I just got turned down for a secured loan!

Discussion in 'Economics' started by peilthetraveler, Oct 24, 2008.

  1. Went to the bank yesterday to get a loan and just found out today it was denied. So...i have a 700 fico, no credit card debt , no car payment, house has 20% equity and to top it all off, I was securing the loan with an equal amount of cash in THEIR bank.

    So there was no risk to the bank and only profit to be made by them, but I was still turned down. This is how scared they are to make loans. They are hording their cash which I think is the reason the dollar is pounding all of the currencies. All that money is not in circulation, its being horded by the banks and I think that until that rate cut comes, the dollar is only going to pound those currencies more, and even then we dont know if they are going to start lending again.

    I'm starting to wonder now though, if is it indeed fear that is making them horde their cash, or are they trying to gain strength in the dollar, then use that strength to buy banks in other countries on the cheap?
  2. MGJ


    Perhaps you can find a way to express your opinions in the marketplace, by placing trades, taking risk, and (it is hoped) reaping rewards -- when the future unfolds in the way that you have bet. Good luck and happy trading!
  3. there was an economist on TV saying there was no writing in the bail out package that the banks need to use that money to lend to customers (main street ) . He said they are going to keep the cash to make there balance sheet look good so there stock will go up and make shareholders happy. They might even use the money to buy other smaller banks .

    Who could of thought they screw main street ? We get screwed again and thats what capitalism is all about. We need the govt to look out for the middle class or wall street will screw us again .

    Go Obama !!!!!
  4. 700 FICO isn't so hot these days. You need at least 750 to be considered a "Tier 1" borrower.
  5. you left out a very important number: dti ratio
    what is yours?

    with a fico of 700 you're below the median, and your score suggests a 90-day delinquency rate of 8%.

    btw what's the point of borrowing money that's secured by an equal amount of cash? did the loan specify that the cash would be used as a lien?
  6. Your borrowing the same amount that you have in "Cash" in the bank? Are you a fu#$ idiot?

    You are gona pay interest on a "Secured" loan?, You'r gona pay more money back for the amount of money that you have, in the bank.

    What logic is that, please explain it to me?
  7. not true
  8. Easy way to raise your credit score
  9. 377OHMS


    Hmm. Are you self-employed? They can get tough about that. Were you required to document income etc?

    I closed my home refi deal last night. I borrowed 665k on a 30-year fixed at 5.375% from my credit union. My credit rating was 785 (Experian). My loan to value was about 82%. Even though the refi requires PMI for a few years my payment dropped about $600.00 per month.

    The home is in S.Cal in an area that has dropped about 50% and about 20% of the homes are empty and going to auction. The credit union was pretty damned nervous about it but they finally coughed up the money.

    The messed up part is that the system is still way corrupt. The banks appraisor claimed my home appreciated 10% from its 2006 appraised value (wtf?). The appraisal was also totally bogus in that the closest comparitive property was 26 miles away and not even in the same valley as my home. Its like I'm in another real estate market and not the local market. So much for lending reform.

    You should try again with another institution as your numbers sound reasonable. You are the type of person they *need* right now, someone who pays his bills.

    good luck
  10. Neat post.
    #10     Oct 24, 2008