$5000 credit card for student with no credit history?

[M@rk]

Currently I have a no-fee BMO account and no credit card (of my own).

But I recently saw the Scotia Professional Student Plan (http://www.scotiabank.com/cda/content/0,1608,CID9887_LIDen,00.html) , which offers:

-Unlimited use and all service charges waived + free cheques
-Line of credit via overdraft
-No-fee 1% moneyback Visa with $5000 pre-approved limit

I need a high-limit card to pay tuition, and want to use it to build up credit. With just tuition and books alone, I could put 10K on the card every year, of which I will leave no balance, so I think it will really help.

It seems like an awesome deal, but are there any drawbacks? Would I actually get approved for the Visa? I only have $14 in a chequing account that's about one year old. I have (officially) never had any income in my life, aside from about 14K in scholarships that was reported on my 2005 taxes, but that's long gone by now.

Another question for all you knowledgable people: will having the extra chequing account with overdraft actually lower my credit score even if I don't use it? And there's nothing wrong with having 2 chequing accounts at 2 different banks, right?

Thanks, guys!

[tmpz]

I tried signing up @ Scotia for a credit card with no income a while ago. It was rejected. You need a source of income otherwise, no credit card. Maybe you can get someone like your parents to co-sign.

[nolookingca]

I tried signing up @ Scotia for a credit card with no income a while ago. It was rejected. You need a source of income otherwise, no credit card. Maybe you can get someone like your parents to co-sign.

Maybe there's an exception in this case since it's only for professional students?
Scotia Professional Student Plan has been designed for students, who are Canadian citizens or landed immigrants, enrolled in an academic program at a Canadian university leading to a professional degree in medicine, dentistry, veterinary medicine, chiropractic, optometry, pharmacy, law or law and MBA combined.

[tkyoshi]

Currently I have a no-fee BMO account and no credit card (of my own).

But I recently saw the Scotia Professional Student Plan (http://www.scotiabank.com/cda/content/0,1608,CID9887_LIDen,00.html) , which offers:

-Unlimited use and all service charges waived + free cheques
-Line of credit via overdraft
-No-fee 1% moneyback Visa with $5000 pre-approved limit

I need a high-limit card to pay tuition, and want to use it to build up credit. With just tuition and books alone, I could put 10K on the card every year, of which I will leave no balance, so I think it will really help.

It seems like an awesome deal, but are there any drawbacks? Would I actually get approved for the Visa? I only have $14 in a chequing account that's about one year old. I have (officially) never had any income in my life, aside from about 14K in scholarships that was reported on my 2005 taxes, but that's long gone by now.

Another question for all you knowledgable people: will having the extra chequing account with overdraft actually lower my credit score even if I don't use it? And there's nothing wrong with having 2 chequing accounts at 2 different banks, right?

Thanks, guys!

I don't think overdraft actually shows up on your credit report. I have overdraft with TD Canada Trust for over a year now and the last time i checked my report it didn't show up.

Now if it did, it should help your score considering you don't abuse it.

[Katharyna]

Having more than a bank account isn't an issue at all, I've had more than 3 accounts at different banks at the same time, and it does not make any difference at all. Overdraft won't make a big difference either if you don't use it.

Now if you plan on using your VISA to build up your credit, and plan on keeping your balance at zero, I don't think you necessarely need a 5k limit to pay off your 10K tuition, since you say you plan on paying it off... As soon as your bill comes in, you pay it and the credit becomes available again.

Because with 14$ assets and no income, unless you are studying in a high profile job with expectancies of a good salary later on, it might be difficult for you to be pre-approved for 5K. You may have to start with a lower limit, than increase it as you go.

[isleepinadrawer]

i highly doubt they will aprove you if you have 0 credit history

you should start with a bmo mosiak mastercard, maybe they'll give you a sizeable limit since you bank with them.

you can always get an LOC with bmo assuming you have someone to co-sign it

[M@rk]

I don't know... the site seems to imply that any student studying in the eligible programs are automatically approved. But I'm not sure how realistic this is.

Now if you plan on using your VISA to build up your credit, and plan on keeping your balance at zero, I don't think you necessarely need a 5k limit to pay off your 10K tuition, since you say you plan on paying it off... As soon as your bill comes in, you pay it and the credit becomes available again.

The problem is, half the tuition is paid in Sept. and the other half in Jan., so that means I'm going to putting about $5000 on the card in one month.

[isleepinadrawer]

i openned an rbc last month

http://www.rbcroyalbank.com/RBC:RL02h471A8cAANjAjHI/products/personalloans/rcl_for_students_pro.html


when i applied they ran a credit check on me and asked me to list all my assets. I qualified for a 25k loc with no co-signer and a 10k visa. I dont know what my fico score is, but i do know i had 41month of R1 credit rating at the time.

[forgamez]

I don't know... the site seems to imply that any student studying in the eligible programs are automatically approved. But I'm not sure how realistic this is.


If you are in one of these faculties, you will be approved guranteed. If you are not, you won't be able to get this card.

The banks love to get med or pharmacy or law students as customers, as it pays off in the long run if they can get them now as loyal customers. You should see the rates they get on loans and lines of credit. My pharmacy student friend got like $25,000 credit line per year, and he had the absolutely worse credit ever. (And $25,000 is a pretty small amount. Professional students could easily get more)

The banks will make their money when these students want a mortgage for their house or a business loan for their practice.

[M@rk]

i openned an rbc last month

http://www.rbcroyalbank.com/RBC:RL02h471A8cAANjAjHI/products/personalloans/rcl_for_students_pro.html


when i applied they ran a credit check on me and asked me to list all my assets. I qualified for a 25k loc with no co-signer and a 10k visa. I dont know what my fico score is, but i do know i had 41month of R1 credit rating at the time.

My total assets are $14 and I have no credit history :razz:

I don't care much about the bank account or LOC, I just need a high-limit card that gives 1% cashback, which I know is hard to come by in my situation. Anything less than 1% and I'm better off using my dad's CIBC Visa Dividend.

Actually, on a related note, I've been told that the credit score (provided it's not really bad) doesn't matter at all to banks when you apply for mortgage if you have a relatively comfortable (70K+) income. Is this true?

If you are in one of these faculties, you will be approved guranteed. If you are not, you won't be able to get this card.


Yes, I am in pharmacy right now. I was sort of thinking the same, but wasn't sure.

[isleepinadrawer]

just because youre in a professional degree, doesnt mean youre going to get automatically approved. the only benefits to the professional degree is that the limits are higher

you're still going to need a credit history

[M@rk]

just because youre in a professional degree, doesnt mean youre going to get automatically approved. the only benefits to the professional degree is that the limits are higher

you're still going to need a credit history

:( that's not what I wanted to hear

I would just ask the bank, but the nearest branch is not convenient for me right now, and getting someone on the phone is so hard.

[thebigcmb]

I really don't think your credit history matters for the Scotia Professional Student Plan.

I recently graduated and used the plan for three years. Like a previous post mentioned, they just want to get their claws into professionals because of the long-term benefits. At my school, it was integrated into the financial aid system. I'm pretty sure anyone in the program was automatically eligible.

While I did have a credit history and decent credit score before starting the professional program, it would not have normally been nearly good enough to warrant the tens of thousands in the unsecured line of credit they gave me.

Mind you, I didn't bother ever applying for the credit card since I already had one with a better reward program.

BTW, you can pay your tuition with credit card? Sweet!

[isleepinadrawer]

paying your tution with your cc isnt something new as far as i know? sure beats lining up for hours at the registars office

i just cant see a bank willing to lend out to someone with 0 credit history, barring the fact that they are in a professional degree

OP, i suggest just applying anyways and seeing what happens. whats the worst that can happen? you get neclined.

[M@rk]

I really don't think your credit history matters for the Scotia Professional Student Plan.

I recently graduated and used the plan for three years. Like a previous post mentioned, they just want to get their claws into professionals because of the long-term benefits. At my school, it was integrated into the financial aid system. I'm pretty sure anyone in the program was automatically eligible.

While I did have a credit history and decent credit score before starting the professional program, it would not have normally been nearly good enough to warrant the tens of thousands in the unsecured line of credit they gave me.

Mind you, I didn't bother ever applying for the credit card since I already had one with a better reward program.

BTW, you can pay your tuition with credit card? Sweet!

Thanks, I guess I'm just going to try applying.

i just cant see a bank willing to lend out to someone with 0 credit history, barring the fact that they are in a professional degree

OP, i suggest just applying anyways and seeing what happens. whats the worst that can happen? you get neclined.

I just don't want them to give me the bank account and not the Visa, and me having to go through the trouble of cancelling.

BTW, how does the online application process work? How long does it take before they determine if they want to accept you?

[blink]

Thanks, I guess I'm just going to try applying.

I just don't want them to give me the bank account and not the Visa, and me having to go through the trouble of cancelling.

BTW, how does the online application process work? How long does it take before they determine if they want to accept you?

I suggest working with the branch that deals specifically with pharmacy/other professional students. Many times other employees have no idea what you're talking about and you may jeopardize being approved.

It is not uncommon for medical students to get $150k+ LOCs at prime without a co-signer. I imagine if you have no credit history whatsoever, they may not give you the full amount - be that for the LOC (which you do not seem interested in) or the CC limit.

I *wish* I could put my tuition on my credit card (only certain universities allow you to do it and not mine). $16k would give me a hefty amount of benefits.

[M@rk]

I *wish* I could put my tuition on my credit card (only certain universities allow you to do it and not mine). $16k would give me a hefty amount of benefits.

That sucks, so do you have to line up and pay by cheque or something?

I just pay tuition online using a CC, and it's instantly done, and I get 1% using my dad's dividends visa. But thought it might benefit my credit to start charging that stuff on my own card.

[urameatball]

um, 5k creditcard is LOW for professional students.
most of them are already approved for 6-digit LOC's.

[thebigcmb]

That sucks, so do you have to line up and pay by cheque or something?
I was still able to pay online as a "bill payment" from my chequing account. You could also do it at an ATM.

I'm not jealous because of lining up, rather because I could not get the reward points from my credit card.

[eliteblaze]

most universites don't let you pay via CC.. if you think about it they have to charge you the extra processing fee as part of your tuition to balance their books.

I had a 5 grand limit on 2 credit cards a year after one year of credit history + a internship. I'd say it's plausible for prof students.

[forgamez]

I just don't want them to give me the bank account and not the Visa, and me having to go through the trouble of cancelling.



Don't worry. The banks want you to have the VISA card pretty badly. Youl will definately get it.

My suggestion to you is to go to your local branch, and talk to one of the personal bankers and have this account setup for you. They will process it instantenously. Plus, having a banking relationship with one of the personal bankers is extremely useful, as whenever you need something done instantly, they can take care it for you right away, with no hassles. (I bought a car and wanted to put as much money on my VISA as possible. Using online banking to pay off the card was too slow, so I just called my banker and he took care of it.)

And don't think they won't want to give any attention to you because as a professional student, you are one of the most coveted customer types (next to high net worth clients)

[convoluted]

In my experience, Scotiabank has the stingiest rules for giving out credit. I personally still bank with them, but I was an employee there via co-op and was STILL denied a CC for $1000. (no bad history) I eventually just settled with their student visa even though I worked full time. Later, when I applied to get a real non-student visa, they still asked me if I was a student. I merely said "I work full time."... I did not answer her question, because if I did, I probably would have been given a thumbs down too.

[trusoulja2g]

For professional students, getting credit is easy. At least $50,000 is usually no problem. Considering that law school, med school, MBA, etc. now costs over $50K including living expenses, this is the only way most students can afford it.

If you are indeed a professional student, RBC is probably the loosest on giving credit. No cosigner required, almost everyone approved.

[eliteblaze]

I thinkg at rbc prof stud=60K income

[M@rk]

Don't worry. The banks want you to have the VISA card pretty badly. Youl will definately get it.

My suggestion to you is to go to your local branch, and talk to one of the personal bankers and have this account setup for you. They will process it instantenously. Plus, having a banking relationship with one of the personal bankers is extremely useful, as whenever you need something done instantly, they can take care it for you right away, with no hassles. (I bought a car and wanted to put as much money on my VISA as possible. Using online banking to pay off the card was too slow, so I just called my banker and he took care of it.)

And don't think they won't want to give any attention to you because as a professional student, you are one of the most coveted customer types (next to high net worth clients)

Thanks for the advice! I'll definitely go to the branch instead of applying online, now that you mention it. It's probably easier and faster that way.

[ynchu]

Maybe there's an exception in this case since it's only for professional students?

I am pissed, what makes them thinking that Computing Science and Engineers are not professional students?

Lawyers? Give me a break. What benefit do they bring to the society in whole?

[convoluted]

I am pissed, what makes them thinking that Computing Science and Engineers are not professional students?

Lawyers? Give me a break. What benefit do they bring to the society in whole?

Clearly they mostly consider what your income would be after graduating would be in the 6 digit range... But it sounds like phd students do not qualify either, although on their application page, you are allowed to input your own program.

They also do not mention exclude teachers, social workers as well.

[isleepinadrawer]

rbc prof studies includes engineering

rbc likes to throw money around

[M@rk]

I am pissed, what makes them thinking that Computing Science and Engineers are not professional students?

Lawyers? Give me a break. What benefit do they bring to the society in whole?

I don't think it has anything to do with benefiting society. It's just that the programs they mentioned (except law?) pretty much offer 100% chance of finding high-paying employment.

lol, and I can understand why PhD students aren't included...

[m85d1]

most universites don't let you pay via CC.. if you think about it they have to charge you the extra processing fee as part of your tuition to balance their books.

I had a 5 grand limit on 2 credit cards a year after one year of credit history + a internship. I'd say it's plausible for prof students.

It might be already built-in when they offer this option.

So if you don't use it, you might just end up paying the extra bucks for nothing. :)

[eliteblaze]

didn't bold the "as part of your tuition" part eh ;)