There's an old saying "a bank won't lend you money if you really need it," and it's really almost completely true. Banks prefer to lend money or extend credit to people who already have lots of money, and carry
top credit cards. If you've got bread, no problem for you. But if you haven't, what do you do? Well, main idea is to look as if you're loaded, to appear as if you have it, and that's often almost as good as having it.Don't admit you're desperate, even if you are! Look like you couldn't care less whether they'll lend you money, like you haven't got a care in world. Dress really well, in your most impressive clothes, when you go to bank. Allow plenty of time, so you don't have to rush in at last minute, but can afford to saunter in, as if you're doing them a favor just considering borrowing money from their lousy institution. If it's a country bank, where you can be seen as approach bank, drive up and park, be sure to arrive in a good car, squeaky-clean and highly-polished, even if you have to borrow your Aunt Martha's Cadillac just for day.
Arrive primed with all information bank wants to know in order to approve a loan (lease or mortgage) for you. If you know that you've got some points in your history over last five years that will hurt your application (such as not long enough in your present job, not long enough in your present residence, inadequate salary, etc.) try to figure out how you can improve those areas before you go to see loan officer (to find out what questions may give you trouble, try and get a blank form ahead of time...even from another bank, if you don't want to let your bank know what you're considering).
If you've only been a few months on job, but your company small and closely-knit, see if you can get boss to agree to a little white lie, such as that you've been employed for two years. If you've only lived where you are now for a month, see if your mother's willing to have you list her address and telephone as address where you've been living for last three years.
If your salary's not high enough, but you get paid overtime quite regularly, see if your company bookkeeper will allow you to list your salary at what it averages out to, including overtime.
If you've got an unexplained break in your job history, where you were actually out of work, don't list it that way--say you were working for yourself running a small business from your home (give it an impressive-sounding name, and list your best friend's name, address and phone number if they want to check with your employer at that time).
In short, to get credit it isn't so important to have financial stability as it is to appear to have it. Follow this rule, and getting credit should be easy.
Here are a few tips that may be of great help to you, it they fit your situation.
*If you're getting a lease, normally only a landlord is involved, and most landlords who want to rent our their property will go along with you, even if your credit rating's not so hot, providing you look O.K., speak in a decent and reasonable manner with them, and have at least first month's rent and security deposit.
*If a bank won't give you a loan, don't despair! Their standards for credit are very fussy. But commercial finance companies aren't so particular. They charge more interest, but they may come through with loan.
*If finance company won't help you, there's always last resort, your friendly pawnbroker. He'll loan cash on watches, jewelry, furs, musical instruments, guns and everything else of value, Doesn't matter what your credit rating is!
*If you want a loan to start a new business, or increase capitalization of an existing one, and bank doesn't want to do it, try one of companies that offer to lend venture capital for just these purposes. You can get a good list of a large number of these companies in this book: Venture Capital, The Source-book of Small Business Financing, edited by Leroy W. Sinclair, published by Technimetrics, Inc., 919 Third Avenue, New York, NY 10022.
Mortages-the ins and outs
Let's say you've decided it's time you got more space for your family. You don't have a lot of cash saved up, and you don't know your way around housing market and complicated mortgage terms. What to do?
You're probably already friendly with a banker who knows you from your previous loans. Start with him. Ask him questions. Get his best guess about amount of money you would have to put down as a down payment on a conventional mortgage. If you can't meet that, you may be willing to put up with some red tape and get an FHA or VA mortgage if you qualify-lower down payments, lower closing costs (which have to be all cash, and can run over $1,000!), and a longer time to pay loan off (30 years, compared with 15 or 20, or sometimes 25 years, on a conventional mortgage). For more information on these Government-guaranteed mortgages, write to:
Further Reading
FHA Mortgages: Federal Housing Administration, Department of Housing and Urban Development, 451 7th Street S.W., Washington, D.C. 20410. VA Mortgages: Veterans Administration, Washington, D.C. 20420 (or your local VA Office).
