Personal Finance

banks and credit ...

  • Last Updated:
  • May 16th, 2012 10:50 pm
Sr. Member
Nov 9, 2008
815 posts
464 upvotes
Ottawa

banks and credit ...

I have bank accounts and a mortgage with PCF... I also have a line of credit with a low limit...that I have never used...

A few weeks ago I asked them to increase my line of credit limit, thinking I may need this one day and it's better to apply now, when I dont need it... anyway, they outright declined it.. no application, no income statement...

Today I called CIBC to ask them a question and the guy asks me if I'd like to get a 15k line of credit.. pre approved so no credit cheque or income statement...

WHY!?
the only explanation i could come up with is that he is bending the truth to make a `sale`... and preapproval means nothing, they may still refuse my `application`..


any ideas? cibc and pcf are supposed to be the same bank.. one says no to my credit limit increase, while the other one offers me 15k!?
4 replies
Deal Addict
Aug 28, 2010
3521 posts
1223 upvotes
Halifax
d5486 wrote: cibc and pcf are supposed to be the same bank.. one says no to my credit limit increase, while the other one offers me 15k!?
They aren't the same bank. PCF may pay CIBC to handle their back end processing, but they are completely different banks.

PCF is a low cost bank and one of the main ways they do this is to not deviate from script. If the computer algorithm says you can get a credit limit increase, then you can get a credit limit increase. If it says no, then the answer is no. There is no appeal process or chance to reason with anyone. That would require hiring someone with the necessary skills to make the decisions and that costs money PCF doesn't want to pay.


CIBC is obviously completely different. Their computers likely use different algorithms and some of the human beings have the power to override what a computer says.
Deal Expert
User avatar
Aug 18, 2005
21223 posts
5939 upvotes
Burlington-Hamilton
PCF can be pretty strange with stuff like this. It used to be they would easily give a $10K credit line but were extremely stingy with overdraft.

Maybe now they are being stingy even with credit lines out of fear that people will default due to trying to use it to pay their variable mortgage when rates go up, or to finance their lives if they lost their job due to a poor economy.
- casual gastronomist -
Sr. Member
Nov 9, 2008
815 posts
464 upvotes
Ottawa
Jucius Maximus wrote: PCF can be pretty strange with stuff like this. It used to be they would easily give a $10K credit line but were extremely stingy with overdraft.

Maybe now they are being stingy even with credit lines out of fear that people will default due to trying to use it to pay their variable mortgage when rates go up, or to finance their lives if they lost their job due to a poor economy.

you're right.. funny statistics and cheap automated systems... they still make billions and lose a few customer here and there...
pff
Deal Addict
Dec 28, 2008
1382 posts
169 upvotes
Toronto
I've had clients who were declined for a loan/credit card, yet preapproved a month later.

A pre-approved PLC from CIBC means you just need to tell them you're employed and your information.
You don't need to do a credit check nor prove you're employed.
Sign the forms and then good to go.

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