Huge Credit Card Debt and its effect on POF Express Entry

[ustocanada49]

Hi,

I got an ITA for express entry recently and I didn’t knew it would move this fast. I bought a car just 3 weeks before getting ITA and borrowed about $12000 USD for the purchase from my Credit card company(I had a 0% APR offer). This money is deposited into my bank account and then I wrote a check to the dealership for $14000 USD a couple of days later.

Now, after a month, I do have ~12000 USD in my bank account (which is more than $16000 CAD, more than the minimum I need for POF for me and my wife) But I also have a credit card balance of ~$12000 USD. CIC is asking to mention all bank accounts and credit card debts in the POF letter. Now, is there a possibility of CIC rejecting my PR application because even though I do have required minimum amount in my bank account, I have equal amount of credit card debt as well?


My intention was to pay of this credit card debt in 1.5 years (since I am not being charged interest for all these days). Just to give an idea about my ability to pay off this debt, I make close to $75000 USD a year and I also have a letter from my employer about my salary too.

I appreciate your help in advance

 

[ustocanada49]

can someone reply to this please

 

[arrayofhope]

Hi,

I got an ITA for express entry recently and I didn’t knew it would move this fast. I bought a car just 3 weeks before getting ITA and borrowed about $12000 USD for the purchase from my Credit card company(I had a 0% APR offer). This money is deposited into my bank account and then I wrote a check to the dealership for $14000 USD a couple of days later.

Now, after a month, I do have ~12000 USD in my bank account (which is more than $16000 CAD, more than the minimum I need for POF for me and my wife) But I also have a credit card balance of ~$12000 USD. CIC is asking to mention all bank accounts and credit card debts in the POF letter. Now, is there a possibility of CIC rejecting my PR application because even though I do have required minimum amount in my bank account, I have equal amount of credit card debt as well?


My intention was to pay of this credit card debt in 1.5 years (since I am not being charged interest for all these days). Just to give an idea about my ability to pay off this debt, I make close to $75000 USD a year and I also have a letter from my employer about my salary too.

I appreciate your help in advance

You have nothing to worry about. Show them your credit card balance and your current Salary details along with your bank statement that has $12000. You can still sell your car and I assume get around 10K for it ( unless you bang it up real good ). Mention these details in a letter of explanation.

If I were you, I would pay as much as possible towards the credit card when you get your salary next. It doesn't look like you are in any hurry to move to Canada just yet(with a job that pays $75k, who would?). Since you have 90 days to submit your application, pay as much as you can towards the car.

Hope this helps.

 

[bestofluck]

Hi,

I got an ITA for express entry recently and I didn’t knew it would move this fast. I bought a car just 3 weeks before getting ITA and borrowed about $12000 USD for the purchase from my Credit card company(I had a 0% APR offer). This money is deposited into my bank account and then I wrote a check to the dealership for $14000 USD a couple of days later.

Now, after a month, I do have ~12000 USD in my bank account (which is more than $16000 CAD, more than the minimum I need for POF for me and my wife) But I also have a credit card balance of ~$12000 USD. CIC is asking to mention all bank accounts and credit card debts in the POF letter. Now, is there a possibility of CIC rejecting my PR application because even though I do have required minimum amount in my bank account, I have equal amount of credit card debt as well?


My intention was to pay of this credit card debt in 1.5 years (since I am not being charged interest for all these days). Just to give an idea about my ability to pay off this debt, I make close to $75000 USD a year and I also have a letter from my employer about my salary too.

I appreciate your help in advance

Credit card debt has nothing to do with your POF.

Just dont worry about anything because loans are to be paid from future earnings and not POF. Just subtract the current month outstanding from total POF.
No need to sell the car or do anything on loans.

 

[abderhamoumi]

Hi, the purpose of the POF is to show that the money is yours and you didn't borrowed it.What's the use to show that you have an amount of money in a bank account and to show from the other hand an outstanding balance of the same amount?

Unless you will bring your car with you to canada, sooner you need to sell it in my opinion do it now or bring it back to the dealer.

 

[ustocanada49]

Thanks very much bestofluck . I just did not want CIC to reject the application for such a silly reason. I hope they don't see it as a loan for immigration but rather as a loan for car purchase .

I could sell the car off but would have to face a loss of my $ 2-3k, which I do not want to :-[.

 

[arrayofhope]

Thanks very much bestofluck . I just did not want CIC to reject the application for such a silly reason. I hope they don't see it as a loan for immigration but rather as a loan for car purchase .

I could sell the car off but would have to face a loss of my $ 2-3k, which I do not want to :-[.

Hey,

I did not mean sell your car right away. I meant that your car would be generally viewed as an asset and can be sold if you need to pay off the loan you had taken. Like you said, you would lose some $$. But with your current employment situation, you have the ability to pay it off very soon if you so wish. Which is why I suggested you pay as much as you can towards the loan when you get your next few paychecks.

It looks like you are in no hurry to move to Canada just yet, so you have the luxury of taking the whole 90 days to submit your application, which means you have a period where you would get 3 - 6 paychecks and you could in effect cut down the loan in half.

This is just how I would generally go about paying my credit cards or loans even if I have 0% interest offers. But you would know best how to manage your money!

 

[javisam376]

Hi

I am in a similar situation, but with a twist. In Peru we have a bank acccount that works as an unemployment insurance, that is your employer has to deposit a month salary every year on that account however you cannot withdraw any money unless you become unemployed (either by being fired or quitting). I have about 14k cad in that account.

I also have an account with around 13k cad in cash (a regular savings account) and a credit card debt of about 12k cad.

I have been keeping the money in the regular savings account just in case I get an ITA because the other account doesn't have money that I can freely transfer or withdraw unless I become unemployed.

My question is, should I pay my credit car debt and show a credit card debt of 0 and show 14k cad in the account that I can only use when I become unemployed or should I show the 13k cad in the regular account + a credit card debt of about 13k cad + 14k cad in th account for unemployment?

Thanms for any input.

 

[chinnap]

Hi,

I got an ITA for express entry recently and I didn’t knew it would move this fast. I bought a car just 3 weeks before getting ITA and borrowed about $12000 USD for the purchase from my Credit card company(I had a 0% APR offer). This money is deposited into my bank account and then I wrote a check to the dealership for $14000 USD a couple of days later.

Now, after a month, I do have ~12000 USD in my bank account (which is more than $16000 CAD, more than the minimum I need for POF for me and my wife) But I also have a credit card balance of ~$12000 USD. CIC is asking to mention all bank accounts and credit card debts in the POF letter. Now, is there a possibility of CIC rejecting my PR application because even though I do have required minimum amount in my bank account, I have equal amount of credit card debt as well?


My intention was to pay of this credit card debt in 1.5 years (since I am not being charged interest for all these days). Just to give an idea about my ability to pay off this debt, I make close to $75000 USD a year and I also have a letter from my employer about my salary too.

I appreciate your help in advance

Hello, I am in similar situation and any suggestions on how you handled this situation would be great. Please post your experience.

 

[bharat1236]

They dont care about your credit card debts as long as those debt havnt been used for your POF. You POF should be out of your debts. Just mention in LOE how you are going to pay off your debts in future. No big deal. be honest, everyone has debts and most people pay it slowly in future.

 

[CMCB]

Hello, I am in similar situation and any suggestions on how you handled this situation would be great. Please post your experience.

Did u get PR with loan balance?I am nervous about my personal loan balance