I spoke to my banker at the credit union today. He mentioned how things are changing, they no longer add on to existing loans. Loans now are only granted with electronic items such as computers and TV's, furniture, hard items. (things banks can repossess)
My banker also mentioned that in the last year only 5 (yes FIVE) Visa credit cards have been issued, they are doing away with doing away with those. They still do cars but it is tougher than previously.
Also he stated a Bank of America employee told him that; Bank of America does not do auto loans in the office. The Bank of America now refers customers to BOA.com. He said the cost of paperwork and all those forms are the cause of the cutting back on loans. He said it is hard. He had a couple who both have high paying jobs call in to add on to loan to redo the yard and he had to say NO even with their perfect scores.
I think these changes reflect the trying to cut people back from living beyond their means. I live in Missouri and banks may differ from state to state.
Maybe rethink next time we have that hot little credit or debit card out. I try to use CASH for purchases and write what I spend my cash on. This has helped my budget.
By Annie from Hallsville, MO
