Credit card balance

[bharat1236]

Hello guys,

I have a question regarding proof of funds. CIC website asks us to show credit card debt as well. I have well over the required amount in my bank account from past 6 months. But I also have credit card debt of around 10k USD which I want to pay over a year or so. My question is, If I declare those credit card balance, would it affect my application? do they subtract credit card debt from the actual amount to get the net worth? Please help me here.
Thanks for your help.

 

[sam3218]

Is it from the same bank? If not then you can leave it out. If from the same bank then you'll have to declare it.

http://askkubeir.com/proof-of-funds-canada-express-entry/

This article might help

 

[bharat1236]

Is it from the same bank? If not then you can leave it out. If from the same bank then you'll have to declare it.

http://askkubeir.com/proof-of-funds-canada-express-entry/

This article might help

Thanks for the reply. I have credit cards from multiple companies including my bank as well others are amex, discover etc. That article still doesn't clarify if I need to show all of my balance.However, it does say that they might subtract my credit card debt with my savings, thats scary.

 

[sam3218]

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

 

[kalebhushan]

I have a question on similar lines. Do we have to show that the we didnt have credit card debt from past 6 months or just at the moment of obtaining the letter?

 

[sam3218]

I have a question on similar lines. Do we have to show that the we didnt have credit card debt from past 6 months or just at the moment of obtaining the letter?

I have been fretting over this credit card issue for months. But to answer your question, you don't have to show that you don't have a credit card. It's not a crime to have a credit card. Just that you need to disclose your liabilities in that letter.

 

[kalebhushan]

I have been fretting over this credit card issue for months. But to answer your question, you don't have to show that you don't have a credit card. It's not a crime to have a credit card. Just that you need to disclose your liabilities in that letter.

I feel you, but my question is entirely different. Do i have to show a debt balance on CC from past 6 months or just the balance present at the time of obtaining a letter from CC company? In short, should my letter from Credit card company say "no balance present" or "Heres the balance from past 6 months"

 

[Gruff]

https://www.canadavisa.com/canada-immigration-discussion-board/threads/proof-of-funds-question.504642/

This post sums it up well regarding credit cards...

“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.”

 

[sam3218]

https://www.canadavisa.com/canada-immigration-discussion-board/threads/proof-of-funds-question.504642/

This post sums it up well regarding credit cards...

“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.”

That's an amazing post. Thanks. Do you think uploading credit card e statements will suffice for disclosure of liabilities?

 

[kalebhushan]

https://www.canadavisa.com/canada-immigration-discussion-board/threads/proof-of-funds-question.504642/

This post sums it up well regarding credit cards...

“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.”

This is so cool. Thanks a lot for sharing.

 

[ulka0410]

https://www.canadavisa.com/canada-immigration-discussion-board/threads/proof-of-funds-question.504642/

This post sums it up well regarding credit cards...

“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.”

I am facing a similar situation. Thanks so much for detailed response.

 

[earlybird2019]

I have many credit cards with no balance, do I still need to upload statements from all showing zero balance?

 

[navinball]

Just leave credit cards out, they have no way of knowing.

 

[earlybird2019]

Just leave credit cards out, they have no way of knowing.

Thanks, I was thinking about the same thing. Also, IMO an credit card statement with zero balance is neither declaration of debt nor demonstration of fund.

 

[Gruff]

Thanks, I was thinking about the same thing. Technically an credit card statement with zero balance is neither declaration of debt nor demonstration of fund.

As long as the balance had been zero for the 6 months POF I wouldn’t bother declaring it.

However if it had debt on it a in the last 6months that you have paid off I would still declare the credit card (provide six months of statements etc) especially if the payments show up on your transaction history for any accounts you are using as POF otherwise they may ask why you haven’t declared it (not because of any debt but to establish that you haven’t incurred debt to show POF in other accounts)