Member-only story
Banks Suck
Now more than ever
There once was a gentler time when your local bank was on the corner. You could walk to it, you knew the bank manager by name and the bank could not expand beyond the border of your state.
They had your checking account, savings, and something called a “Christmas Club” and they would lend you money for your car and your house.
Banking Today
I asked my bank for a home equity loan since I had some emergency repairs that cost $10,000.
My bank said, “No” since the appraisal on the house did not have enough value to collateralize the loan.
The did offer me a personal loan for the ten grand.
Hmmm…
The interest on the personal loan is 14%. The home equity is 8.5% AND is tax deductible.
Let me put my MBA to work here.
I get the difference in interest rates because there is a higher risk to the bank on unsecured loans.
The 14% deal is better for the bank, and I have the credit score to put the bank at ease. The home equity is better for me.
I would change banks but I think I’d get the same deal no matter which bank I went to.
Yep, banks suck.
