Canadian Money Forum banner

1 - 6 of 6 Posts

·
Registered
Joined
·
2 Posts
Discussion Starter #1
Hi everyone,

I am looking at trying to get more line of credit headroom (currently only have a 30k one) mainly for the flexibility it allows me for deals and emergency funds and I remember reading a forum post somewhere in which the person said she booked appointment with as many banks and credit unions as she could in a single day as applying for multiple loans in a row would be considered "shopping" and lessen the impact on the credit score, as well as banks wouldn't see you applied for other loans as it wouldn't have time to update. What are your thoughts? Has anyone tried to apply to several banks in the same day and if so what was the impact on your credit score? My credit score is pretty good (over 800) and I do like the approach of "trying them all" as opposed to take the first no as the answer, but I want to make sure I would annihilate my credit score by doing so.
 

·
Registered
Joined
·
3,625 Posts
Yes I do PPC for my business and recently applied for three additional credit cards because the products had travel points and gave bonus points to existing Aeroplan acct.I see the fico dropped 30 points but not an issue for me ,if you are under 700 that could affect you negatively.
 

·
Registered
Joined
·
1,134 Posts
Applying for credit from multiple lenders in one day and not having it affect your credit seems like a myth to me. A credit inquiry is a credit inquiry. And who's to say all the lenders will pull your credit bureau on the same day?

Anyways, I question why you would want to apply to as many lenders as possible. In essence, seek the product you need and stick to that one lender. Ideally, stick with your current bank. If you get declined, you will most likely get declined elsewhere as banks tend to have similar criteria for qualification.

Additionally, you already have a $30k LOC - I must assume its available. It makes me question how much more flexibility do you need and how much emergency funds do you really require?
 

·
Registered
Joined
·
3,625 Posts
For me I spend $300,000+ a year on ppc i want Aeroplan points and sometimes the cards are locked on a daily basis especially by TD for suspicious fraud activity .I use about 10 companies for PPC but mostly advertise.com .My husband and i each have Aeroplan with CIBC and TD but the amount we churn through now enough ,as it is i have to pay them off midway through the month to keep credit available.I realize I am not normal user though lol
 

·
Registered
Joined
·
2 Posts
Discussion Starter #5
Sorry for the late reply I didn't get the notifications somehow :(
I am planning to apply to multiple lenders in case I get rejected (which I assume will happen). The issue I have experienced in the past trying to get credit is my high amount of mortgage debt (1M ish), even though my credit score is in the 800's and all my properties NET cash flow are positive it seems to scare some banks away, now you are right most have similar criteria but they don't have the same criteria and that's an important distinction. I am also worried they might pull credits on different days at the bureau which is why i'm really curious how it would affect the score given it's still "shopping around".
As for why i'm looking for a bigger LOC, yes the full 30k is presently available however I would like to gather around 100k maybe a little more and there is a few reasons for this:
1. Of course emergency funds over my reserve fund are (you never know...)
2. Renovation money, especially to finance improvements until a mortgage re-financing
3. Flexibility in seller financing purchases/private lenders, for example having the possibility to still purchase a property if private financing falls apart or if seller requires bigger cash down etc
4. Ability to use LOC as a method of financing for a flip (less fees and delays) or lower priced property (which may not be financed by bank)



Applying for credit from multiple lenders in one day and not having it affect your credit seems like a myth to me. A credit inquiry is a credit inquiry. And who's to say all the lenders will pull your credit bureau on the same day?

Anyways, I question why you would want to apply to as many lenders as possible. In essence, seek the product you need and stick to that one lender. Ideally, stick with your current bank. If you get declined, you will most likely get declined elsewhere as banks tend to have similar criteria for qualification.

Additionally, you already have a $30k LOC - I must assume its available. It makes me question how much more flexibility do you need and how much emergency funds do you really require?
 

·
Registered
Joined
·
1,134 Posts
So one thing to keep in mind is that if you're applying for an unsecured LOC, then you are limited to $50k. I haven't seen LOCs higher than that with no security.

What you really need is a HELOC. Determine how much equity you have and inquire on which lender is willing to extend. HELOCs are usually capped at 80% LTV where the LOC portion does not surpass 65%.

Other than that, you should have no issues obtaining credit for an unsecured LOC. Given you're credit score, banks will be eager to approve you credit. You just won't get the limit you want.
 
1 - 6 of 6 Posts
Top