Readers Are Spellbound & Perplexed…
Dear GWBW — After five years at the same bank with good credit and relationships, they just turned me down for a personal loan! Or more accurately, they offered me one at a really high rate. Before I leave them, do I have any recourse? — Credit Where Due
Dear Credit Where Due,
Credit cupcake, before you dis your bank right back, just stop and realize that this is yet another one of those messy things we all have to deal with in our lives. I’m talking about: relationships. We all drag unresolved issues right into the next relationship, and the next… Granted you are a puny individual and your stud muffin bank is likely a faceless corporate Goliath, but relationships are relationships regardless of what they may look like on the surface. Get straight on what you bring to and how you behave in yours, and you can start to get a clearer picture of why the amazing banking guys/gals you’ve been so devoted to for the last five years don’t bring you flowers anymore, but an overpriced “Happy” Meal.
When asking for any loan, your credit scores (all three of them) will be examined, and interest points will be largely determined by them. Make sure your credit scores are in the range you imagine they should be. A part of your scores but not the whole picture, assuming the relationship with your bank you stated is with an actual personal banker and not just the tellers who can’t help you in credit’s regard, are what your banker is reviewing, but may or may not also give some sway to your character (which in this case includes your employment, your personal (versus just financial) histories with landlords and other creditors, and possibly collateral, if any). Credit cupcake, I cannot say this loudly enough while saying it with sincere empathy: take control of your destiny by responsibly and respectfully co-existing with your credit/money. Or else you will find unsatisfactory “credit due you” at the next “bank” and the next, and…
Understand your money, your self,
Dear Credit Where Due,
Well, we knew the economic crisis has tightened the purse strings on the banks. And, I understand your disappointment at seemingly being let down by a relationship you have nurtured for the last few years. However, do we ever have recourse when a friend says, “No”?
I cannot say whether late payments or outstanding balances on your credit report may have undermined you. My suggestion is to check your credit report, as there may be items listed on the report that are out of date or just incorrect. Be sure that what creditors are reading on your credit report is up to date and accurate.
Your recourse is that you have the power to give the bank your continued business or not. My suggestion would be to sit down with a representative of the bank and find out why your loan was denied and why the only product left available to you comes at such a high interest rate. Then decide whether to stay or go.
Talk to some other banks—once you’ve cleaned up your credit report as much as possible. Find out what other options you have. Perhaps a credit union will have better rates than a traditional bank. Investigate.
Just remember, in this very capitalistic society, the most effective recourse and vote is usually with your dollars. Give your business to businesses that support you.
Juicy Relationship Coaching for Leaders and Individuals.
Mondays money, work, purpose dilemmas. Thursdays family, relationships, love dramedy. Send your brewing questions on how to thrive—not just survive— modern life to: email@example.com.
© 2009-2017 ManifestGroup. All rights reserved.