Sunday, March 8, 2009

Why we fired BoA

As many of you know we are in the process of purchasing our first home. During the process of securing a loan we talked to about five possible lenders. Keep in mind Jo and I have not had a credit card or any debt since 2005. The only thing we are going to borrow money for is this mortgage and we plan to pay it off very aggressively.

During this process we asked the bank I have used for twelve years about a loan. We had a large down payment and we were not trying to buy too much house. During our phone conversation the person on the other end was impressed with what we planned to do. However, when she ran our credit report she saw we had zero revolving credit accounts. We were then instructed that if we wanted the best rate we would need to open about three to four credit cards. It would also take them a week or so to "figure out" what kind of rate we could get since we had no open credit. Keep in mind our FICO score is still very high despite the lack of open credit.

How maddening is it that a bank that has taken SO much tax payer money to save it from bad loans would shy away from an obvious good loan unless we had three or four credit cards. What is their real motivation here?
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