@Scuba Steve is correct. Don't buy the bank's product (mutual funds) buy the bank (stock). Not only is it pretty safe it likely pays a dividend.
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Mortgage Rates
- Thread starter ToSlow
- Start date
You make that sound like a bad thing.
Mad Mike
Well-known member
If I were to do that I'd look at selling and relocating into a similar abode in a lower cost location.
If I could convince my wife to retire and move, I'd sell, move north to a similar house and invest the remaining dumpster of cash.
Then I'd follow the geese.
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Mad Mike
Well-known member
I wouldn't do that.
Banks monitor unsecured credit closely. Credit apps are reported in real-time, so each application would show previous apps.
If you pulled the trigger and accepted multiple locs, good chance you tour banks will call your loc, or reign in credit limits or raise your interest rates substantially.
All reflect badly on your credit.
Nothing was called back. My income more than covered that much credit. The banks were none the wiser that I quit my job after I accepted all the LOCs. As for the interest rate, they were probably sh!t because the LOCs were unsecured. Not that it mattered, I never once dipped into it. It was just a safety net that I luckily didn't have to use.
Depends on your circumstances.
I took all the credit that was offered to me and went off the grid for close to a decade.
Came back and had an almost perfect FICO score...
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Mad Mike
Well-known member
I'm an experienced salesman too. Good salesmen can tell when buyers are untruthful and use that to their advantage.
My favorite part of buying is when I stop and ask a sales person... what's in this for you? some squirm, some lie, some are cool and brutally honest.
I have fun with the liars.
Mad Mike
Well-known member
I don't know how long ago that was, today banks watch credit shoppers in real-time (those either more than one open active credit app). Every credit application drops your credit score immediately, it adjusts back over time if you don't get approved or don't take a credit offer. A decade back, banks reported when you accepted credit, not when you applied. This made it possible to setup and pull the trigger on multiple locs without tipping the banks. Today they report applications electronically in real-time.Nothing was called back. My income more than covered that much credit. The banks were none the wiser that I quit my job after I accepted all the LOCs. As for the interest rate, they were probably sh!t because the LOCs were unsecured. Not that it mattered, I never once dipped into it. It was just a safety net that I luckily didn't have to use.
Depends on your circumstances.
I took all the credit that was offered to me and went off the grid for close to a decade.
Came back and had an almost perfect FICO score...
Unsecured credit has either stupid rates (credit cards, Fairstone, MoneyMart) or prime+ rates that will increase as your credit score drops, so every app can increase the cost of credit on subsequent applications.
Car salesmen know how this works, they ask prospects to do a credit app early in the process. Partly to qualify a buyers spending limit, partly to advantage themselves by making your next dealer app more expensive.
Banks identify credit shoppers. If your app or score gets your app reviewed by a person, and you didn't disclose equating credit, they mark your bank profile, after that any credit app will be adjucated by an underwriter instead of a computer. Underwriters are cautious.
Advice. Don't do multiple concurrent credit applications, and don't mislead banks by not disclosing existing credit. They will find out, they don't always pay nice.
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My credit score got messed up just by using my credit cards no payment for 6 months or equal installment for 6 months plan. It went from a perfect 900 all the way down to 835 for no real reason.
Sent from the future
Sent from the future
I hate conversations about credit , I have them almost weekly with the same clients LOL . I’m not questioning your credibility, I’m questioning your credit ability……
My favourite, if you cut me off I’ll buy from someone else !! Ok let me write you a letter of recommendation….
Sent from my iPhone using GTAMotorcycle.com
My favourite, if you cut me off I’ll buy from someone else !! Ok let me write you a letter of recommendation….
Sent from my iPhone using GTAMotorcycle.com
Which still isn't too shabby. I think a whole lot of people are under 800
There's a difference between hard credit inquiries and soft credit inquiries on your FICO/Beacon score.
If a bank wants to pre-approve you for credit, they do a soft pull and you're granted credit without it affecting your score. This was my case. I had decades of history with my banks. They knew my assets and income and pre-approved me for a boatload of credit.
As for credit being evil, blah blah blah. Of course it is - if you're using it to buy unnecessary things. Like motorcycles.
But my advice for loading up on credit as a safety net still stands. If you are expecting any major life changes, like quitting a job (as it is the topic at hand), or facing the prospect of getting laid off, then it's better to apply for credit while you are still employed. Hopefully, you'll never need to use it, but trying to apply for credit when you have no income is virtually next-to-impossible.
A safety net works better when it's laid down before you go up on the tight rope, as opposed to when you're already free-falling.
Yeah, a credit score over 800 is still in the top 20th percentile of the population.
When we got back to Canada a few years ago, I changed credit card companies and the bank did a hard pull for the CC application. Since it was initiated on my end, and with a bank I never dealt with, my credit score dipped down to 874. As an aside, it's been over three years now, and that "presence of inquiry" is still on my record. It'll stay on for six years and I won't go back to 900 till then...
A few weeks later, I bought a truck and wanted to take advantage of the 1.9% finance rate as opposed to paying cash. I warned the sales guy that there was already a recent inquiry on my record. He laughed and said as far as he was concerned, I had perfect credit. Anything over 700 is an automatic credit approval. Anything under ~600 and the finance company may have to ask for co-signers -- but the sales team would still move heaven and earth to try to get the deal done...
Those car sales guys... Always looking out for your best interests!
FICO (Fair, Isaac and COmpany) score is a measure of credit worthiness. It's calculated based on your credit re-payment history (including bankruptcies and delinquincies), % of credit utilization, age of your credit accounts (brand new accounts lower your score, older ones increase it) as well as credit inquires. It's ranked from 300-850 with 300 being "stay DF away from this person. If you give them money, you'll never see it again" to 850 being "trust this person with your first-born".
It's used by all the credit bureaus. If you're an ex-banker from the 90s, you should already be familiar with it if you're in the credit department. I believe it was introduced in the late 80s.
Beacon (now renamed to Pinnacle) is another credit scoring system similar to FICO, but used by different credit bureaus. It goes up to 900 ("this one goes to 11"?) In my experience as a retail user, we see Beacon/Pinnacle in Canada more than FICO. However, I suspect vendors use an entirely different system that's not available to retail customers.
If you're an Internet banking customer, TransUnion has an agreement with several banks (I know for sure Royal and Scotia offer this) to allow you to see your Beacon/Pinnacle score. It should be an option on your home screen when you login. It looks like this:
ifiddles
Well-known member
@Lightcycle thanks...never heard of them...and yeah, I was in the credit department both in a branch and at head office, but we always used Equifax...I'm with TD and do online banking via computer, not my phone...I haven't seen that Beacon/Pinnacle score anywhere...I'll have to search on how to get my score somewhere...now I'm curious
@Lightcycle thanks...never heard of them...and yeah, I was in the credit department both in a branch and at head office, but we always used Equifax...I'm with TD and do online banking via computer, not my phone...I haven't seen that Beacon/Pinnacle score anywhere...I'll have to search on how to get my score somewhere...now I'm curious
Yeah, you're right. I'm a TD customer as well, and they don't offer it on EasyWeb.
There are a couple of online options available:
Credit Karma
Intuit Credit Karma offers free credit scores, reports and insights. Get the info you need to take control of your credit.
www.creditkarma.ca
Check Your Free Credit Score in Canada
Get your free credit score in Canada from Borrowell. It takes less than 3 minutes to check your credit and won't hurt your score.
borrowell.com
You'll need to confirm a lot of your private information, as well as provide a cell number to etablish your identity.
ifiddles
Well-known member
@Lightcycle thanks...I just found borrowell and was curious if it was legit...thanks for mentioning them...
Apparently not always.
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