I just got turned down for a secured loan!

limitdown · Oct 24, 2008

Quote from peilthetraveler:

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?
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at first I was going to ask if this was a joke...

but then I realized we are all going through this Bush II nightmare, all wide awake.....

so, what's down is up and what's up is down,

and the stock market doesn't even know which direction to go in anymore....

Bigpipn · Oct 25, 2008

Quote from watchdaride:

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 !!!!!
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You're not naive enough to think we live in a democracy, are you pal?

Read the bailout for yourself, it's public record. Prepare to be outraged. Get over it.

BuyYourFreedom · Oct 25, 2008

Quote from EMRGLOBAL:

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?
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Maybe he was using the loan for a non-essential purchase and did not want to deplete his emergency saving. Sounds responsible. Just a thought.

dinoman · Oct 25, 2008

Quote from lilduckling:

not true
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Yes it is true! I know 2 bank managers and they both told me they won't consider any loan for people with a fico less than 740.

Casey30 · Oct 25, 2008

Quote from watchdaride:

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 !!!!!
More...

Obama voted "Yea" for the bailout package too!!! Same for McCain. Your either voting for a turd sandwich or a giant douche. Have fun.

Casey30 · Oct 25, 2008

Quote from limitdown:

and the stock market doesn't even know which direction to go in anymore....
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Actually it does. You or I or anyone else just may not know which direction to take in it.

traderpro · Oct 25, 2008

Quote from peilthetraveler:

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?
More...

Check out prosper.com. Borrow up to 25,000. I am a lender on there and if what you posted is true i have no problem funding part of that loan. Score 700 DTI 0 and good income shouldn't be a problem.

peilthetraveler · Oct 25, 2008

Quote from traderpro:

Check out prosper.com. Borrow up to 25,000. I am a lender on there and if what you posted is true i have no problem funding part of that loan. Score 700 DTI 0 and good income shouldn't be a problem.
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Prosper doesnt loan anymore...they are in a quiet period, plus their interest rates a little high.

peilthetraveler · Oct 25, 2008

Quote from EMRGLOBAL:

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?
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Interest rates on secured loans are dirt cheap. About 3% over what the bank gives you. So if you put the money in a savings account at .5 you get a 3.5% interest rate on your loan. So lets say you put 100k in a saving account @ .5% interest and you get a loan for 100k at 3.5% interest for 5 years. Seems like you are losing money to the layman (THATS YOU!) But what I am really doing is keeping that loan for 2 years, then I throw that 100k(actually its 101k now with the interest i've accrued) into one of their CD's which pays 5%. Now i've already paid off 40k of the loan over 2 years so even though I will be paying 8% now for the next 3 years on the loan (unless they dont figure out what im doing and keep me at 3.5% which would be nice, but thats not what im trying for) Im getting 5% on the 100k and paying 8% on the 60k. If you do the math, you will see I actually make about 3500 dollars for getting this loan over the life of it. That means they basically paid ME $3500 to get a 0% interest loan.

Sorry you are not smart enough in the world of finance to see how money works. No big deal...anyone with an "average" IQ like you would've made the same mistake.

peilthetraveler · Oct 25, 2008

Quote from blackjack007:

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?
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My score is low because I was sued back in 2002 and got a judgement against me. I have no deliquencies. I also just bought a house in august. DTI is 20.85%