Jump to content

Have YOU ever been denied?


Pete

Recommended Posts

Never once in my life have I ever been denied.. You?

 

Approximately 58 percent of millennials Opens a New Window. have been rejected for at least one financial product Opens a New Window. , a new survey has found.

The reason, according to the Bankrate.com Opens a New Window. report published Wednesday, is because of their credit score Opens a New Window. .

Meanwhile, the survey found that 53 percent of Generation X -- people aged between 39 and 54 -- and 27 percent of baby boomers -- aged between 55 and 73 -- have been denied a financial product.

“An unintended consequence of the CARD Act, which went into effect in 2010, is that it has become much harder for people in their early and mid-twenties to obtain credit,” Bankrate credit card industry analyst Ted Rossman said in the report.

 

https://www.foxbusiness.com/personal-finance/millennials-rejected-loans-credit-cards

Link to comment
Share on other sites

16 minutes ago, Cold War said:

My 21 yr old son just got a car loan, no problem.  I think it has a lot to do with them wanting you to have a job with the means to repay the loan.

people need to be taught how to build credit.  I am working with both my kids on doing that over the next few years so when they graduate college they are where they need to be.  

Link to comment
Share on other sites

37 minutes ago, Angry ginger said:

people need to be taught how to build credit.  I am working with both my kids on doing that over the next few years so when they graduate college they are where they need to be.  

Helped my 19 year old get a credit card. He won’t be buying any new cars for a few years. Any other ways to help build credit for them?

Link to comment
Share on other sites

  • Platinum Contributing Member

My son fresh out of college with a good job and zero college debt (just a small truck loan) couldn't get a Costco card.  Employment and residency length was too short.

I recall going thru some of the same issues unless was dealing with local banks who knew me.  

No credit history can be as bad as a poor one.

Edited by Highmark
  • Like 1
Link to comment
Share on other sites

I'm a little surprised and maybe not.

I have never been a big fan of borrowing.  I rarely go through the process.  I know the basic fundamentals of how they approve, but sometimes it doesn't make sense.  Here are a couple of scenarios.

Me:  I had essentially retired early with no visible income.  I was doing a project that needed quite a few materials.  I think I had $1,500.00 worth of junk at the checkout in one of those big box places.  They had a deal going for 25% discount on purchase if you applied for a card.  I figured it was worth the discount, so I did the application.  I only had one card and no debt for at least 10 years.  I didn't really expect them to give me a card.  They did, and it was for a lot more than it should have been IMO.

GF:  She never borrowed money.  Paid cash for her home and had a good paying job.  We had been telling her for years to get at least one credit card.  There are occasions that do not accept cash or debit.  Also, debit cards lack the protections.  She finally relented and filled out an application.  They notified her of the approval and a whopping $250.00 line of credit.😀  We still laugh about that approval.  It didn't make sense.  She obviously had plenty of money and income.  The credit limit was so low, that the card was worthless.  I'm guessing the small amount was simply based on her credit history of no borrowing or debt.

Link to comment
Share on other sites

Yup. The whole system is a joke. I own 2 homes, truck, car, sleds, ATVs, boat etc. Never had a credit card, because of no "revolving credit". Now I just dump my money in the bank. If I want something, I take out a secured loan, give them the money and when I pay it off, I get my money back. I think my current one is %1.87 interest ? It's pretty much free money, if you make the payments.

Link to comment
Share on other sites

Banks suck. The system is geared towards them making money. They want everything on monthly payments. I was always taught to build wealth and save as much cash as you can,in case of a emergency. The system now wants you to build credit? A few years ago I went to my bank to get a $10.000 line of credit on my house to make some improvements. My bank said they don’t like to to do those low loans and tried getting me to do a $30.000 line of credit. No fees and at 2% less?  I walked out. They kept calling wanting to do the 30k. I told them I wanted the same deal for borrowing the 10k. They declined and I used cash to make the improvements. Cash is king,I don’t care what the banks try to sell you. 

  • Like 2
Link to comment
Share on other sites

building credit isn't rocket science.  Pay your bills on time,  have a couple open accounts,  keep the balances well under limit and you can easily have a 750 FICO score.  Run up a bunch of debt to the max,  let your shit go to collection or fail to pay your credits going to be shit and people won;t lend to you.  Makes all the sense in the world. 

Of course banks want to make money but a smart person can take advantage.  I've paid for multiple vacations with points and i haven't paid $250 in interest in the entire time i have had credit cards.  

  • Thanks 2
Link to comment
Share on other sites

I started on my own.

Bought a boat.

My Dad, who worked at the bank, would not co-sign for me.

"No fucking way, figure it out yourself!".

I went to the manager. I had more than enough in savings to cover the loan.

Manager told my father, the loan manager at the time, "give him the money,  he's good".

 

Link to comment
Share on other sites

1 hour ago, Woodtick said:

Bought used sleds and ATVs ect with cash. Paid contractors with cash and saved big time. Cash discounts are much bigger than credit card points. 

I have a cash setup with my body shop in town here. He takes like 30% off. Nice when you have 2 teen drivers.

  • Thanks 1
Link to comment
Share on other sites

Just now, Edmo said:

I have a cash setup with my body shop in town here. He takes like 30% off. Nice when you have 2 teen drivers.

People don’t realize the up charge small businesses charge you for using a credit card. You are getting charged a extra 6% min for paying with a credit card. The cash discounts won’t work at big box stores,but most small businesses will give you at least 10% off for writing a check or using dead presidents. They hate paying credit card fees. I’m starting to see gas stations charge 10 cents less a gallon if you pay cash. Credit card companies make money on both sides of the transaction.   

Link to comment
Share on other sites

I've been denied twice that I can remember.  

#1. Applied for a Sears credit card in about 1985 because it got me an additional 10% off a washer dryer set I wanted to buy.  I had been out of college and employed for about 2 years.  Got denied.  I had just finished paying off my brand new 1984 Chevy Silverado that I financed for 12 months. I had over $10k in my checking account.  I was a bit surprised.  

#2.  December 2016. I had just retired.  I found a beautiful motorhome that I fell in love with.  Negotiated price was $220,000.  I had $80,000 cash to put down.  I had just received my severance check so my checking account balance was over $200k.  Got denied.  I'm like WTF.  My wife was so happy.   Two weeks later we found our Winnebago and I paid $59k cash for it.  Best thing that has happened to me since retiring.  

 

Link to comment
Share on other sites

4 hours ago, Angry ginger said:

people need to be taught how to build credit.  I am working with both my kids on doing that over the next few years so when they graduate college they are where they need to be.  

👍

we started both kids out at 17 with secured limited cards , and added them to our credit cards.  Which they never had access to.  We got them in the habit of paying bills using CC and paying them off at end of month.  They both have better credit than some of our friends in their 40’s .   

Nothing wrong with utilizing credit to buy and pay for things .  Just gotten a bad rap by irresponsible borrowers.  Had some friends recently buying their 17 yr old a new vehicle.  They were mad at bank and thought guy wasted their time by not giving their kid a loan in his name.  He has no job or income.  

 

 

Link to comment
Share on other sites

3 hours ago, Woodtick said:

Bought used sleds and ATVs ect with cash. Paid contractors with cash and saved big time. Cash discounts are much bigger than credit card points. 

those would be normal things your going to pay cash for.  The cost of the CC has been built into just about everything you buy and your not going to get a cash discount at the majority of places so might as well use the credit card and at least get part of that back.  

Link to comment
Share on other sites

20 minutes ago, Angry ginger said:

those would be normal things your going to pay cash for.  The cost of the CC has been built into just about everything you buy and your not going to get a cash discount at the majority of places so might as well use the credit card and at least get part of that back.  

Good point!

Link to comment
Share on other sites

  • Platinum Contributing Member
3 hours ago, Angry ginger said:

building credit isn't rocket science.  Pay your bills on time,  have a couple open accounts,  keep the balances well under limit and you can easily have a 750 FICO score.  Run up a bunch of debt to the max,  let your shit go to collection or fail to pay your credits going to be shit and people won;t lend to you.  Makes all the sense in the world. 

Of course banks want to make money but a smart person can take advantage.  I've paid for multiple vacations with points and i haven't paid $250 in interest in the entire time i have had credit cards.  

I buy toys for cash but always have CC cards. My credit score is over 820. 

Link to comment
Share on other sites

42 minutes ago, Angry ginger said:

those would be normal things your going to pay cash for.  The cost of the CC has been built into just about everything you buy and your not going to get a cash discount at the majority of places so might as well use the credit card and at least get part of that back.  

You would be surprised the people that swipe credit cards for large purchases for CC points. I have friends that are contractors and friends that own power sport dealerships. They love check writers. Some people are blinded by the cc points.

Link to comment
Share on other sites

4 hours ago, Woodtick said:

Banks suck. The system is geared towards them making money. They want everything on monthly payments. I was always taught to build wealth and save as much cash as you can,in case of a emergency. The system now wants you to build credit? A few years ago I went to my bank to get a $10.000 line of credit on my house to make some improvements. My bank said they don’t like to to do those low loans and tried getting me to do a $30.000 line of credit. No fees and at 2% less?  I walked out. They kept calling wanting to do the 30k. I told them I wanted the same deal for borrowing the 10k. They declined and I used cash to make the improvements. Cash is king,I don’t care what the banks try to sell you. 

Fuck banks and most other lending institutions........worst scum ever, I lost what little respect I had for them after the 2008 Mortgage Crisis.

  • Like 1
Link to comment
Share on other sites

18 minutes ago, snoughnut said:

Fuck banks and most other lending institutions........worst scum ever, I lost what little respect I had for them after the 2008 Mortgage Crisis.

Yup. They have turned into used car salesmen. Was refinancing my house several years ago. Going from a 20 year to a 15 year. I had a few tell me it was a mistake because my payment was going to go up.  They said I was going to get a much better rate because the rates had dropped,so why not lower my payment and stay with 20 years. They have become used car salesmen. I walked out of both of those offices. That would have cost me around 60k more doing it their way. 

Link to comment
Share on other sites

5 hours ago, Woodtick said:

Banks suck. The system is geared towards them making money. They want everything on monthly payments. I was always taught to build wealth and save as much cash as you can,in case of a emergency. The system now wants you to build credit? A few years ago I went to my bank to get a $10.000 line of credit on my house to make some improvements. My bank said they don’t like to to do those low loans and tried getting me to do a $30.000 line of credit. No fees and at 2% less?  I walked out. They kept calling wanting to do the 30k. I told them I wanted the same deal for borrowing the 10k. They declined and I used cash to make the improvements. Cash is king,I don’t care what the banks try to sell you. 

A banker is someone who will lend you an umbrella, then demand it back at the first sign of rain.

I was bad with credit, wife trained me out of that.

When my wife and I both became self employed in our business, we resigned our mortgage with an offer they made us at year four, scared self employment would scare them.

She made us debt free at year seven of home ownership. Not sure how she did that, except I was working seven days a week, 12 hrs a day, taking gambles on large projects... still it was at between five and seven percent interest. Paid 100k in interest on that 160k first house.

Interest rates are so low now, it entices people to borrow. That is problematic if rates go to where they traditionally should be.

Credit cards are the anomaly, there is no reason the interest should be so high, even with the default rates.

if all you have is a credit card for borrowing, tread wisely.

EU countries are offering 0% bonds, and even into the negatives.

That is not good. You are betting on the economy going for a shit.

Credit score is 880 now..don’t need their money but they keep offering it up.

Fuck them. 

 Cash is king. I will never sign a loan again

Edited by Voodoo
  • Like 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
  • Trying to pay the bills, lol



×
×
  • Create New...