Personal Finance

CIBC Uloc as a new customer

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  • Apr 15th, 2021 12:06 pm
Newbie
Jul 20, 2020
12 posts
7 upvotes

CIBC Uloc as a new customer

I applied online for an unsecured line of credit with cibc, for “general use”. I don’t need it now, but it is a nice to have. I decided to call in for an update, and the agent said my online app isn’t showing yet but he can do one with me. However, he was very negative and suspicious - the only thing he knew is that I’m not yet a customer of cibc. He said that the bank will probably not give me one, and they like to know how a customer handles their banking first. So I asked isn’t it based on my credit history? I decided not to do an application with him, and now thinking of cancelling the online app. They haven’t pulled my credit yet.

Credit score is 780, and I have a mortgage. I have credit cards with low utilization and they are paid in full every month, and I have a 15 year credit history with nothing negative.

Was the agent right? It felt rude but was he right? I chose not to apply at my bank because I feel that banks give better rates to a new customer while trying to win more of your business.
21 replies
Member
May 29, 2019
315 posts
337 upvotes
My friend got a ULoC with them for his car, but had been a customer with them for 10+ years minimum, and so were his parents. He got like prime + 2-2.5% or something like that. We are the same age, similar credit history (nothing negative), making about the same but I was offered like prime + 8-9%. Couldn't believe it. They said to me that I have 1) good credit history 2) good ability to pay off the debt/make payments but that 3) I didn't have the relationship with them and that was the big draw back. Had I been with them for at least 5 years he said it would've brought 3-4 points off my rate. CIBC is all about relationships when it comes to that type of stuff. Unfortunately for me, TD (my bank since I was 7 years old) don't care at all about relationship and offered me crap. Went to a credit union instead.
Newbie
Jul 20, 2020
12 posts
7 upvotes
JamesW84831 wrote: My friend got a ULoC with them for his car, but had been a customer with them for 10+ years minimum, and so were his parents. He got like prime + 2-2.5% or something like that. We are the same age, similar credit history (nothing negative), making about the same but I was offered like prime + 8-9%. Couldn't believe it. They said to me that I have 1) good credit history 2) good ability to pay off the debt/make payments but that 3) I didn't have the relationship with them and that was the big draw back. Had I been with them for at least 5 years he said it would've brought 3-4 points off my rate. CIBC is all about relationships when it comes to that type of stuff. Unfortunately for me, TD (my bank since I was 7 years old) don't care at all about relationship and offered me crap. Went to a credit union instead.
Thanks this is very helpful. I might just go with a different option. These days I have low patience for businesses that don’t want my business. I’m now considering Scotiabank.
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Aug 24, 2016
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Win-ter-peg
JamesW84831 wrote: TD (my bank since I was 7 years old) don't care at all about relationship and offered me crap.
That’s not surprising to hear....
Newbie
Jul 20, 2020
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coolintheshade wrote: 28889F81-7140-4DCD-8D33-0EB02736CCB9.jpeg
LOL I’m already a Scotia customer, and I’ve been with them over 10 years. I’m open to suggestions and I’ll report back with my decision and the outcome. Mortgage is with Meridian, and I have VISA cards with Scotia (10K) and RBC(20K). Scotia offers limit increases once in a while, but not RBC.

Edit: those are limits. Both VISA cards are at $0. I use less than 10% of the Scotia card and pay it off each month.
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May 31, 2003
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I've definitely found in my experience with CIBC that they're a bit shy when you have no banking relationship with them for the PLOC. I've been with them for awhile now though and they're usually helpful with things I need.

We're also still in the middle of a pandemic, so when there's no history for them to review - a random request for a PLOC "just to have" is bound to raise some eyebrows.
"The crows seemed to be calling his name, thought Caw." - Jack Handey
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HeatWare
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Jul 20, 2020
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Chrispy wrote: I've definitely found in my experience with CIBC that they're a bit shy when you have no banking relationship with them for the PLOC. I've been with them for awhile now though and they're usually helpful with things I need.

We're also still in the middle of a pandemic, so when there's no history for them to review - a random request for a PLOC "just to have" is bound to raise some eyebrows.
I appreciate the feedback. Fair point re the pandemic, but this is where I think the agent should have probed first and passed judgement afterwards. I’m stable. I’ve been in the same job for 5 years, with raises and bonuses each year, and I rented the same condo for 4 years, then bought my own property last year. Again, I thought the whole point of one’s credit history is to give an idea of how a person handles credit.
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Jul 16, 2019
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Chrispy wrote: I've definitely found in my experience with CIBC that they're a bit shy when you have no banking relationship with them for the PLOC. I've been with them for awhile now though and they're usually helpful with things I need.

We're also still in the middle of a pandemic, so when there's no history for them to review - a random request for a PLOC "just to have" is bound to raise some eyebrows.
This makes me consider opening a crappy credit card with CIBC and putting a couple recurring bills on it. I'd like a ULOC from them, but I want them to offer me one so I don't have to go through the pain of the application process.
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Apr 5, 2016
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RKay754 wrote: I appreciate the feedback. Fair point re the pandemic, but this is where I think the agent should have probed first and passed judgement afterwards. I’m stable. I’ve been in the same job for 5 years, with raises and bonuses each year, and I rented the same condo for 4 years, then bought my own property last year. Again, I thought the whole point of one’s credit history is to give an idea of how a person handles credit.
Is your property financed? Time on residence is also a factor and may impact your rate as well.

Credit history is only part of the adjudication. There's so many things that are not reported on credit bureau.
Newbie
Jul 20, 2020
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someweirdo wrote: This makes me consider opening a crappy credit card with CIBC and putting a couple recurring bills on it. I'd like a ULOC from them, but I want them to offer me one so I don't have to go through the pain of the application process.
I agree, this is the way to go, for a patient person though. I guess the agent’s tone left me feeling under-valued as a prospective customer.
Newbie
Jul 20, 2020
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bomber17 wrote: Is your property financed? Time on residence is also a factor and may impact your rate as well.

Credit history is only part of the adjudication. There's so many things that are not reported on credit bureau.
I already mentioned that I have a mortgage with Meridian.

My only beef with the CIBC agent is that he didn’t ask me questions before deciding I wasn’t going to get approved. You have asked me more questions than he did. He only suspiciously asked why I was applying at CIBC and not my regular bank.
Newbie
Jul 20, 2020
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Thank you all for chiming in. I made my decision based on everything I’ve heard/read, plus the spreadsheet on this thread: https://forums.redflagdeals.com/list-creditors-lenders-pull-inquire-equifax-transunion-credit-card-application-info-update-1930587/
  1. I suspect I would have been approved by CIBC with a lower credit limit and a higher interest rate. Reason is that my credit history is long and spotless enough to get credit anywhere, but as a new customer they would not give me so much at the beginning.
  2. I chose to cancel the CIBC app. I have no patience if a company doesn’t want my money. They should be convincing me, not the other way around.
  3. I went with Scotia, and got approved in 30 minutes. The uloc is already set up and active on my online banking profile. Not the best rate though, I got prime + 3%
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Sep 14, 2012
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JamesW84831 wrote: Unfortunately for me, TD (my bank since I was 7 years old) don't care at all about relationship and offered me crap. Went to a credit union instead.
I've been with TD Canada Trust for over 30 years and they've solicited me for everything from TD Wealth advising, to TD credit cards, to TD overdraft protection, TD Direct Investing services, and a TD unsecured line of credit. I've also recently been solicited by them for private banking services. I generally have to tell them that I'm not interested in their credit card line or their overdraft protection or their private banking services on a somewhat regular basis every few visits that I have at the branch.

TD Canada Trust seems to have some sort of quota system in place for their employees. It used to be really bad when they used to have their automated systems call me for these offers and they wouldn't leave a message on my voice mail (only a few seconds blank message recorded) and luckily they eventually stopped doing this for me after I complained that I didn't want any of their telemarketing calls and if there was a product that I wanted which they offered, I would contact them and not the other way around.
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Sep 14, 2012
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someweirdo wrote: This makes me consider opening a crappy credit card with CIBC and putting a couple recurring bills on it. I'd like a ULOC from them, but I want them to offer me one so I don't have to go through the pain of the application process.
I've had a CIBC credit card for probably over 20 years (no bank accounts with them) and I have yet to receive any unsolicited (pre-approved) unsecured line of credits.
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Jul 16, 2019
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lmcjipo wrote: I've had a CIBC credit card for probably over 20 years (no bank accounts with them) and I have yet to receive any unsolicited (pre-approved) unsecured line of credits.
Damn. Do you think transferring investments over to Investor's Edge could convince CIBC to give me an LOC? Of course, I would only do this with long-term investments I'm not going to sell anytime soon, because I'm not going to pay $6.95/trade.
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Jul 20, 2020
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someweirdo wrote: Damn. Do you think transferring investments over to Investor's Edge could convince CIBC to give me an LOC? Of course, I would only do this with long-term investments I'm not going to sell anytime soon, because I'm not going to pay $6.95/trade.
Does it have to be a CIBC loc?
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Nov 14, 2003
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someweirdo wrote: Damn. Do you think transferring investments over to Investor's Edge could convince CIBC to give me an LOC? Of course, I would only do this with long-term investments I'm not going to sell anytime soon, because I'm not going to pay $6.95/trade.
If you move $100,000 to investors edge, you can have a no fee chequing account and a $140 rebate on a Visa card. With assets at the bank, they are more likely to give you a line of credit.

I don't think unsecured lines of credit are profitable because they carry the same risk as credit cards and make less money for the bank. They probably lose money on the lines of credit because many use they as chequing accounts.

If you have some dealings with the bank already, they probably would be more favourable to opening one for you.
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Jul 16, 2019
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RKay754 wrote: Does it have to be a CIBC loc?
I'm interested in CIBC because they're the only big bank with has a ULOC that can completely replace a chequing account. TD's ULOC comes close, but it doesn't provide free e-transfers.
batcave wrote: If you move $100,000 to investors edge, you can have a no fee chequing account and a $140 rebate on a Visa card. With assets at the bank, they are more likely to give you a line of credit.
I hope to do this in the future. But at the moment, I don't have over $100 000 in any single account type (TFSA, RRSP, or margin/cash). I only want to move a single account (preferably my TFSA) to Investor's Edge for the sake of simplicity and minimizing the likelihood I'll have to pay $6.95 for a trade that I can do for pennies or for free at Questrade.
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Dec 12, 2020
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@ someweirdo , CIBC gave me their Visa Dividend platinum card just after opening their smart chequing account and transferring my TFSA from Desjardin to a newly opened CIBC TFSA account , and the Rep actually told me that opening an investment or chequing account likely played a positive role in giving me that card because of the fact that I did not have a long credit history , my equifax score was 712 but also had 3 lates (more than 2 years old ) , I really wanted that card so I figured out that may be ,getting another CIBC financial product would probably play in my favor , and BINGO I was right !!
I kept the chequing account in hope of applying for a ULOC next year even if it`s not my main regular chequing account.
Last edited by semogi2001 on May 17th, 2021 7:57 pm, edited 2 times in total.

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