’re approved, and the advice you received is in line with the general advice they give students. It’s usually not necessary to close other credit accounts ahead of applying – I know I didn’t have to. 

Something is clearly going on in the back end with Scotia’s loan approval officers, for whatever reason. And it’s unlikely that your rep received any more information than what was relayed to you. 

Either way, apply to the next bank and see what happens. At the end of the day, the packages between the banks are all the same, with the exception of small differences between credit card point systems. 

If you get turned down by another bank, contact your school. Most schools have emergency funding to help handle this kind of issue when it arises, and they’ll work with you as long as you’ve applied to two banks in good faith. 

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FWIW, I'm with Scotia and have been for some time, their service has been....let's call it less than stellar my entire time as a customer, and if I can find a way in the future to switch banks, I'd pretty readily do so. 

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31 minutes ago, BlockedQuebecois said:

FWIW, the reps have very little control over whether or not you’re approved, and the advice you received is in line with the general advice they give students. It’s usually not necessary to close other credit accounts ahead of applying – I know I didn’t have to. 

Something is clearly going on in the back end with Scotia’s loan approval officers, for whatever reason. And it’s unlikely that your rep received any more information than what was relayed to you. 

Either way, apply to the next bank and see what happens. At the end of the day, the packages between the banks are all the same, with the exception of small differences between credit card point systems. 

If you get turned down by another bank, contact your school. Most schools have emergency funding to help handle this kind of issue when it arises, and they’ll work with you as long as you’ve applied to two banks in good faith. 

It was a bit like pulling teeth to get an actual answer because the first rep went silent after the denial and didn't cite any reason (hence the thread). Apparently he was just lazy, because the current rep mentioned she just had to call the loan adjudication team to get the actual details. I was told the first rep "just likes to deal with the cream because he gets so much business and is a busy guy".

The current rep did advise that loan adjudication has been stricter lately due to COVID-19, as Scotia is reeling from payment deferrals on 17% of its mortgage portfolio and 8% of its personal loan portfolio and the serious potential for defaults once payments resume, though that may have just been her trying to make me feel better :) 

In any event, I already applied via TD and I'm just waiting to hear back. If that doesn't work, I have to reach out to the school anyway because a condition of my scholarship is to open a professional student line of credit or strike out at two big banks. I will obviously exhaust all of my options, incl. all of the FIs, adjusting anything on my credit, working part-time, and/or exploring taking a year off to work and save.  

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My experience with Scotia was much more positive than yours. Applied a week ago, got approved today for 135K. It was a seamless process for me. Good luck Turtles, I hope you get your LOC. 

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@Turtles I was in a similar situation to you. Were you asked for a co-signor?

Just pursue this to the end of the line. Keep and screenshot all your correspondence. Get a formal email if you're denied from Scotia/TD. It's a terrible feeling, but Osgoode will interface with you, work with you and work it out. 

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Posted (edited)

Time for an update. 

So I applied to Scotia more than two months ago and it's currently, again, being "reconsidered" after repeated denial. I gave up on Scotia and I've learned I should have much sooner. The reps disappearing whenever things stopped being easy was a red flag and the knowledge gaps between reps was readily apparent. Only the fourth rep I reached out to ever bothered to gather information on why I was denied, and as helpful and attentive as that one rep was, Scotia's streamlined process (no employment/asset/tax info asked) can mean their loan adjudicators in the back office interpret your file without what may be critical context (e.g. working professional, stable income, etc). So if you come in with a $100k pre-law stable income or $0 pre-law income, they don't know, so they will deem your $30k in existing, unused credit card limits as excessive and flag you as credit seeking. It was also sketchy that they repeatedly promised and failed to ever formally (by email/writing) notify me of their decision, which would prevent the average consumer from knowing their recourse (which is why it's a regulatory requirement). 

I applied to TD just last week (TD does verify income/assets/tax information), and I've actually already been approved for 125k at prime and funds have even been unlocked, with a new chequing account opened and fees waived. TD had zero issues with my existing credit and doesn't care if I keep it (I communicated I'm happy to reduce it, but they said it was totally reasonable). TD's process was also completely smooth and virtual, as they have an esigning software for all the documents required.

Scotia's standard offer for my program has a higher credit limit (160k), but that said, not only do I not plan to need anywhere near the full LOC amount, I'm much happier with TD and the overall experience. 

Good news in the end :) Thank you everyone for your support. Hopefully this thread is helpful to anyone with a similar background in the future getting stonewalled and ghosted at Scotia. 

Edited by Turtles
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Posted (edited)
4 hours ago, Turtles said:

I applied to TD just last week (TD does verify income/assets/tax information), and I've actually already been approved for 125k at prime and funds have even been unlocked, with a new chequing account opened and fees waived. TD had zero issues with my existing credit and doesn't care if I keep it (I communicated I'm happy to reduce it, but they said it was totally reasonable). TD's process was also completely smooth and virtual, as they have an esigning software for all the documents required.

I have a similar happy ending to my story too. I went in to TD today, and they approved my application in one hour. I was prepared with all the documents, spoke with the loan officer, very professional, and by the time I got home, I had an e-mail stating my approval and documents ready to be signed.

 

Super glad it worked out for both of us.

Edit: I didn't apply for the full 125k. I only applied for a 100k, and I got it at prime + 0. 

Edited by robobrain
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Yeah, I can't wait to pay off my line and be rid of Scotia. My main bank was/is TD, I only went to Scotia because they would give me more money with no co-sign back in the day. Sounds like they may be tightening up.

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Posted (edited)

Can confirm they are seriously tightening up.

 

My VISA, which came part and parcel with my PLOC back in 2017, is due to expire at the end of the month. I got a letter in the mail today saying that after a review of my file, they have decided not to renew my card.

 

Here's why that makes no sense: my credit score is a little better than it was when I was first issued the card. Back in 2017, it was bad enough that I needed a cosigner for my PLOC. It's not *the greatest* after more-than-the-standard number of years of law school and a below-minimum wage articling job, but it's better than it was. Also, I don't have a single late payment on that card, and only one late payment way back in 2018 on my Amex. So it's a near-perfect credit history with Scotiabank. Oh, and my PLOC is ENTIRELY paid off and the account is closed. And yet, lo and behold, I've been denied renewal of a card I've made regular payments on and use regularly. Figure that one out.

 

Scotiabank is the absolute worst.

 

Anyway, I'm calling tomorrow to talk to my Scotia rep and telling her I'll take my business elsewhere if this isn't resolved. Honestly, I'll probably take it elsewhere even if it is, because to me this is pretty egregious. My credit was good enough for you when I was borrowing $150,000 in a PLOC, but now that it's been paid off, you don't want to keep extending the credit you gave me back then? Screw that noise.

Edited by DavisFromCornerGas
Further clarification

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Posted (edited)

Also worth noting that I somehow managed recently to lease a car worth over $25,000 from Toyota- without a cosigner- with my "so bad Scotiabank won't renew my $5000 card" credit, so... yeah. 🤷‍♂️🤷‍♀️

Edited by DavisFromCornerGas
typo

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5 hours ago, DavisFromCornerGas said:

Oh, and my PLOC is ENTIRELY paid off and the account is closed.

Whao. Good on you. 

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9 hours ago, robobrain said:

Whao. Good on you. 

Thank you, but it wasn't me. I was lucky enough to have a super kind family member who paid it off as a graduation gift. I cried like a baby.

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Posted (edited)
16 hours ago, DavisFromCornerGas said:

Also worth noting that I somehow managed recently to lease a car worth over $25,000 from Toyota- without a cosigner- with my "so bad Scotiabank won't renew my $5000 card" credit, so... yeah. 🤷‍♂️🤷‍♀️

With all due respect, you recently opening a lease on a relatively expensive new (presumably) vehicle may have factored into why you were denied a renewal. The lease + renewal are two large credit hits in close succession which I can see potentially setting off some red flags. 

Edited by LabouriousCorvid
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16 hours ago, DavisFromCornerGas said:

Can confirm they are seriously tightening up.

 

My VISA, which came part and parcel with my PLOC back in 2017, is due to expire at the end of the month. I got a letter in the mail today saying that after a review of my file, they have decided not to renew my card.

 

Here's why that makes no sense: my credit score is a little better than it was when I was first issued the card. Back in 2017, it was bad enough that I needed a cosigner for my PLOC. It's not *the greatest* after more-than-the-standard number of years of law school and a below-minimum wage articling job, but it's better than it was. Also, I don't have a single late payment on that card, and only one late payment way back in 2018 on my Amex. So it's a near-perfect credit history with Scotiabank. Oh, and my PLOC is ENTIRELY paid off and the account is closed. And yet, lo and behold, I've been denied renewal of a card I've made regular payments on and use regularly. Figure that one out.

 

Scotiabank is the absolute worst.

 

Anyway, I'm calling tomorrow to talk to my Scotia rep and telling her I'll take my business elsewhere if this isn't resolved. Honestly, I'll probably take it elsewhere even if it is, because to me this is pretty egregious. My credit was good enough for you when I was borrowing $150,000 in a PLOC, but now that it's been paid off, you don't want to keep extending the credit you gave me back then? Screw that noise.

What's your utilization ratio?

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54 minutes ago, LabouriousCorvid said:

With all due respect, you recently opening a lease on a relatively expensive new (presumably) vehicle may have factored into why you were denied a renewal. The lease + renewal are two large credit hits in close succession which I can see potentially setting off some red flags. 

I leased it a year ago, so I can't see that factoring in? But maybe?

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Posted (edited)

I'm looking through the fine print and that card has a minimum income requirement that I currently don't meet (shout out to us unemployed lawyers during the pandemic 😂 ), and my articling salary didn't take me over that threshold this year either. So maybe that's why? Strange because I didn't have to meet that income requirement to be issued the card, but... that would at least be a reason that makes sense. 

 

Anyhow, to Scotia for a chat with a human I go. Hopefully I'll have more clarity on Monday.

Edited by DavisFromCornerGas

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Sorry to derail further, just wanted to make a last post to update in case it helps anyone in future:

 

Spoke to a Scotia human on the phone today and was told it was because the cards were given to me as a student, for four years, and since I'm no longer a student, they don't renew. (Apparently I actually got my line of credit in 2016, oops, bad memory, haha.) I have to go in tomorrow and switch my account over to a regular one from a student one, and they'll give me my card options then. He said there was nothing in my file that would cause them to cancel the card or anything.

 

This hasn't come up with the Amex yet because a year after I got it, I had a strange charge on the card and got it cancelled and re-issued. So it isn't up for renewal until next year, but I'm told the same thing will happen when it expires.

 

So all's well that ends well, barring something unexpected happening at my appointment tomorrow. Posting because this was something I didn't know, and hopefully I can save someone else the heart attack!

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