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View Full Version : Banking rules !!!!



Clarence Martin
06-22-2014, 9:31 PM
DOES THIS MAKE ANY SENSE???

If a Bank says they need a Co- Applicant because they think the person applying for the loan does not have enough of a credit history, ( even though they recently had a Mortgage paid off from that Bank ), but if the Co -Applicant dies afterwards and the Bank says that it don't matter, Then why would they require one to begin with ? :confused:

Dick Latshaw
06-22-2014, 10:16 PM
The bank always knows best. Or as we say down here in Florida: Las reglas son las reglas.:)

Dan Hintz
06-23-2014, 6:16 AM
There is still the estate of the deceased... for a while, at least.

Phil Thien
06-23-2014, 9:28 AM
I imagine a loan with a co-signer is more valuable (for packaging/resale) than a loan without. So the bank is going to try to get all the things that increase the value of the loan in the event that they want to sell it off (which, from my experience at least, seems fairly common).

But once a loan is sold-off, the bank no longer cares how old the co-signer is, that is the next guy's problem.

Brian Tymchak
06-23-2014, 12:06 PM
DOES THIS MAKE ANY SENSE??? :confused:

Sure it does. It's all about risk. If the loan was paid down to a level where the risk of the applicant is no longer an issue, or the credit worthiness of the applicant has increased enough, then the bank might decide to forego the need for a co-applicant. Same concept as having to pay PMI for mortgages with down payments under a certain % of the loan.

FYI - paying off a mortgage doesn't necessarily make the applicant a good credit risk. All the other things about current job situation, assets, overall debt, debt history, etc come into play. And right now, banks are still pretty stringent about their lending standards (or so I've heard on the news).

Brian Elfert
06-23-2014, 2:03 PM
A lot of very worthy borrowers have low credit scores because they haven't taken out loans in the past. Your credit score is mostly a snapshot of how well you have done at paying off past and current loans combined with how much of your available credit you are using at any one time. If someone had a mortgage in the past they should have a credit history that raises their credit score if the loan was paid on time. Many people have a personal philosophy of paying off everything with cash and they may not even have a credit card. They won't have any credit history and that hurts them when they do want to take out a loan. They have lots of assets, but banks don't want them as a client due to not using credit previously.

I use credit cards to pay for almost everything, but I don't pay interest. I don't pay any attention to what the interest rate is because I pay the balance in full every month. I probably run more than $15,000 a year through credit cards. Most credit cards you can even set up automatic payment of the balance in full every month in case you forget to pay. Using credit cards this way should help boost one's credit score.

Dan Hintz
06-23-2014, 4:03 PM
Many people have a personal philosophy of paying off everything with cash and they may not even have a credit card. They won't have any credit history and that hurts them when they do want to take out a loan. They have lots of assets, but banks don't want them as a client due to not using credit previously.

I watched a news show (20/20, 60 minutes, et. al.) a few years back on credit, and they did a few minutes on celebrities. Evidently they have some of the worst scores for the exact reason you mention. It's irrelevant that they make millions... they often simply have no real credit score to speak of because they tend to pay "cash" for purchases large and small.

Mike Lassiter
06-23-2014, 6:19 PM
My Aunt (who is 94) was "trading cars" in 1990. She has no credit, pays with cash, doesn't borrow. House paid for 50 years ago, car and everything paid for when purchased. She told me when she was at the dealer they told her they couldn't sell her the 1990 Dodge Dynasty she was looking to get because she didn't have and credit. She said she just laughed at the guy and told him she didn't NEED any credit, she intended on paying cash for it. I'm sure they haven't saw many like her.

She took me in when I was 4 and was driving a 1958 Ford Galaxy 500 then. She drove it until 1971 when she traded it in on a 1972 Dodge Dart which she kept until 1990. She traded it in on the 1990 Dodge Dynasty which she kept until 2009 I think. It started giving her "trouble" and couldn't get parts hardly anymore for it. She was afraid it would leave her stranded somewhere. The Dart had 62,000 miles on it when she traded it off. She perked up when she told me about it. She said they gave her $2500 trade on it. She said she didn't give but $3500 for it new and drove it almost 18 years. She lives next door to the church she goes too, and drives to the hospital daily to Gray Lady volunteer. This month she was honored for her 42 years of volunteer service and 52,000 hours she has worked as a Gray Lady volunteer.

She is the oldest of 7 kids and all grew up during the depression. I would dare guess she is a millionaire. She worked at South Central Bell for 45 years before retiring. Has not wanted much other than just a black & white tv WITH A DIAL ( took her forever to learn to use the remote on the new one she had to buy when the 25" B&W finally died after 40+ years. No microwave, basic everything and happy.

bryle martin
09-01-2014, 1:36 AM
Despite of the fact that bills are totally rising, people need personal loans to deal with unexpected expenses. Yearly, numerous people elect to take a loan from a 401K, an earlier withdrawal from their 401(k) account, which they have to repay. Unfortunately, a growing share of these loans isn’t paid back, as the number of 401(k) loan defaults has risen in recent years.