Personal Finance

Chances of approval for SLOC TD

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  • Oct 20th, 2019 5:34 pm
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[OP]
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Oct 18, 2019
6 posts

Chances of approval for SLOC TD

Going into TD tomorrow for a SLOC, Im having one of my parents co-sign. They have decent credit and make over 100k, I need about 20k. My credit score is at 640 and I have a credit card with a 1000$ limit currently sitting at around 1300$ ( Wont let it get this high again and Ive been consistently making minimum payments and more, it hasnt gone into collections or anything so the account is in good standing) I have another mastercard with a 1500$ limit thats only at 267$... just want to know what chances of approval are and whether the associates discuss your credit scores with parents. They don’t know about my maxed out card and Id like to keep it that way til I repay it myself...

If anyone has experience with this let me know thank you!
16 replies
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Jul 1, 2007
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Your parents are fools for cosigning anything with you. Hopefully the banker properly explains to them that they are 100% responsible for your debt, not just in the event of default but even if the bank just decides they don't want to take a risk on you anymore. I've seen instances where a parent cosigned a loan with a child and the child applied for credit counselling (not quite bankruptcy) and the bank simply removed the child's name from the loan.
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Curious16 wrote: Going into TD tomorrow for a SLOC, Im having one of my parents co-sign. They have decent credit and make over 100k, I need about 20k. My credit score is at 640 and I have a credit card with a 1000$ limit currently sitting at around 1300$ ( Wont let it get this high again and Ive been consistently making minimum payments and more, it hasnt gone into collections or anything so the account is in good standing) I have another mastercard with a 1500$ limit thats only at 267$... just want to know what chances of approval are and whether the associates discuss your credit scores with parents. They don’t know about my maxed out card and Id like to keep it that way til I repay it myself...
What do you "need" $20K for so badly when you already can't pay off other cards that you have?

And getting parents to co-sign a loan for you without having the basic courtesy to inform them about all your other debts and payments, is incredibly disrespectful to them. You should tell them details about all your other credit cards/loans and all your income, then see if they still want to co-sign for you. Don't "trick" them into doing it, as it will just turn out worse down the road if something happens.
[OP]
Newbie
Oct 18, 2019
6 posts
I asked for the answer to a question not a lecture:) thanks
[OP]
Newbie
Oct 18, 2019
6 posts
Thalo wrote: Your parents are fools for cosigning anything with you. Hopefully the banker properly explains to them that they are 100% responsible for your debt, not just in the event of default but even if the bank just decides they don't want to take a risk on you anymore. I've seen instances where a parent cosigned a loan with a child and the child applied for credit counselling (not quite bankruptcy) and the bank simply removed the child's name from the loan.
My parents are well aware of what co signing a loan means... the credit card is only 300$ over limit lets simmer. I’ll use the line of credit to pay it off and stop using the card. I need the money to pay tuition and rent Im not taking 20k out for shits and giggles. Get off your high horse and lets not act like people dont make mistakes sometimes
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Apr 16, 2007
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Curious16 wrote: Going into TD tomorrow for a SLOC, Im having one of my parents co-sign. They have decent credit and make over 100k, I need about 20k. My credit score is at 640 and I have a credit card with a 1000$ limit currently sitting at around 1300$ ( Wont let it get this high again and Ive been consistently making minimum payments and more, it hasnt gone into collections or anything so the account is in good standing) I have another mastercard with a 1500$ limit thats only at 267$... just want to know what chances of approval are and whether the associates discuss your credit scores with parents. They don’t know about my maxed out card and Id like to keep it that way til I repay it myself...

If anyone has experience with this let me know thank you!
If you only have the two revolving credit products and one currently is overlimit you won't qualify for a LOC.
Moreover, considering you mentioned 'S' as in secured SLOC are you planning to finance a vehicle? If so just apply for an auto loan.
Curious16 wrote: My parents are well aware of what co signing a loan means... the credit card is only 300$ over limit lets simmer.
FYI, an overlimit card is an overlimit card. The amount is irrelevant.


None of this falls under the definitions of 'secured' Line of credit. Paying off tuition and rent does not qualify for this credit product.
Last edited by mikeymike1 on Oct 19th, 2019 5:52 pm, edited 2 times in total.
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[OP]
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Oct 18, 2019
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mikeymike1 wrote: If you only have the two revolving credit products and one currently is overlimit you won't qualify for a LOC.
Moreover, considering you mentioned 'S' as in secured SLOC are you planning to finance a vehicle? If so just apply for an auto loan.
Sorry I should have specified, I meant student line of credit, and Im having my dad cosign. He makes 150k yearly
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Curious16 wrote: Sorry I should have specified, I meant student line of credit, and Im having my dad cosign. He makes 150k yearly
Student lines of credit are for up and coming studies not for repaying aged student loans.
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[OP]
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Oct 18, 2019
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mikeymike1 wrote: Student lines of credit are for up and coming studies not for repaying aged student loans.
Im still a student in my 2nd year of undergrad I need the money to pay for my tuition and rent because with the new cuts doug ford made my OSAP isnt enough anymore
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Curious16 wrote: I asked for the answer to a question not a lecture:) thanks
Re: the over limit account “in good standing”
Although it may be in good standing as in no missed payments, it is not in good standing in respect of the cardholder agreement, which states that you may not exceed your credit limit.
Not sure how you were able to exceed it by 30%, and yet still claim it’s in “good status”.
Sounds like interest and over limit fees have been building up over a couple/few months, maybe longer.
Anyway, as already stated, that credit card being over it’s limit, especially by 30%, is going to cause you problems getting that LOC.
I suggest you borrow the money from your parents to pay off both your credit cards, let them report the new lower/zero balances to the credit bureaus, then and only then, go for the LOC, which you can then repay your parents what you borrowed.
Or is there a huge panic to get the funds tomorrow?
[OP]
Newbie
Oct 18, 2019
6 posts
coolintheshade wrote: Re: the over limit account “in good standing”
Although it may be in good standing as in no missed payments, it is not in good standing in respect of the cardholder agreement, which states that you may not exceed your credit limit.
Not sure how you were able to exceed it by 30%, and yet still claim it’s in “good status”.
Sounds like interest and over limit fees have been building up over a couple/few months, maybe longer.
Anyway, as already stated, that credit card being over it’s limit, especially by 30%, is going to cause you problems getting that LOC.
I suggest you borrow the money from your parents to pay off both your credit cards, let them report the new lower/zero balances to the credit bureaus, then and only then, go for the LOC, which you can then repay your parents what you borrowed.
Or is there a huge panic to get the funds tomorrow?
I’ve actually made payments in the past 2 days to bring it down to only 1250, however, it hasn’t been reported as of yet. I need the money in time to pay rent on Nov 1st, would it be possible to call the bank and inform them that the new balance is actually only 1250?
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Dec 12, 2009
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coolintheshade wrote: Anyway, as already stated, that credit card being over it’s limit, especially by 30%, is going to cause you problems getting that LOC.
I suggest you borrow the money from your parents to pay off both your credit cards, let them report the new lower/zero balances to the credit bureaus, then and only then, go for the LOC, which you can then repay your parents what you borrowed.
Or is there a huge panic to get the funds tomorrow?
I agree with @coolintheshade
I'd go to the bank of dear old mom and dad. Fess up that Doug's policy changes has put you between a rock and a hard place. Own up to you being over limit and that the student LOC may be denied because of it.

Making mistakes is part of growing up. Realizing the mistakes and coming up with a solution shows growth aka maturity.
Hopefully your dad has the cash flow to be able to front you the money so you can pay down the cards & your next months rent. Having a high income does not exclude him from being in a similar situation as you.

Once the payments show up on both statements & credit reports, go for the LOC.
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Apr 5, 2016
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As long as your dad's income is more than 50-60% of his liabilties (mortgage, loans, LOCs, etc), then the SLOC should be approved unless he shit the bed with his credit. I'm just surprised you couldn't apply for more student loans. Should be able to get at least $7k federal student loans.
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Aug 2, 2001
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Curious16 wrote: I asked for the answer to a question not a lecture:) thanks
It's from people assuming SLOC means "secured line of credit" instead of "student line of credit".

It's completely normal to have parents co-sign on student line of credit applications so don't sweat it. Everyone makes mistakes and you should talk to your parents about your debt and the plan to get out of it. At a minimum they should appreciate your honesty and desire to do better.
Deal Fanatic
Jan 21, 2014
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You have many siblings? Couldn't he just loan (or give) you the money to pay off the card's outstanding balance? it's just a small amount and let them charge you > 20%. He is willing to co-sign that means he is trusting you getting it under control.
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Jan 7, 2019
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Curious16 wrote: Going into TD tomorrow for a SLOC, Im having one of my parents co-sign. They have decent credit and make over 100k, I need about 20k. My credit score is at 640 and I have a credit card with a 1000$ limit currently sitting at around 1300$ ( Wont let it get this high again and Ive been consistently making minimum payments and more, it hasnt gone into collections or anything so the account is in good standing) I have another mastercard with a 1500$ limit thats only at 267$... just want to know what chances of approval are and whether the associates discuss your credit scores with parents. They don’t know about my maxed out card and Id like to keep it that way til I repay it myself...

If anyone has experience with this let me know thank you!
As it is now, your parents better be very strong w/r/t their credit history and current financial situation. If you're over limit on credit cards or any kind of revolving credit, it makes you a high risk client. Most likely the credit advisor will need to plea your case to the underwriters to have this deal approved, even with your parents on as co-signers.

I don't know if you know what your parents situation is like however if they make over $100k (combined/separate?) they might have a mortgage on their home which might over leverage them to the point that even with them as co-signers, you'll get a decline on your student line of credit.

You may need to take a year off school to work full time and get your credit history/tuition fee worked out.

Good luck!
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Jun 2, 2012
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Does your school have a deal with a local bank branch?

Many institutions direct their students to not just a specific bank but a specific branch. Check with your financial aid office. You may find more favorable terms, including an approval when you won’t get one from somewhere else.

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