Line of Credit and Personal Loans

[jcl]

Okay I guess I have fairly new credit, 2-3 years old now, never have missed a payment, don't carry balances, have a VISA and a MC, cell phone bill, own a car, been working with the same company for almost 2 years now, make 40k a year.

I went for a LOC yesterday of 10k , I didn't get approved, supposedly my BEACON score is really good, but my credit score at CIBC is low??????

I just checked equifax it was a 770/800

She then goes, oh you have 17 hits on your credit, this was since 2002, for a cell phone, computer, tried getting a loc few years ago, things of that nature.

I only have '1' hit int he past year, that was recently for a PC financial banking account.

And the PB at CIBC also said, It may be your hits, or it may be because I have only been banking with CIBC for 1 year, what tyhe hell does that have to do with anything????

Im really upset, ididnt get approved, what does it take?

[sudenm]

many times you can see brain less people ... you can try again with some other Representative you should be getting it approved cosidering your credit history !
I think when they approve the LOC they calculate your savings vs your liabilities ..

[jcl]

I'm taking the loan out for a used vehicle for my wife, becuase she has NEW Credit.

Anyhow, the car that we were goign to buy privately, actually has a $4000 balance with HONDA, so the owner called today, and we can transfer everythign into my name, if I get approved....then cut the private seller a cheque for the remainding 4k.

Do you think I'll get approved for the financing at HONDA because it is SECURED?

Im going tomorrow, I really hope we can do it, my wife just got a new job, and she needs a car, and this is a great deal on one!

[tkyoshi]

I'm taking the loan out for a used vehicle for my wife, becuase she has NEW Credit.

Anyhow, the car that we were goign to buy privately, actually has a $4000 balance with HONDA, so the owner called today, and we can transfer everythign into my name, if I get approved....then cut the private seller a cheque for the remainding 4k.

Do you think I'll get approved for the financing at HONDA because it is SECURED?

Im going tomorrow, I really hope we can do it, my wife just got a new job, and she needs a car, and this is a great deal on one!

Well in terms of Honda i don't think you'll have a problem at all. Car companies are generally fine with pretty much anyone unless you have bad credit, etc.. but anyone with decent (At least 650) credit should go through fine.

[st7860]

Okay I guess I have fairly new credit, 2-3 years old now, never have missed a payment, don't carry balances, have a VISA and a MC, cell phone bill, own a car, been working with the same company for almost 2 years now, make 40k a year.

I went for a LOC yesterday of 10k , I didn't get approved, supposedly my BEACON score is really good, but my credit score at CIBC is low??????

I just checked equifax it was a 770/800

She then goes, oh you have 17 hits on your credit, this was since 2002, for a cell phone, computer, tried getting a loc few years ago, things of that nature.

I only have '1' hit int he past year, that was recently for a PC financial banking account.

And the PB at CIBC also said, It may be your hits, or it may be because I have only been banking with CIBC for 1 year, what tyhe hell does that have to do with anything????

Im really upset, ididnt get approved, what does it take?


screw the line of credit

just apply for a Capital one low rate mastercard, no annual fee. a mastercard is easier to get than most line of credits.

the interest rate is 6.99%, non promotional.

what are the credit limits on your visa and mastercard? the LOC trouble may be because your credit limits are too low. if you get one credit card increased to something like 10,000 to 15,000, it usually makes it easier to apply for bigger limits with other products. the hardest part is to get the first one increased.

the CIBC CSR told you about '17' hits causing a problem? that CSR is a 100% rookie or noob.

for someone relatively high class such as yourself, 17 hits in 4 years is NOTHING. you said yourself, your credit is about 770. the only people that get a significant penalty from tons of credit hits are substandard people, in other words, below 700, below 650, etc. its a weighted system.

your inability to get that Line of Credit is probably because your credit limits on your cards are too low, or you reported your income too low, or some other bug in CIBCs system.

[charger]

screw the line of credit

just apply for a Capital one low rate mastercard, no annual fee. a mastercard is easier to get than most line of credits.

the interest rate is 6.99%, non promotional.

what are the credit limits on your visa and mastercard? the LOC trouble may be because your credit limits are too low. if you get one credit card increased to something like 10,000 to 15,000, it usually makes it easier to apply for bigger limits with other products. the hardest part is to get the first one increased.

the CIBC CSR told you about '17' hits causing a problem? that CSR is a 100% rookie or noob.

for someone relatively high class such as yourself, 17 hits in 4 years is NOTHING. you said yourself, your credit is about 770. the only people that get a significant penalty from tons of credit hits are substandard people, in other words, below 700, below 650, etc. its a weighted system.

your inability to get that Line of Credit is probably because your credit limits on your cards are too low, or you reported your income too low, or some other bug in CIBCs system.


Be careful with credit cards, they will screw you given any chance. It's useful to have a low interest LOC as a "hedge" in case you hit a bump in the road and don't want to dip into your long term protected savings.

[st7860]

Be careful with credit cards, they will screw you given any chance. It's useful to have a low interest LOC as a "hedge" in case you hit a bump in the road and don't want to dip into your long term protected savings.

Yes of course,a Line of Credit usually has a lot higher interest rate than a credit card. but also a line of credit usually does not give you a grace period, but that example 6.99% Capital one card does.

[jcl]

screw the line of credit

just apply for a Capital one low rate mastercard, no annual fee. a mastercard is easier to get than most line of credits.

the interest rate is 6.99%, non promotional.

what are the credit limits on your visa and mastercard? the LOC trouble may be because your credit limits are too low. if you get one credit card increased to something like 10,000 to 15,000, it usually makes it easier to apply for bigger limits with other products. the hardest part is to get the first one increased.

the CIBC CSR told you about '17' hits causing a problem? that CSR is a 100% rookie or noob.

for someone relatively high class such as yourself, 17 hits in 4 years is NOTHING. you said yourself, your credit is about 770. the only people that get a significant penalty from tons of credit hits are substandard people, in other words, below 700, below 650, etc. its a weighted system.

your inability to get that Line of Credit is probably because your credit limits on your cards are too low, or you reported your income too low, or some other bug in CIBCs system.


My Mosaik Mastercard has a $1000 limit, and my newly aquired Visa is only about 1 month old, it has a $6000 limit.....

I was only planning on keeping 1 Mastercard and 1 Visa, I'd hate to apply for another credit card :/

[st7860]

My Mosaik Mastercard has a $1000 limit, and my newly aquired Visa is only about 1 month old, it has a $6000 limit.....

I was only planning on keeping 1 Mastercard and 1 Visa, I'd hate to apply for another credit card :/

okay, so that probably explains it. Although you do pay all of your bills on time, but your credit limits are too low. the new $6,000 credit card probably isn't on your report yet because its too new. get a CIBC or TD Bank credit card, those are usually the easiest to get increases with. Its always better to get more increases than you need. This is because even if you're a first class person that pays his or her bills on time each month AND does not carry a balance, the credit report CAN in some situations depending on the billing date show that you have a balance, and that is really bad, especially if your balance is more than half of the credit limit.

basically in plain english, the more credit you have(with low balances) the more credit the banks will throw at you, and you will have an easier time to get a line of credit.


http://www.bayhouse.com/discus/messages/123/655.html?962170897

[jcl]

okay, so that probably explains it. Although you do pay all of your bills on time, but your credit limits are too low. the new $6,000 credit card probably isn't on your report yet because its too new. get a CIBC or TD Bank credit card, those are usually the easiest to get increases with. Its always better to get more increases than you need. This is because even if you're a first class person that pays his or her bills on time each month AND does not carry a balance, the credit report CAN in some situations depending on the billing date show that you have a balance, and that is really bad, especially if your balance is more than half of the credit limit.

basically in plain english, the more credit you have(with low balances) the more credit the banks will throw at you, and you will have an easier time to get a line of credit.


http://www.bayhouse.com/discus/messages/123/655.html?962170897

Gotcha, my Visa is actually with TD......

And we just spoke to Honda,they're being funny about the whole taking over the financing thing, saying we have to wait, and there is going to be a charge etc etc, we need this car like now, my wife starts her job on monday, and its a really good deal we don't want to pass up!

Would you recommend me going for the captiol one mc? do u think they'll give me a 10k limit?

[jcl]

Little update, we called ANOTHER Honda, and the one guy said, ya shoudln't be a problem if the credit is fine ,we do it all the time, the financing manager will return our call shortly, i really hope this goes through! my wife is going off the walls, she needs a car! :)

[st7860]

Gotcha, my Visa is actually with TD......

And we just spoke to Honda,they're being funny about the whole taking over the financing thing, saying we have to wait, and there is going to be a charge etc etc, we need this car like now, my wife starts her job on monday, and its a really good deal we don't want to pass up!

Would you recommend me going for the captiol one mc? do u think they'll give me a 10k limit?

Capital one is quite easy to get credit with. You won't necessarily get 10,000 but since there's no annual fee and the interest rate is 6.99% non promotional, its a good card anyway. basically when you get one card thats really big, then it gets easier to get other big cards. having tons of card WITH balances CAN make it difficult to get a mortgage, but since you pay them off all on time without balances, having tons of cards will increase your score over time as the accounts 'age'. its like wine, a credit report is worth more the older it gets.

[jcl]

Capital one is quite easy to get credit with. You won't necessarily get 10,000 but since there's no annual fee and the interest rate is 6.99% non promotional, its a good card anyway. basically when you get one card thats really big, then it gets easier to get other big cards. having tons of card WITH balances CAN make it difficult to get a mortgage, but since you pay them off all on time without balances, having tons of cards will increase your score over time as the accounts 'age'. its like wine, a credit report is worth more the older it gets.

Okay well here's the deal, if we transfer the financing with honda they'll charge both taxes plus an admin fee.

So our only option at this current time is to give cash to the current owner for her portion.......

and then write a cheque to Honda canada for the remainding balance on the car.

But, im going to take $4500 from my $6000 credit card @12%, and i'll be putting $250 a month until its paid off, which will take less then two years, is this a foolish route to take, or will it be okay as long as I continue to decrease my balance, and not increase.

At this time this is our only option, my wife needs the car Pronto, the owner is getting a lot of buyers.

opinions please....and thank you.

[st7860]

Okay well here's the deal, if we transfer the financing with honda they'll charge both taxes plus an admin fee.

So our only option at this current time is to give cash to the current owner for her portion.......

and then write a cheque to Honda canada for the remainding balance on the car.

But, im going to take $4500 from my $6000 credit card @12%, and i'll be putting $250 a month until its paid off, which will take less then two years, is this a foolish route to take, or will it be okay as long as I continue to decrease my balance, and not increase.

At this time this is our only option, my wife needs the car Pronto, the owner is getting a lot of buyers.

opinions please....and thank you.


12% isn't that bad at all compared to most credit cards with 18 to 20%.

What is important is to continue applying for things a few times a year(thats because having your $6000 card nearly at the limit will make your debt ratio high, but by getting some more credit lines, it will ease up a bit). but only things you think you will get. You said you have TD and BMO. Forget HSBC they are way too cranky. try CIBC and PC Financial. Don't bother with American Express until at least a year passes. Try CITI Mastercard as well, you save 2 cents a litre on petro canada gas that way. from time to time citibank and cibc will send you balance transfer offers that cost about 3% per month for a promotional period of 5 to 6 months, then you can bounce it around.

Also pay as many things as possible with the credit card to generate spending, this matters a lot even if you don't bother collecting airmiles. For things like your Rent or Mortgage that don't accept credit cards, use charge-checks to do it. Some(such as CIBC, TD, and CITI) banks don't charge cash advance fees if you dump money into the credit card first. The purpose of burning money in this manner is to generate spending, so that after 6 months or so, the credit cards on which you're spending all this money will look 'better' and when you call for an increase, they will be more likely to give it to you since the computer tells them you pay it off each month and spend a ton the next month.

[jcl]

12% isn't that bad at all compared to most credit cards with 18 to 20%.

What is important is to continue applying for things a few times a year(thats because having your $6000 card nearly at the limit will make your debt ratio high, but by getting some more credit lines, it will ease up a bit). but only things you think you will get. You said you have TD and BMO. Forget HSBC they are way too cranky. try CIBC and PC Financial. Don't bother with American Express until at least a year passes. Try CITI Mastercard as well, you save 2 cents a litre on petro canada gas that way. from time to time citibank and cibc will send you balance transfer offers that cost about 3% per month for a promotional period of 5 to 6 months, then you can bounce it around.

Also pay as many things as possible with the credit card to generate spending, this matters a lot even if you don't bother collecting airmiles. For things like your Rent or Mortgage that don't accept credit cards, use charge-checks to do it. Some(such as CIBC, TD, and CITI) banks don't charge cash advance fees if you dump money into the credit card first. The purpose of burning money in this manner is to generate spending, so that after 6 months or so, the credit cards on which you're spending all this money will look 'better' and when you call for an increase, they will be more likely to give it to you since the computer tells them you pay it off each month and spend a ton the next month.

Thanks for the quick response, we're planning on getting a mortgage in about 2 years give or take, by then, the $4500 will be paid off, but will it have any affect on us getting a mortgage, if its paid/or closed to being paid off?

Eek, im scared to apply for anymore credit, should I wait a bit after making this purchase before?

Your post makes sense, but I've heard mixed opinions about applying for more credit, makes me nervous, i dont want to mess up my credit history for when it comes time to get a mortgage, because right now my wife's credit is next to nothing, and we're relying on my credit for now.

[st7860]

Thanks for the quick response, we're planning on getting a mortgage in about 2 years give or take, by then, the $4500 will be paid off, but will it have any affect on us getting a mortgage, if its paid/or closed to being paid off?

Eek, im scared to apply for anymore credit, should I wait a bit after making this purchase before?

Your post makes sense, but I've heard mixed opinions about applying for more credit, makes me nervous, i dont want to mess up my credit history for when it comes time to get a mortgage, because right now my wife's credit is next to nothing, and we're relying on my credit for now.

read this, it has a lot of detail on how credit works
http://www.bayhouse.com/discus/messages/123/655.html?962170897

basically your goal is to jack up your credit rating in time for the mortgage in a year or two. the easiest way is to spend everything on the card, including your rent payment(as detailed above). after you get these cards, each one will be counting on your credit report as an open trade line. its like wine. the older they get, the more 'expensive'/'better' they look.


the key thing is keep applying for cards until you have a total of half a dozen and/or until you reach your comfort level. but DO NOT apply for a card you don't think you will get. here's what I suggest, in the following order(from easiest to hardest. when you fill out the application, ALWAYS put the same employer even if you recently changed jobs.

0. you have TD and BMO already
1. apply for capital one. depending on how good they think you are, you will probably either get a 6.99% with no annual fee card, or if you're only average, they will give you a gold card with a $1,000 to $5,000 limit and a $59 annual fee. The annual fee is a waste of money since they don't give rewards points BUT its easy to get and WILL enhanced your credit score. also apply for an MBNA at the same time, no annual fee. its very easy to get one.
2. next month apply for an ordinary CIBC. the dividend classic with no annual fee is good. CIBC gives out credit limit increases very easily.
3. maybe next month, apply for CITIBANK mastercard with petropoints. you get 2cents a litre of of petrocan gas, no annual fee
4. wait a few months, then apply for a Canadian Tire mastercard and a PC financial card.
5. wait a few months, then apply for an American Express Blue with Airmiles, no annual fee
6. apply for HSBC & Royal bank + Vancity LAST. they are the hardest overall, and by this stage, you probably won't need them anyway.



note: if you think you have poor self control, don't let that stop you from getting more credit cards. just put the extra credit cards in a block of ice, or in a safety deposit box at the bank. NEVER cancel a credit card that you don't use,(that is, if there is no annual fee). since its already there, it won't hurt your credit even if you don't use it.

[jcl]

Are you sure that's the right move for me? Applying for more credit cards!

Sounds totally what most people on here say NOT to do, they say only have 1 mastercard/ 1 visa......

[st7860]

Are you sure that's the right move for me? Applying for more credit cards!

Sounds totally what most people on here say NOT to do, they say only have 1 mastercard/ 1 visa......

read up on how the credit scoring system works. applying for tons of stuff CAN affect your score a bit, but its a WEIGHTED system. In other words, for an average working class person such as yourself with no collections on your credit report, its fine, it has almost no affect. More important is paying on time, and how much debt compared to the credit limits you have, which is why getting more cards will make your ratio look better.

since your wife has nearly nothing now, she should apply for something easy like CIBC or capital one, then after getting it, 3 to 4 months later, start a process similar to what you have.

[jcl]

read up on how the credit scoring system works. applying for tons of stuff CAN affect your score a bit, but its a WEIGHTED system. In other words, for an average working class person such as yourself with no collections on your credit report, its fine, it has almost no affect. More important is paying on time, and how much debt compared to the credit limits you have, which is why getting more cards will make your ratio look better.

since your wife has nearly nothing now, she should apply for something easy like CIBC or capital one, then after getting it, 3 to 4 months later, start a process similar to what you have.

She already tried for CIBC, she needs a co-signer....

So you recommend me to give capitol one a shout and see if i approve for their 6.99% card?

and I guess if i got that, I could transfer my balances from my 12% TD to the 6.9......that wouldnt be a problem would it?

[st7860]

She already tried for CIBC, she needs a co-signer....

So you recommend me to give capitol one a shout and see if i approve for their 6.99% card?

and I guess if i got that, I could transfer my balances from my 12% TD to the 6.9......that wouldnt be a problem would it?

your wife needs a cosigner for CIBC? why? is her credit absolutely blank(ie: just turned 19 years old?)

Yes, give capital one a shout too. Both of you can apply for one each(not a joint one). Most likely they will offer your wife the secured one, with a $200 deposit, and a $400 credit limit. And you will probably either get the 6.99% with no annual fee or a gold card with a $59 annual fee but higher interest rate. with capital one, they decline nobody. you can bounce balances back and forth with the charge checks all the time depending on who has the best rate and/or promotional rate. some cards like MBNA have a 1% fee for using charge checks however, but most do not.

[jcl]

your wife needs a cosigner for CIBC? why? is her credit absolutely blank(ie: just turned 19 years old?)

Yes, give capital one a shout too. Both of you can apply for one each(not a joint one). Most likely they will offer your wife the secured one, with a $200 deposit, and a $400 credit limit. And you will probably either get the 6.99% with no annual fee or a gold card with a $59 annual fee but higher interest rate. with capital one, they decline nobody. you can bounce balances back and forth with the charge checks all the time depending on who has the best rate and/or promotional rate. some cards like MBNA have a 1% fee for using charge checks however, but most do not.

She never built any credit, long story, we're only 24 anyhow.

Now, If i get approved for the Capital One 6.9, and want to bounce my balance from my 12%(annual fee of $25) over to the 6.9, would it look bad if I called TD visa and got them to switch my TD Emerald over to a TD Green (NO annual fee) ?? because if im noit using it, or have a balance, i'd hate just to give $25 dollars away every year..

[st7860]

She never built any credit, long story, we're only 24 anyhow.

Now, If i get approved for the Capital One 6.9, and want to bounce my balance from my 12%(annual fee of $25) over to the 6.9, would it look bad if I called TD visa and got them to switch my TD Emerald over to a TD Green (NO annual fee) ?? because if im noit using it, or have a balance, i'd hate just to give $25 dollars away every year..

Yes, thats fine, you can upgrade or downgrade your credit card any time with TD or any other bank. don't cancel it, just downgrade to the basic GOLD SELECT(no annual fee, minimum $5,000 credit limit, but since you have $6,000 already, its fine)

For the car thing, even if you have already paid for it, you could try finding a leasing company. i'm sure in Ontario there are similar companies as this www.ensignpacific.com that will BUY a used car from YOU and LEASE it back to you.

[jcl]

Yes, thats fine, you can upgrade or downgrade your credit card any time with TD or any other bank. don't cancel it, just downgrade to the basic GOLD SELECT(no annual fee, minimum $5,000 credit limit, but since you have $6,000 already, its fine)

For the car thing, even if you have already paid for it, you could try finding a leasing company. i'm sure in Ontario there are similar companies as this www.ensignpacific.com that will BUY a used car from YOU and LEASE it back to you.

Well I just got approved for a 5k Line of Credit with PC financial @ Prime + 2%

YES!