Ravenous Wolf
04-03-2004, 11:31 AM
A few people I know have really taken it personally when a bank or a credit union has turned them down for a loan.
As for myself, I have been turned down for quite a few loans, especially in my quest to repair my credit.
However, since I have a degree in accounting and I have done the books for a few small businesses, I know that "business is business" and every business has to do what is in their best interest.
Is that greed?
Well, it depends on your philosophical view of the economy.
If you believe that the business world should be Santa Claus or that the government ought to be involved in every facet of every business decision, then it easy to be frustrated at such business decisions.
But banks or loans are just like consumers, they have to do what is in their best interest. Just as a consumer is picky, so is a bank.
Today, loan approval decisions are better than they have ever been. Of course there is room for improvement but I am much more confident of the system that is in place now than what was in my parents generation. In the past, a lot of subjective factors were taken into consideration, like race, age, gender, the zip code you lived in, etc. Today, most of those things are illegal and much of the criteria tries to be as objective as possible.
And from the denials that I recently got, I use those situations as learning experiences.
Like, when I got turned down by a loan, instead of being mad at the financial institution, I found out which factors hurt me the most and I am now attempting to improve those factors.
I am in a better financial situation today than I have ever in my life.
I am being approved and turned down for some of the best interest rates and terms that I ever dreamed that I even had a chance for.
In my past, I had the sub prime outfits offering me very small loans of 33 percent interest (for 36 months). Today, I am looking for the best possible terms and I only arrived at this position mostly because I learned from my past denials.
Knowledge is power and I gained a lot of knowledge from all those times that banks turned me down.
As for myself, I have been turned down for quite a few loans, especially in my quest to repair my credit.
However, since I have a degree in accounting and I have done the books for a few small businesses, I know that "business is business" and every business has to do what is in their best interest.
Is that greed?
Well, it depends on your philosophical view of the economy.
If you believe that the business world should be Santa Claus or that the government ought to be involved in every facet of every business decision, then it easy to be frustrated at such business decisions.
But banks or loans are just like consumers, they have to do what is in their best interest. Just as a consumer is picky, so is a bank.
Today, loan approval decisions are better than they have ever been. Of course there is room for improvement but I am much more confident of the system that is in place now than what was in my parents generation. In the past, a lot of subjective factors were taken into consideration, like race, age, gender, the zip code you lived in, etc. Today, most of those things are illegal and much of the criteria tries to be as objective as possible.
And from the denials that I recently got, I use those situations as learning experiences.
Like, when I got turned down by a loan, instead of being mad at the financial institution, I found out which factors hurt me the most and I am now attempting to improve those factors.
I am in a better financial situation today than I have ever in my life.
I am being approved and turned down for some of the best interest rates and terms that I ever dreamed that I even had a chance for.
In my past, I had the sub prime outfits offering me very small loans of 33 percent interest (for 36 months). Today, I am looking for the best possible terms and I only arrived at this position mostly because I learned from my past denials.
Knowledge is power and I gained a lot of knowledge from all those times that banks turned me down.