> General Discussions
The Money Lenders & Changers
Gina:
Samson,
Here's another option you might consider if it's available to you. Borrow from your 401K (if you have one) and pay off the creditors. You will still have to pay back the loan, but you will be paying yourself back with interest. That's what I did. I hate owing money. (Owe no man anything but love. Rom. 13:8)
As for myself, I will never buy another brand new car. That's truly where they get us. The minute a car is driven off the lot, it's already depreciated in value.
As an aside: Many BofA customers are moving over to my credit union (b/c BoA jacked up their fees!). For those who may not know, credit unions always have the best interest rates and few or no fees, but you have to belong to one. I could see about getting you in mine if you're interested.
All the best to you, Samson!
Samson:
--- Quote from: Gina on January 31, 2012, 08:49:28 AM ---Samson,
Here's another option you might consider if it's available to you. Borrow from your 401K (if you have one) and pay off the creditors. You will still have to pay back the loan, but you will be paying yourself back with interest. That's what I did. I hate owing money. (Owe no man anything but love. Rom. 13:8)
As for myself, I will never buy another brand new car. That's truly where they get us. The minute a car is driven off the lot, it's already depreciated in value.
As an aside: Many BofA customers are moving over to my credit union (b/c BoA jacked up their fees!). For those who may not know, credit unions always have the best interest rates and few or no fees, but you have to belong to one. I could see about getting you in mine if you're interested.
All the best to you, Samson!
Thanks Gina,
Unfortunately, I don't have a 401k Plan, used to have good State of NJ Pension Plan that I borrowed from regularly at a flat 4%, not the compounded crap. But, as I mentioned in the last part of My response to Dennis, the problem is solved, due to a financial surprise that God had already planned, of course, unknown to Me, only known by Him, it was quite a pleasant shock & surprise for both of Us. Thanks for your concern though, it's appreciated.
Kind Regards, Samson.
--- End quote ---
Foxx:
my best friend is 24 years old, no debt, paid off his school loans early. He has an account with WaMu and his parents have 4 other accounts, all in good standing. He is planning on proposing to his girlfriend this spring. He found a ring and wanted to apply for a credit card so he can make payments on it. They completely rejected him.
He pulled the mom card on them and she said that he has paid everything on time and their family has had accounts with them for 15 years. She told them if you can't even give a small line of credit to someone who has no debt or bad credit and paid off all his loans early no less, what motivation do we have to remain at this bank?
well they changed their tune and approved a credit card with $1000 on it. Not much considering the ring is 3500 but its a start.
the thing of it is banks consistently make claims that people don't have good enough credit or ENOUGH credit but how people, young ones like best friend, achieve good credit if his own bank that he has been with for years no less isn't willing to give something small. Especially when he has made good on all his other loans? What's sad is that this guy is an upstanding person, responsible, getting a degree in computer science, paid off everything he has owed, never missed payments on his phone or anything else. What hope is there for the young professionals of our country if the most upstanding guy I have ever known can't get approved for a dinky credit card at his own bank he has been with for years?
Why banks do credit score checks nowadays before approving you even for a checking account? What does a credit score have to do with my keeping money in their banking system? Don't they want my money? Anyway, they don't give people a chance, its a wonder banks are open at all considering they keep rejecting what seems like most of their business.
I remember a line from the movie "catch me if you can". Christopher Walkin was trying to secure a loan from Chase bank and they said sorry sir its too much of a risk, to which he replied "you're the largest bank in the world, what's the risk"
Dennis Vogel:
--- Quote ---Dennis,
Your points are Well Expressed, but the irony in all of this centers around the fact that I was approved by Brown Daub Chrysler with the Same Income that I presented in My application for refinancing with PNC Bank. Secondly, Brown Daub Chrysler doesn't expect Me to purchase a New Vehicle with them, I can Trade the Malibu, it's in excellent condition and still get a good used Car similar to the Malibu at a lower interest rate than PNC offered Me, they offered Me 8.49 %, remember, My Credit Score is above 800.
My main problem with this type of Business rationale primarily centers around the following: Why was My Income coupled with My good credit score good enough to originally purchase the Chevy Malibu in 2008, remember, that's MY INCOME only, not including My Wife's, but now with essentially the same Income, it isn't good enough for refinancing with the same Bank that originally gave Me the loan.
Another thing that is totally dishonest & greedy, whether it's "Legal" or not, centers around compounding interest on Loans, ie- placing almost all of the interest the first 1-3 years causing almost no principle to be paid on the loan, it may be "Legal," but it sure sounds like exploitation to Me.
Anyway, a far better alternative presented itself to Me, unexpected this was and centers around a particular help from a Family Member, unexpected because it wasn't solicited on My part, so I guess all of this doesn't really matter at this time. My Thanks goes to God.
Dennis, Now I realize that We didn't have to secure the Loan in the first place back 2008, but We did so in good faith with proper motive and much better income. We had no way of knowing that Our financial circumstances with drastically change. My wife makes only 50% of the total Net that She made prior to changing Jobs. Her former place of employment is officially closing down this June anyway. That's a State Government Job, State of NJ that is.
Anyway, I understand & accept your points Dennis and My problem isn't with the Car Dealer(Brown Daub), it's with PNC Bank, at least the Car Dealership was going to work with Me and valued my excellent credit.
Thanks, Samson.
P.S. I understand that the high Mileage of 93,000 was factor in not offering Me a better interest rate, but the Car in question(Malibu) is hardly getting driven anymore, hence lower insurance required. Prior to last June, the Car was being driven 50 miles daily to work, round trip, now it's only 15 miles round trip since June 2011 and I explained this to PNC and can prove it. So therefore, it won't accumulate much mileage anymore and hasn't for the last six months.
--- End quote ---
Back in 2008 banks were lending. Now they are afraid to lend money without substantial collateral, no matter what you credit rating.
They front-load the interest in case they need to foreclose.
I'm happy you found some help Samson.
Samson:
--- Quote from: John from Kentucky on January 31, 2012, 01:06:11 PM ---I have been a C.P.A. for over thirty years. I have seen just about all things of a financial nature.
The best advice comes from the scriptures where it says that the borrower is the servant (or slave) of the lender. If you want to be financially free, financially at peace, then never borrow money for any reason. Pay cash or go without.
Giving the above advice to any human is like telling people to not sin. ;D Waste of breath.
--- End quote ---
Actually John, it's great advice and one I usually follow to a T while Single. Once I get Married, even though in this case, the Woman in question is overall pretty good, My Love for Her softened my stiff neck financial rigidity in regards to the Malibu.
On a side note: My Grandfathers were both Accountants and My Dad majored in Accounting at Middlebury College of Vermont, but later switched to Geology, got involved with Standard Oil.
Your advice is the best, stay within your means and don't borrow Money, except as a last alternative or resort. I've been telling My Wife for almost 7 years, We have to live within Our means or INCOME Level, Lets see if She listens, maybe this time.
Thanks, Samson.
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