Personal Finance

Share your stories about trying to open a personal loan or ULOC with a bank you don't have a relationship with.

  • Last Updated:
  • Jun 25th, 2021 4:32 pm
[OP]
Sr. Member
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Mar 9, 2012
749 posts
338 upvotes

Share your stories about trying to open a personal loan or ULOC with a bank you don't have a relationship with.

I'd like to hear you guys on how it went getting a loan (personal loan unsecured credit line) as a first product from a bank you never dealt with? Share your stories.

My CIBC story: I'm having rough time opening an unsecured credit line. I have no previous credit dealing with them and this is the only reason I'm being given on the phone for the decline is: "Internal score with CIBC is too low". I am appealing their decision with a level 2 or whatever they call it. If it's still being decline, I'll go to their branch to give them one last chance to get some of my business.

EDIT: Approved for 5K. I will go to the branch to see if they can give me a higher limit when I open a bank account and a credit care account with them. I will update later.
Last edited by skunkyjosh on May 6th, 2021 12:08 pm, edited 2 times in total.
Current credit card set up:
CIBC Dividend Platinum Visa: 3% food, 3% gas, 2% transit, 2% restaurants, 2% recurring bills
Tangerine World MC: 2% drugstore, 2% home improvement, 2% hotel-motel
MBNA Amazon.ca Rewards MC: 2,5% on Amazon.ca purchases
31 replies
Member
Jan 24, 2013
313 posts
277 upvotes
Rainy River
With CIBC my first and only product initially was an Investor's Edge Account. Then CIBC offered me a ULOC- $15,000 about 9 months later of prime + 3%. I accepted the ULOC offer then later transferred the Edge Account to Scotia Itrade getting a big cash bonus in the process. Then years later when Smart Plus came along first transferred investments back to CIBC Investor's Edge picked up another $400 in an Edge promo for that. Waited for a Smart Plus promotion to come along (another 6 or 8 months after) got another $300 for opening Smart Plus.

I think with all my ULOC's I had some type of product with the bank. Just about all of them it was me accepting an offer for a ULOC rather than me pursuing the ULOC. I should close some of them I really only like TD's (lowest rate I have prime +2%), CIBC's and Simplii's, the others I should close out.
Newbie
Mar 5, 2017
88 posts
17 upvotes
I am looking to apply ULOC with CIBC too but hesitant only because I am not sure if they will approve me since I don't have any products with them.
Deal Addict
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Jan 16, 2007
1531 posts
1766 upvotes
I'm in the process of switching my mortgage to Simplii away from RBC, so thought I'd try for a ULOC as well since that would get me out of RBC completely but alas - the system decided that no, no ULOC for me. Mortgage was approved fine though. Not exactly no relationship but a minimal one over all.

I'll probably try to grab one from Scotiabank since I'm planning on getting the Ultimate chequing package to get my Amex Gold AF covered, and some iTRADE trades covered.
🏦 Banking: Motive Financial (1.25%, No fees), Alterna Bank (0.9%, No fees)
📈 Investing: Scotia iTRADE (XGRO, No fees)
💳 Spending: MBNA Rewards World Elite (5.5pts dine/utilities, 1.1pts rest), Brim Mastercard (1%, forex)
Deal Addict
Oct 27, 2012
2518 posts
4103 upvotes
Toronto
Even though I opened an account with CIBC in 1999, there was a period for a few years where I had absolutely nothing with them, no CC or account when I was living abroad and declared non-residency.

When I came back I went to a CIBC branch for their $300 Chequing promo. At that meeting I casually asked about a LOC as I had also happened to be applying with TD for a LOC (which I also had a account and CC with at the time). It did go into underwriting and I had to give them paystubs, some bank statements showing net worth, my employment offer and letter, but I had a response a few days later that I was approved at Prime +1 (due to my profession) and a crazy high limit. Meanwhile TD offered me something like Prime plus 9%, a 10K limit (a fraction of what CIBC offered), on condition I close off two credit cards too. I went with CIBC and closed my TD accounts and only left a CC there for churning.
Deal Addict
Oct 27, 2012
2518 posts
4103 upvotes
Toronto
Oh actually, another one from my war chest:

Also had an account with Scotia in the late 90s, but closed it when they started charging fees when I turned 18. A few years later I went back to law school and was looking for a professional line of credit (didn't need it but why not?) TD said I needed a guarantor to get one from them. My school had a designated contact at Scotiabank. Spoke with them, no guarantor needed and they approved me for 120K at Prime plus 0.5% (TD was Prime plus 1%). RBC would only do 80K and Prime plus 1% at the time.
[OP]
Sr. Member
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Mar 9, 2012
749 posts
338 upvotes
YEGDealSeeker wrote: I am looking to apply ULOC with CIBC too but hesitant only because I am not sure if they will approve me since I don't have any products with them.
I will let you know how it goes. I'm still waiting to hear back from the underwriter. I might call to find out if they have a decision tomorrow.
Current credit card set up:
CIBC Dividend Platinum Visa: 3% food, 3% gas, 2% transit, 2% restaurants, 2% recurring bills
Tangerine World MC: 2% drugstore, 2% home improvement, 2% hotel-motel
MBNA Amazon.ca Rewards MC: 2,5% on Amazon.ca purchases
[OP]
Sr. Member
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Mar 9, 2012
749 posts
338 upvotes
User455957 wrote: Is this how you pick up Chick's?
Added to ignore list.
Cheers
Current credit card set up:
CIBC Dividend Platinum Visa: 3% food, 3% gas, 2% transit, 2% restaurants, 2% recurring bills
Tangerine World MC: 2% drugstore, 2% home improvement, 2% hotel-motel
MBNA Amazon.ca Rewards MC: 2,5% on Amazon.ca purchases
Newbie
Mar 5, 2017
88 posts
17 upvotes
skunkyjosh wrote: I will let you know how it goes. I'm still waiting to hear back from the underwriter. I might call to find out if they have a decision tomorrow.
Did you find out if you got approved or not?
[OP]
Sr. Member
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Mar 9, 2012
749 posts
338 upvotes
I'm approved for 5K at the moment, which is a joke of course hehe. It's their minimum. I have a branch appointment scheduled for June 10th. Let see if something pop up on their computer screen when I open the bank account and apply for the credit card too. I hope they won't hit my credit bureau again.
Current credit card set up:
CIBC Dividend Platinum Visa: 3% food, 3% gas, 2% transit, 2% restaurants, 2% recurring bills
Tangerine World MC: 2% drugstore, 2% home improvement, 2% hotel-motel
MBNA Amazon.ca Rewards MC: 2,5% on Amazon.ca purchases
Deal Addict
User avatar
Jul 16, 2019
1385 posts
1651 upvotes
skunkyjosh wrote: I'm approved for 5K at the moment, which is a joke of course hehe.
It's not a joke if you use it as a free chequing account. That's the best perk of CIBC ULOCs.
[OP]
Sr. Member
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Mar 9, 2012
749 posts
338 upvotes
someweirdo wrote: It's not a joke if you use it as a free chequing account. That's the best perk of CIBC ULOCs.
I meant that the limit they are offering me is a joke compared to my income when I look at all the five Cs in credit adjudication.
Of course I want the product because it's the best ULOC that exists!

Image

Character: is great. No bankruptcy, stability in employment: over 15 years in the same field.
Collateral: is good, I have a house with more than 60% equity available on it. No derog or previous bankruptcy with a score over 800.
Capacity: my debt ratio is low and usage% vs revolving credit is low as well.
Capital: is alright, I have some savings if something was to happen to my current work situation.
Condition: I don't have any debt beside my mortgage. Nothing needs to be closed down.
Current credit card set up:
CIBC Dividend Platinum Visa: 3% food, 3% gas, 2% transit, 2% restaurants, 2% recurring bills
Tangerine World MC: 2% drugstore, 2% home improvement, 2% hotel-motel
MBNA Amazon.ca Rewards MC: 2,5% on Amazon.ca purchases
Sr. Member
Nov 22, 2012
649 posts
731 upvotes
NS
joshnet wrote: I'm in the process of switching my mortgage to Simplii away from RBC, so thought I'd try for a ULOC as well since that would get me out of RBC completely but alas - the system decided that no, no ULOC for me. Mortgage was approved fine though. Not exactly no relationship but a minimal one over all.

I'll probably try to grab one from Scotiabank since I'm planning on getting the Ultimate chequing package to get my Amex Gold AF covered, and some iTRADE trades covered.
Simplii appears quite reserved in their ULOC underwriting. My ULOC application was also declined when I opened a chequing account. Since they do a hard credit check when opening a chequing account, I applied for overdraft protection and an ULOC at the same time even though I didn't need them. They gave me 1900 for an overdraft limit by no ULOC.
Deal Expert
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Jan 27, 2004
46698 posts
9797 upvotes
T.O. Lotto Captain
skunkyjosh wrote: I meant that the limit they are offering me is a joke compared to my income when I look at all the five Cs in credit adjudication.
Of course I want the product because it's the best ULOC that exists!

Image

Character: is great. No bankruptcy, stability in employment: over 15 years in the same field.
Collateral: is good, I have a house with more than 60% equity available on it. No derog or previous bankruptcy with a score over 800.
Capacity: my debt ratio is low and usage% vs revolving credit is low as well.
Capital: is alright, I have some savings if something was to happen to my current work situation.
Condition: I don't have any debt beside my mortgage. Nothing needs to be closed down.
Collateral only applies if you are pledging it for the purpose of the loan. So unless youre applying for a secured LOC, then collateral part of 5 C would be NO.
Deal Fanatic
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Nov 13, 2010
7193 posts
1447 upvotes
Scarborough
Recently opened a simplii chequing account, and applied for uloc too.....waiting for decision.
[OP]
Sr. Member
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Mar 9, 2012
749 posts
338 upvotes
UrbanPoet wrote: Collateral only applies if you are pledging it for the purpose of the loan. So unless youre applying for a secured LOC, then collateral part of 5 C would be NO.
You mean not applicable. :)
Current credit card set up:
CIBC Dividend Platinum Visa: 3% food, 3% gas, 2% transit, 2% restaurants, 2% recurring bills
Tangerine World MC: 2% drugstore, 2% home improvement, 2% hotel-motel
MBNA Amazon.ca Rewards MC: 2,5% on Amazon.ca purchases
Penalty Box
User avatar
Dec 16, 2015
2805 posts
2481 upvotes
Toronto
BMO sent me a letter that im already preapproved for $50k ulcoc and its guaranteed i just need to accept it by a certain date with no credit check lol. TD is also preapproving.
To the moon
Deal Fanatic
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Nov 13, 2010
7193 posts
1447 upvotes
Scarborough
Received the simplii debit in the mail.....got a call about the uloc but missed it....they left message to call back on the general number....
For the chequing I did not ask for overdraft though..but they wanted ID for chequing too...despite giving sin number in application
[OP]
Sr. Member
User avatar
Mar 9, 2012
749 posts
338 upvotes
I went to the bank and opened the bank account and applied for the credit card and the ULOC. I'm waiting for the decision from CIBC because of my credit alert or my high TDS or both... My high TDS is due to a delayed real estate transaction, mortgage still showing up and RSP loan which will be paid with a part of the mortgage transaction still showing up as well. I will update when I have the decision. Also, I spoke to the CIBC rep and they are aware of people using ULOC like a chequing account, she said there's no issues with that kind of use as far as she knows.
Current credit card set up:
CIBC Dividend Platinum Visa: 3% food, 3% gas, 2% transit, 2% restaurants, 2% recurring bills
Tangerine World MC: 2% drugstore, 2% home improvement, 2% hotel-motel
MBNA Amazon.ca Rewards MC: 2,5% on Amazon.ca purchases

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