Bad Credit …Is It Really That Bad?

I was on the phone yesterday with a teacher from San Jose and she told me that Big Bank refused to work with her because she had bad credit, her score was too low (See “Brenda Borrower Gets Buffed by Big Bank“). When she told me her score was 599, I asked her what kind of plan Big Bank offered to help get her up to the minimum 620 (the minimum to qualify for the loan she wanted) and  improve her credit over time. Not only did they NOT give her a credit improvement plan, they wrote her off ALTOGETHER!

Here we have a teacher of 12 years, she had been through a divorce recently and so was adjusting to a new life. She has a steady paycheck that increases annually and a super stable job. Bottom line? She was in and out of Big Bank in 15 minutes, not because they’re service was so  quick and efficient, but because all they did before they even talked to her about her needs was say “Sit down, fill out this form, and lets look at your credit.” Credit was run,  they saw the score and told her there was nothing they could do for her “bad credit”.

Now, what happened to Big Bank of the past with the commercials of the big house, a white picket fence, and the golden retriever sitting on the porch? I can’t say that those days are gone, because they’re not.  They simply NEVER EXISTED. Big Bank looks out for Big Bank, always have and always will.

So now you must think “Wow, well if I can’t go to a local Big Bank Branch to get a loan then I probably can’t get one because they have the best resources and the most money.” Well my friends, they may have the most money (significantly more than me) but let’s remember that it’s blood money! Leeched from the wallets of John and Jenny Taxpayer. So yes, they may have more money but they lack what us smaller guys have…service and attention to the client. Bad credit is the least of their worries.

Well, Professor Homebuyer said she was throwing in the towel because there aren’t any other lenders that carry the teacher home loan she was looking for. I told her that if she was willing to give me a shot I’d look at her credit report and at the very least give her some suggestions to fix her credit. She sent me her credit report and within 15 minutes of looking it over I had to hang up with her. Why you ask? Was I not able to help her? Actually, all things considered she could pay off two small debts totaling $200 and she’d be able to spike her credit score within the next 3o days. She just had to clear up another factor that was a pending lawsuit (in her favor as I’m told) and she would be well above the 620 level! This was done in 15 MINUTES! 15!!! Professor Homebuyer ccould not believe it! When she asked why Big Bank didn’t look at the credit that’s all it took for me to get on my soapbox about how Big Bank wants to put up “Big Numbers”, and quite frankly they didn’t deserve her business.

I know that not every single person that walks in the door is going to be super qualified to buy a home. If they were then this job would be boring, there’d be no adventure to it. A mortgage banker should help people do just that, BANK. Professor Homebuyer set a date to meet at Santana Row for a cup of coffee at Starbucks to go over other specifics. The sad part is that these are all  typical stories with Big Bank, you can read about Amy’s story by clicking here, and you definitely don’t want to miss Ray Homebuyer’s run in with Big Bank. To read Ray’s story click here.

To conclude my post, don’t assume that because someone works at a Big Bank they have your best interests in mind. Actually, don’t assume that Big Bank always delivers on their promises, they don’t. When it comes to your credit, it is important to have someone who knows how to read it guide you in improving it. When Big Bank says “Sorry your score is too low.” remember that their standards of service are MUCH LOWER. If you want a second opinion, no sales pitch, give me a call on my cell phone and we can go through it together. There’s the right way to  do things and there’s the “Big Bank Business as Usual” way to do things.

If you have a story similar to Professor Homebuyer’s or would like some help reviewing your credit, write me or call me on my cell at (714) 244-7368 to tell me about it. The more stories we have the more awareness we can create.

Until next time, I wish you peace of mind, peace of body, and peace of spirit as you pursue your piece of the American Dream.

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• Brenda Borrower Gets Buffed By Big Bank (californiateachersandemployeeshomeloanprograms.com)
• Your Loan is Like a Cookie (bayarearealestatemarketupdate.com)
• Ray Homebuyer Changes His Name to Ray Homeowner (bayarearealestatemarketupdate.com)

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Tagged as: Chris Apodaca, Christopher Apodaca, credit repair, Credit Report, Federal Housing Administration, Loan, Real estate