This is a followup to my post yesterday “How to Get an Unsecured Line of Credit in Canada?“

Currently I have 2 unsecured lines of credit in Canada. Both of them are for the same amount and each is from a different bank. I often get friends asking me: “How did you get those unsecured lines of credit?”

Well, the answer is simple, I just asked my bank for them! In fact, the first time I got an unsecured line of credit I asked my bank if I could have a loan, and they offered the unsecured line of credit (and I took it).

I had a chat lately with a senior staff member at one of the banks I bank in, and I asked him what are the criteria that they take into consideration to give someone a line of credit. Here’s what he told me:

• The client must have a history with the bank

  Unsecured lines of credit are only given to customers who have the bank as their main bank for at least a year, and who have an annual income of at least $50,000.

• The client must have an immaculate history with the bank

  The client must be in good standing with the bank. Meaning he never had a bounced check (on purpose) with the bank, he always paid his dues with the bank, and he never tried to take advantage of the bank in a malicious way.

• The client must know someone from within the bank

  Usually, unsecured lines of credit are not given over the phone by a stranger working at the bank. They are given by someone who knows you well at your branch. That’s why it’s always a good idea to have your own banker.

• The client must have a steady flow of income

  A steady flow of income is critical for the bank to give you an unsecured line of credit. This will assure the bank that one day, you will be able to fully settle your debt and that you’ll be able to meet the minimum monthly payments.

• The client must have a profession

  The client must be either an employee or self-employed. Unemployed clients are not eligible for an unsecured line of credit, even if they have a steady flow of income (that steady flow of income might be government help or wires from the client’s family overseas).

• The client must be of the right age

  There’s an announced age range that is eligible for the unsecured line of credit. A client below or above a certain age may not qualify for an unsecured line of credit.

The senior bank staff member I spoke too also stressed the point that the relationship with someone from within the bank is the most important factor as that person (the banker) might be flexible with some of the conditions in order to give the line of credit to the customer.

I hope that the post above will help someone here in Canada to find if s/he’s eligible for a line of credit, and remember, an unsecured line of credit is a privilege, and not a right, as the bank is mainly giving you money without any guarantee.

This article (as well as all other articles on this website) is an intellectual property and copyright of Fadi El-Eter and can only appear on fadi.el-eter.com.