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Bad Credit and OSAP? Options
nokin
Posted: June 19, 2009 1:30:23 PM
Rank: Frosh
Groups: Member

Joined: 5/26/2009
Posts: 23
Alright, I have a question. My parents don't have the greatest credit, and I was wondering if this will be taken into account when they are looking over my OSAP application. I don't have any line of credit, so mine isn't tainted.

Even if my credit is fine, are they going to deny me OSAP because of my parent's not so great credit? I figured that they wouldn't, because I would be the one paying them back, but apparently it gets factored into the decision. worry
qwertqwert
Posted: June 19, 2009 1:40:26 PM

Rank: Student Body President
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Joined: 6/23/2008
Posts: 3,408
Location: Somewhere over the rainbow
You're parents credit doesn't matter.

Meatball Engineering '12
能ある鷹は爪を隠す
Kaylya
Posted: June 19, 2009 1:45:19 PM

Rank: Student Body President
Groups: Member

Joined: 3/4/2008
Posts: 2,575
Location: Ottawa
I'm pretty sure they only do credit checks on people applying as independents. (As in, people who have been out of school long enough that their parent's income doesn't get factored in). I don't think they will do a credit check for either you or your parents assuming you're the typical applying straight out of high school type student.

FAQ's:
1. Will I get in? See: electronicinfo.ca for Ontario schools. If you have a couple percent above the marks there and it's not looking at supplementary, the answer is almost certainly yes.
2. Anything else: Google it before asking.
Poppy
Posted: June 19, 2009 1:53:11 PM

Rank: Senior Student
Groups: Member

Joined: 6/10/2009
Posts: 262
Location: Ottawa
It will be factored in, but I think that in terms of having "not the greatest credit" they aren't actually that strict. Most of the people who are applying for OSAP are struggling financially in one way or the other - that's why it exists.

And just for clarification -- Do you have your own credit card? Because you mention not having a line of credit, but that's not really always the same thing. If you don't have a line of credit or a credit card, it's not that your credit is fine, it's that it doesn't exist. And just as a tip, that can really cause problems for you in the future - every student entering university should have a credit card (to be used extremely minimally and for which the balance is ALWAYS paid off in full every month.) Without a credit card or a line of credit, your credit is not fine, it's inexistent.

Edited because apparently I was wrong. I'm an independant anyway. smile The rest is true though.
qwertqwert
Posted: June 19, 2009 2:07:48 PM

Rank: Student Body President
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Joined: 6/23/2008
Posts: 3,408
Location: Somewhere over the rainbow
Parents credit is not factored in. There is no difference.

Meatball Engineering '12
能ある鷹は爪を隠す
karla
Posted: June 19, 2009 4:35:15 PM

Rank: Student Body President
Groups: Member

Joined: 6/5/2008
Posts: 6,357
Poppy wrote:
[And just for clarification -- Do you have your own credit card? Because you mention not having a line of credit, but that's not really always the same thing. If you don't have a line of credit or a credit card, it's not that your credit is fine, it's that it doesn't exist. And just as a tip, that can really cause problems for you in the future - every student entering university should have a credit card (to be used extremely minimally and for which the balance is ALWAYS paid off in full every month.) Without a credit card or a line of credit, your credit is not fine, it's inexistent.


+1. Get a credit card as soon as you can, because you'll find many things (such as buying a house) are impossible to do without credit (and good credit at that)
scarboro
Posted: June 19, 2009 4:57:54 PM

Rank: Student Body President
Groups: Member

Joined: 3/28/2008
Posts: 2,703
Location: Scarborough,Ontario
karla wrote:
Poppy wrote:
[And just for clarification -- Do you have your own credit card? Because you mention not having a line of credit, but that's not really always the same thing. If you don't have a line of credit or a credit card, it's not that your credit is fine, it's that it doesn't exist. And just as a tip, that can really cause problems for you in the future - every student entering university should have a credit card (to be used extremely minimally and for which the balance is ALWAYS paid off in full every month.) Without a credit card or a line of credit, your credit is not fine, it's inexistent.


+1. Get a credit card as soon as you can, because you'll find many things (such as buying a house) are impossible to do without credit (and good credit at that)

A major factor in getting a mortgage isn't if you've been charging and paying the few thousands of dollars a year on a credit card. It's your yearly income in a relatively secure job x a coefficient factor varying bank by bank. Last I heard from a realtor was a coefficient of 3.
So if you make 70,000$ a year, you can be approved for a mortgage of up to 210,000$.

It's not going to make any big difference if from 18-22 you charged and paid on time 20,000$ on a credit card.

UTSG Honours B.Sc. Specialist in Biology, Major in Ecology & Evolutionary Biology '12
mynameismattgotmlgo
Posted: June 19, 2009 5:05:42 PM
Rank: Student Body President
Groups: Member

Joined: 3/5/2008
Posts: 6,028
^ The max is more like 4-5X your yearly income, depending on the length of the mortgage term. If you want a 15-year term, then, yeah, it is going to be more like 3X is what you'll get approved for. A 30-year term + good credit and you'll probably get about 5X your yearly income, assuming you don't have a disproportionately expensive car or anything else like that.

I'm an independent applying for OSAP, and, as of yet, they haven't inquired about my credit history (to be honest, I don't think I even have one... I don't have and have never had a credit card and have never owned anything worth more than $1000).

BMSc Honours Specialization in Medical Science, Minor in Psychology UWO '09
Bachelor of Pharmacy University of Alberta '13
karla
Posted: June 19, 2009 7:22:13 PM

Rank: Student Body President
Groups: Member

Joined: 6/5/2008
Posts: 6,357
scarboro wrote:
karla wrote:
Poppy wrote:
[And just for clarification -- Do you have your own credit card? Because you mention not having a line of credit, but that's not really always the same thing. If you don't have a line of credit or a credit card, it's not that your credit is fine, it's that it doesn't exist. And just as a tip, that can really cause problems for you in the future - every student entering university should have a credit card (to be used extremely minimally and for which the balance is ALWAYS paid off in full every month.) Without a credit card or a line of credit, your credit is not fine, it's inexistent.


+1. Get a credit card as soon as you can, because you'll find many things (such as buying a house) are impossible to do without credit (and good credit at that)

A major factor in getting a mortgage isn't if you've been charging and paying the few thousands of dollars a year on a credit card. It's your yearly income in a relatively secure job x a coefficient factor varying bank by bank. Last I heard from a realtor was a coefficient of 3.
So if you make 70,000$ a year, you can be approved for a mortgage of up to 210,000$.

It's not going to make any big difference if from 18-22 you charged and paid on time 20,000$ on a credit card.


Right, but I think with good credit you're likely to get more.
Kaylya
Posted: June 20, 2009 8:54:33 AM

Rank: Student Body President
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Joined: 3/4/2008
Posts: 2,575
Location: Ottawa
mynameismattgotmlgo wrote:
^ The max is more like 4-5X your yearly income, depending on the length of the mortgage term. If you want a 15-year term, then, yeah, it is going to be more like 3X is what you'll get approved for. A 30-year term + good credit and you'll probably get about 5X your yearly income, assuming you don't have a disproportionately expensive car or anything else like that.

I'm an independent applying for OSAP, and, as of yet, they haven't inquired about my credit history (to be honest, I don't think I even have one... I don't have and have never had a credit card and have never owned anything worth more than $1000).


Have you had your name on a post-paid bill? (utilities, phone, internet, cell phone, etc)?

FAQ's:
1. Will I get in? See: electronicinfo.ca for Ontario schools. If you have a couple percent above the marks there and it's not looking at supplementary, the answer is almost certainly yes.
2. Anything else: Google it before asking.
Poppy
Posted: June 21, 2009 11:00:46 PM

Rank: Senior Student
Groups: Member

Joined: 6/10/2009
Posts: 262
Location: Ottawa
Good Credit is not important just for buying a home. Everyone expects that at some point they will want to invest in owning a home. Everyone doesn't expect one day to need an emergency loan. If you don't have good credit, you won't get it.
DontHate
Posted: July 3, 2009 6:46:58 PM
Rank: Senior Student
Groups: Member

Joined: 4/14/2009
Posts: 161
Location: Toronto
What about if you personally have Bad Credit im not an independent.... what to do then what to do?

QUEENS '13
karla
Posted: July 4, 2009 12:38:00 AM

Rank: Student Body President
Groups: Member

Joined: 6/5/2008
Posts: 6,357
DontHate wrote:
What about if you personally have Bad Credit im not an independent.... what to do then what to do?


What are you asking? That sentence is somewhat confusing
DontHate
Posted: July 4, 2009 1:43:04 AM
Rank: Senior Student
Groups: Member

Joined: 4/14/2009
Posts: 161
Location: Toronto
I applied for OSAP
I have bad credit
I am not an independent applying for OSAP i.e. I live with my parents etc
Is there an appeal process if I get denied?
Will I get denied?
things of that nature I am inquiring about

QUEENS '13
karla
Posted: July 4, 2009 2:47:55 AM

Rank: Student Body President
Groups: Member

Joined: 6/5/2008
Posts: 6,357
You will not get denied. I would not worry about it
DontHate
Posted: July 4, 2009 2:11:07 PM
Rank: Senior Student
Groups: Member

Joined: 4/14/2009
Posts: 161
Location: Toronto
Then why do they even do credit checks? kinda lame and a waste of time :S

QUEENS '13


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