Credit card balance

[navinball]

There was a fella who showed his credit card debt and his POF amount was promptly subtracted and his application denied. Only show credit card debt if your POF his higher than stipulated.

 

[Gruff]

There was a fella who showed his credit card debt and his POF amount was promptly subtracted and his application denied. Only show credit card debt if your POF his higher than stipulated.

This must have been because he had used part of that debt as his POF. There are other applicants with ongoing loans who have received PPR.

IIRC aren’t interested in your net worth so it’s possible to have credit card debt but the debt itself can’t be used to demonstrate you have funds in a different account (ie you can’t take a loan out to show you have the required settlement funds)

 

[earlybird2019]

There was a fella who showed his credit card debt and his POF amount was promptly subtracted and his application denied. Only show credit card debt if your POF his higher than stipulated.

Thanks brother, I have some credit cards, but I have no outstanding debt or anything.

 

[ROTORRES]

Does Employment Service Benefit can be considered as Liquid cash ? considering that this ESB are ready to be liquidated anytime you terminate your contract ?

 

[scot2canada]

This must have been because he had used part of that debt as his POF. There are other applicants with ongoing loans who have received PPR.

IIRC aren’t interested in your net worth so it’s possible to have credit card debt but the debt itself can’t be used to demonstrate you have funds in a different account (ie you can’t take a loan out to show you have the required settlement funds)

Hi there,

Many thanks for your posts here.

I'm not sure if I have this correctly. Say over a 6 month period, I start paying for everything (food, bills etc) on a credit card and run it up from 0 balance to 4k balance. Also during this period, I earn 2.5k a month and every month I put into my savings roughly 2k because I am paying for lots of things I normally would onto my credit card. At the end of the 6 month period I now have in my savings account enough to meet POF for 1 person, however a 4k CC balance. Would my POF be acceptable, even though I used my CC to pay for all my food, bills etc, therefore putting the vast majority of my income into my savings?

Cheers!

 

[Gruff]

Hi there,

Many thanks for your posts here.

I'm not sure if I have this correctly. Say over a 6 month period, I start paying for everything (food, bills etc) on a credit card and run it up from 0 balance to 4k balance. Also during this period, I earn 2.5k a month and every month I put into my savings roughly 2k because I am paying for lots of things I normally would onto my credit card. At the end of the 6 month period I now have in my savings account enough to meet POF for 1 person, however a 4k CC balance. Would my POF be acceptable, even though I used my CC to pay for all my food, bills etc, therefore putting the vast majority of my income into my savings?

Cheers!

No this would be flagged up. Any debt you declare on your application (and you should declare) will be deducted from your total funds to work out how much liquid money you have.

In your example, whatever saving you have, they would minus 4K CC debt off your savings when working out POF

 

[scot2canada]

No this would be flagged up. Any debt you declare on your application (and you should declare) will be deducted from your total funds to work out how much liquid money you have.

In your example, whatever saving you have, they would minus 4K CC debt off your savings when working out POF

Thanks for this.

I have some debt currently (4K) and I am considering getting a loan to cover this, and will be paid back over 2 years. At the same time, I would save just over 1k a month until I reach POF in my savings account, with no CC debt.

If I do this, will the loan I used to clear my debt affect my application? In other words, will my savings account balance be reduced by my outstanding loan amount at that time?

Thanks

 

[Gruff]

Thanks for this.

I have some debt currently (4K) and I am considering getting a loan to cover this, and will be paid back over 2 years. At the same time, I would save just over 1k a month until I reach POF in my savings account, with no CC debt.

If I do this, will the loan I used to clear my debt affect my application? In other words, will my savings account balance be reduced by my outstanding loan amount at that time?

Thanks

When you submit your application IIRC will look at your bank statements and do the following.

Total funds in all accounts - any debts/loans = how much you have to bring to Canada.

For example for an applicant of 1 person you need $12,669 minimum. If you had $15500 in your account and a $4000 loan they will work out $15500 - $4000 = $11500 so in this example you would not meet proof of funds requirement (you would need the full $16,669 to meet min funds and cover your loan)

Basically IIRC do not care if you plan to pay a loan off over time they will see it as; you have a loan you need the funds to cover the full amount now. You can submit an application with a loan as I did but it lead to massive delays in processing and ultimately I would have been rejected if I had not been able to provide them with proof of additional funds to cover my loan and meet the minimum funds

 

[scot2canada]

When you submit your application IIRC will look at your bank statements and do the following.

Total funds in all accounts - any debts/loans = how much you have to bring to Canada.

For example for an applicant of 1 person you need $12,669 minimum. If you had $15500 in your account and a $4000 loan they will work out $15500 - $4000 = $11500 so in this example you would not meet proof of funds requirement (you would need the full $16,669 to meet min funds and cover your loan)

Basically IIRC do not care if you plan to pay a loan off over time they will see it as; you have a loan you need the funds to cover the full amount now. You can submit an application with a loan as I did but it lead to massive delays in processing and ultimately I would have been rejected if I had not been able to provide them with proof of additional funds to cover my loan and meet the minimum funds

Thanks again for your reply.

I'm confused - I thought in the previous posts you were saying they are not interested in net worth?

Also, the post you quoted (apologies if I am being awkward, I understand I'm probably missing something obvious!):

“I've just spoken to IRCC on the phone as I've seen this question asked many times and there's never been a consistent and authoritative answer. The agent I spoke to said the following:

The funds that you show as proof of funds must themselves be debt free. That does not mean that you need to be debt free yourself, nor does it mean that you must show additional funds which could be used to clear your debt: it simply means that you cannot have borrowed funds in order to prove that you meet the required amount. You must be able to demonstrate where the funds came from: This may mean providing bank statements etc as an officer can do whatever enquiries and ask for whatever documents he wishes in order to establish where the funds came from. It will be down to you to then provide this proof.

The lady was very clear that you must disclose all of your debts, including loans, student loans, car loans and credit cards. This is so that IRCC can be sure that you did not borrow funds to show POF. They are, however, not interested in your net worth at all and only want to be sure that the funds in your account are liquid and can be withdrawn at any time.

To be completely clear and to illiustrate the point: it is the specific funds that are in your account which must beunencumbered by debt. For example: If you have $15312 in your savings account (enough for a family of two) and you have credit card debts of $5000, then you do meet the proof of funds requirement, so long as you did not borrow that money from any source. Those funds are not considered to be encumbered by debt. If, however, you have $15312 and you borrowed $5000 from your credit card or took a loan in order to meet the POF requirement, then those funds are encumbered by that debt and that would leave you with a net balance of only $10,312 leaving you $5000 short.”

 

[Gruff]

Thanks again for your reply.

I'm confused - I thought in the previous posts you were saying they are not interested in net worth?

Also, the post you quoted (apologies if I am being awkward, I understand I'm probably missing something obvious!):

“I've just spoken to IRCC on the phone as I've seen this question asked many times and there's never been a consistent and authoritative answer. The agent I spoke to said the following:

The funds that you show as proof of funds must themselves be debt free. That does not mean that you need to be debt free yourself, nor does it mean that you must show additional funds which could be used to clear your debt: it simply means that you cannot have borrowed funds in order to prove that you meet the required amount. You must be able to demonstrate where the funds came from: This may mean providing bank statements etc as an officer can do whatever enquiries and ask for whatever documents he wishes in order to establish where the funds came from. It will be down to you to then provide this proof.

The lady was very clear that you must disclose all of your debts, including loans, student loans, car loans and credit cards. This is so that IRCC can be sure that you did not borrow funds to show POF. They are, however, not interested in your net worth at all and only want to be sure that the funds in your account are liquid and can be withdrawn at any time.

To be completely clear and to illiustrate the point: it is the specific funds that are in your account which must beunencumbered by debt. For example: If you have $15312 in your savings account (enough for a family of two) and you have credit card debts of $5000, then you do meet the proof of funds requirement, so long as you did not borrow that money from any source. Those funds are not considered to be encumbered by debt. If, however, you have $15312 and you borrowed $5000 from your credit card or took a loan in order to meet the POF requirement, then those funds are encumbered by that debt and that would leave you with a net balance of only $10,312 leaving you $5000 short.”

Unfortunately it’s no longer true as I’ve discovered first hand! IIRC ARE interested in your net worth now, maybe the guy I quoted got lucky but the letter I got from IIRC detailed my net worth.

 

[Nixnic19]

I have the proof of funds from my main bank but i also have a credit card balance from other bank. Will this become a problem?

 

[Gruff]

I have the proof of funds from my main bank but i also have a credit card balance from other bank. Will this become a problem?

No provided the funds in your main bank are enough to meet the minimum funds requirement and cover the full amount of the credit card debt.

 

[Nixnic19]

No provided the funds in your main bank are enough to meet the minimum funds requirement and cover the full amount of the credit card debt.

So they would know if i have credit card from Bank B?

Main bank is A - with sufficient amount, nk credit card and no loans.

Pls advise. Thanks

 

[Gruff]

So they would know if i have credit card from Bank B?

Main bank is A - with sufficient amount, nk credit card and no loans.

Pls advise. Thanks

They will only know based on the documents you submit and it is advisable that you do tell them as IIRC are asking you to declare all bank accounts/credit cards/loans.

If you don’t declare bank B and IIRC find out you could see your application rejected and a 5 year ban for misrepresentation.

 

[Nixnic19]

I think you can safely ignore the debts from other banks and just submit POF for your main bank

How was your application? Did it work?