Why is it that I can't get a loan or line of credit for a measly $2 or $3 k when i have a mortgage, good credit, good income, paid off truck, car loan, etc. I had a charge off for a department store 6 yrs ago and is that really stopping me!? I want a privacy fence to keep my drunk neighbor from peeing in my yard! WTF is wrong with this world!?!?!?!?
Hey twil,
It sucks... and I am an 'evil' banker. The deal is, new 'consumer protection acts' have been enacted. Note, 'consumer protection acts' are *meant* to protect consumers; however, their cost of enforcement, and bottom-line revenue cuts due to this enforcement, has caused major shifts in the underwriting process.
Unless tight criteria is met - including a high credit score (in many cases over a 740 / 760), low debt-to-income ratio, longevity in career, and longevity in residence, one is not likely to be approved at any FDIC-insured institution. This means that we are all now reviewed under the same microscope to ensure no one is given 'unfavorable' advantage. Look at this way - let's say you and I are both starting the same type of business, but you have a better product than I, and our business and marketing plans show this. I have a credit score of 760, while you have a score of 720. Guess who's going to get the loan? The underwriting department looks at these scores and says 'hm, dawnhulio has a better track record than twil, and that's all that matters.' They no longer look at, say, the business plan and market research we both provided, showing that you have the better product (thus better return and less risk of the loan becoming insolvent). It's now considered 'unfair' to base the extension of loan funds off of 'projected' information. They are only looking at hard data that can be provided in case of a consumer complaint about 'unfair and deceptive acts and practices'. Seriously, it's called UDAP, and it can be looked up to one's content.
UDAP is something that is enforced under credit union regs too, but not to the extent it's being enforced under FDIC-governed institutions.
Thus, my sub-par product gets a chance... while your awesome product does not. Seem fair? I thought not. Thanks, consumer protection...
I have conversations like this several times a week. It sucks, and it's
not customer-centric.
So... first, a conversation with your pee-focused neighbor might not be out of line. It's funny a time or two, but after that... it calls for a good kick to the crotch.
Second, I'd recommend the same as others above, check out a credit union. Wish you the best.
