# How do you get a first bank loan? **URL:** \ **Category:** Factual Questions\ **Created:** [June 7, 2007, 8:57pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179 "2007-06-07T20:57:09Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Bosda\_Di\_Chi\_of\_Tricor](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bosda_di_chi_of_tricor/32/16845_2.png) [@Bosda\_Di\_Chi\_of\_Tricor](https://boards.straightdope.com/u/Bosda_Di_Chi_of_Tricor)\ **Post date:** [June 7, 2007, 8:57pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/1 "2007-06-07T20:57:09Z")
I am 44 years old, employed for almost 15 straight years, & I have never taken out a bank loan. I always borrowed from relatives. But now, I really need to establish credit. I have had my own credit card for more than 10 years, repaid in full every single month. I have no debts. My Father’s drinking, & our inability to communicate meaningfully make a cosigning impossible. Help, please? ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [June 7, 2007, 9:00pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/2 "2007-06-07T21:00:50Z")
Your ten-years of perfect payments on your credit card have established for you a decent credit record. All you need to do is go into your local bank and ask about loans, then fill out a bunch of paperwork. They will check your credit and make you an offer. What is the purpose of the loan, and do you have any assets to offer as collateral? ---
**Author:** ![Belrix](https://avatars.discourse-cdn.com/v4/letter/b/ed655f/32.png) [@Belrix](https://boards.straightdope.com/u/Belrix)\ **Post date:** [June 7, 2007, 9:08pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/3 "2007-06-07T21:08:33Z")
[QUOTE=Bosda Di’Chi of Tricor] I am 44 years old, employed for almost 15 straight years, & I have never taken out a bank loan. I always borrowed from relatives. But now, I really need to establish credit. I have had my own credit card for more than 10 years, repaid in full every single month. I have no debts. My Father’s drinking, & our inability to communicate meaningfully make a cosigning impossible. Help, please? [/QUOTE] If you have had credit card for 10 years I’d think you have an established credit rating out there. Many states allow one free credit report per year from the standard suppliers, you should pull your credit record and see what’s recorded. [Experian](http://www.experian.com) [Transunion](http://www.transunion.com) [Equifax](http://www.equifax.com) All three have fee-based reporting services to get your numeric score but often a non-scored report is free. ---
**Author:** ![Rigamarole](https://avatars.discourse-cdn.com/v4/letter/r/77aa72/32.png) [@Rigamarole](https://boards.straightdope.com/u/Rigamarole)\ **Post date:** [June 7, 2007, 9:25pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/4 "2007-06-07T21:25:15Z")
Don’t worry, they’ve been keeping tabs on you for a long time now, you just didn’t know about it. 🙂 I would second the recommendation to go ahead and look at your credit reports first though just to make sure everything is accurate. Use [http://www.annualcreditreport.com](http://www.annualcreditreport.com) to get all 3. (note that this is the _only_ legitimate site to get your credit reports from, besides going to Experian/Transunion/Equifax’s sites directly. ---
**Author:** ![R.P.McMurphy](https://avatars.discourse-cdn.com/v4/letter/r/7993a0/32.png) [@R.P.McMurphy](https://boards.straightdope.com/u/R.P.McMurphy)\ **Post date:** [June 7, 2007, 9:34pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/5 "2007-06-07T21:34:35Z")
Just a thought. Find out if there is any credit union you can join, maybe at work or at a school you attended (even as an alumnus you might qualify). At a credit union, especially for a first loan, the rate may be better and the process may be much easier. It’s worth a try. Do shop around though. Lending money can be a scummy business. Try to get a simple interest loan with no prepayment penalties, no baloon payments, etc. If you can secure the loan your rate will be better. A little education can go a long way. ---
**Author:** ![MarcusF](https://avatars.discourse-cdn.com/v4/letter/m/67e7ee/32.png) [@MarcusF](https://boards.straightdope.com/u/MarcusF)\ **Post date:** [June 7, 2007, 9:36pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/6 "2007-06-07T21:36:18Z")
It may be different in the States but in the UK, with that sort of record, you could get a loan online in 10 minutes from any number of institutions. Do you have something like [moneysuperket.com](http://www.moneysupermarket.com/loans/)? ---
**Author:** ![BMalion](https://avatars.discourse-cdn.com/v4/letter/b/e274bd/32.png) [@BMalion](https://boards.straightdope.com/u/BMalion)\ **Post date:** [June 7, 2007, 9:42pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/7 "2007-06-07T21:42:00Z")
I just walked into my bank, and they practically lept on me to loan me money. You are the fondest dream of a lending institution. Is this for a home-loan? ---
**Author:** ![Doug\_Bowe](https://avatars.discourse-cdn.com/v4/letter/d/df788c/32.png) [@Doug\_Bowe](https://boards.straightdope.com/u/Doug_Bowe)\ **Post date:** [June 7, 2007, 9:58pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/8 "2007-06-07T21:58:38Z")
Agree with everything everyone else has contributed so far. Here’s a little trick to make a good first impression. I was told this 35 years ago by a bank officer who was a friend of my Dad. Most people who want a loan walk right in to the bank and ask for it. And spend from 30 minutes to an hour waiting for a loan officer. Call first and ask to speak to a loan officer. When you get one, ask to make an appointment. You’ll probably be told to come on in now. A couple of things are in play here. You’ve demonstrated that you value your time and the loan officers time (positive impression), and you should save some time, too. ---
**Author:** ![Bosda\_Di\_Chi\_of\_Tricor](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bosda_di_chi_of_tricor/32/16845_2.png) [@Bosda\_Di\_Chi\_of\_Tricor](https://boards.straightdope.com/u/Bosda_Di_Chi_of_Tricor)\ **Post date:** [June 8, 2007, 9:30pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/9 "2007-06-08T21:30:44Z")
[QUOTE=BMalion] I just walked into my bank, and they practically lept on me to loan me money. You are the fondest dream of a lending institution. Is this for a home-loan? [/QUOTE] No, car. And every bank I’ve contacted has treated me like crap. ☹ Won’t even look up any thing on me. ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [June 8, 2007, 9:36pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/10 "2007-06-08T21:36:39Z")
What do you mean they won’t look anything up on you? Have you filled out an application? A car loan is secured – an unemployed orangutan can get one if he wanted. ---
**Author:** ![Bosda\_Di\_Chi\_of\_Tricor](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bosda_di_chi_of_tricor/32/16845_2.png) [@Bosda\_Di\_Chi\_of\_Tricor](https://boards.straightdope.com/u/Bosda_Di_Chi_of_Tricor)\ **Post date:** [June 8, 2007, 9:46pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/11 "2007-06-08T21:46:02Z")
[QUOTE=friedo] What do you mean they won’t look anything up on you? Have you filled out an application? A car loan is secured – an unemployed orangutan can get one if he wanted. [/QUOTE] They wouldn’t even talk to me. 😕 ---
**Author:** ![gazpacho](https://avatars.discourse-cdn.com/v4/letter/g/6f9a4e/32.png) [@gazpacho](https://boards.straightdope.com/u/gazpacho)\ **Post date:** [June 8, 2007, 9:54pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/12 "2007-06-08T21:54:42Z")
Am I correct in assuming that you have a checking account with a bank or savings and loan and it is this institution that is not interested in loaning you money? That is surprising to me. I got a loan for a new car from a bank with a ten or so year history of credit cards and bank accounts. Have you tried something like eloans? They say they lend money for cars. Bankrate looks like it has applications for car loans. Both of those say they lend for new and used. ---
**Author:** ![Baron\_Greenback](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/baron_greenback/32/48_2.png) [@Baron\_Greenback](https://boards.straightdope.com/u/Baron_Greenback)\ **Post date:** [June 8, 2007, 10:11pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/13 "2007-06-08T22:11:51Z")
**Bosda** , you have a long employment history and an established credit record with no blemishes. You are just the type of person a bank likes to lend money to. Why then do you think you need a co-signee on the loan? ---
**Author:** ![Bosda\_Di\_Chi\_of\_Tricor](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bosda_di_chi_of_tricor/32/16845_2.png) [@Bosda\_Di\_Chi\_of\_Tricor](https://boards.straightdope.com/u/Bosda_Di_Chi_of_Tricor)\ **Post date:** [June 8, 2007, 10:14pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/14 "2007-06-08T22:14:07Z")
[QUOTE=Struan] **Bosda** , you have a long employment history and an established credit record with no blemishes. You are just the type of person a bank likes to lend money to. Why then do you think you need a co-signee on the loan? [/QUOTE] Read the above. Nobody wants to know me. I’m baffled. ---
**Author:** ![Mr.Slant](https://avatars.discourse-cdn.com/v4/letter/m/c57346/32.png) [@Mr.Slant](https://boards.straightdope.com/u/Mr.Slant)\ **Post date:** [June 8, 2007, 10:21pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/15 "2007-06-08T22:21:40Z")
Based on what you’ve said, I’ll bet either your appearance or demeanor are failing to trigger the “eligible customer” heuristic your friendly neighborhood banker employs. Dress nicely and act like a polite gentleman who knows he’s going to get a loan from the place. Incidentally, from what I’ve read, the UK loan market is like the US loan market a decade or so ago. The credit scoring system hadn’t managed to popularize the notion of extreme sub-prime lending like it has in the US. Bear in mind most of this reading was 4 or 5 years back, so I may be remembering the past. ---
**Author:** ![Athena](https://avatars.discourse-cdn.com/v4/letter/a/35a633/32.png) [@Athena](https://boards.straightdope.com/u/Athena)\ **Post date:** [June 8, 2007, 10:22pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/16 "2007-06-08T22:22:04Z")
[QUOTE=Bosda Di’Chi of Tricor] They wouldn’t even talk to me. 😕 [/QUOTE] What does this mean, exactly? When you call the bank and ask to talk to a loan officer, what does he say? ---
**Author:** ![Duckster](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/duckster/32/1244_2.png) [@Duckster](https://boards.straightdope.com/u/Duckster)\ **Post date:** [June 8, 2007, 10:27pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/17 "2007-06-08T22:27:46Z")
[QUOTE=Belrix] Many states allow one free credit report per year from the standard suppliers, you should pull your credit record and see what’s recorded. [/QUOTE] While several states have their own state laws entitling their residents one free credit report per year (Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey and Vermont), there is a federal law doing the same for everyone nationwide. > [@](#): > > The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the files of the nation’s consumer reporting companies. The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the FCRA with respect to consumer reporting companies. Source: [Free Credit Reports | Consumer Advice](http://www.ftc.gov/bcp/conline/pubs/credit/freereports.shtm) The only official URL to obtain this free credit report is —\> [http://www.annualcreditreport.com/](http://www.annualcreditreport.com/) Any and all others are imposters. > [@](#): > > Only one website is authorized to fill orders for the free annual credit report you are entitled to under law – [annualcreditreport.com](http://www.annualcreditreport.com/). Other websites that claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring” are not part of the legally mandated free annual credit report program. In some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period. If you don’t cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card. > > Some “imposter” sites use terms like “free report” in their names; others have URLs that purposely misspell [annualcreditreport.com](http://www.annualcreditreport.com/) in the hope that you will mistype the name of the official site. Some of these “imposter” sites direct you to other sites that try to sell you something or collect your personal information. > > [annualcreditreport.com](http://www.annualcreditreport.com/) and the nationwide consumer reporting companies will not send you an email asking for your personal information. If you get an email, see a pop-up ad, or get a phone call from someone claiming to be from [annualcreditreport.com](http://www.annualcreditreport.com/) or any of the three nationwide consumer reporting companies, do not reply or click on any link in the message. It’s probably a scam. Forward any such email to the FTC at [spam@uce.gov](mailto:spam@uce.gov). ---
**Author:** ![Cervaise](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cervaise/32/16693_2.png) [@Cervaise](https://boards.straightdope.com/u/Cervaise)\ **Post date:** [June 8, 2007, 10:31pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/18 "2007-06-08T22:31:46Z")
[QUOTE=Bosda Di’Chi of Tricor] They wouldn’t even talk to me. 😕 [/QUOTE] Take off the ski mask before going into the bank. You might have better luck. ---
**Author:** ![Baron\_Greenback](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/baron_greenback/32/48_2.png) [@Baron\_Greenback](https://boards.straightdope.com/u/Baron_Greenback)\ **Post date:** [June 8, 2007, 10:33pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/19 "2007-06-08T22:33:47Z")
[QUOTE=Bosda Di’Chi of Tricor] I’m baffled. [/QUOTE] Then so am I. I imagine you’ve tried a bank that you currently have business with? Don’t take this the wrong way, but I get the impression that you and your family have, umm, perhaps a _complicated_ relationship? If this is the case then perhaps local branches are a bit wary. If this is the case then fuck 'em, get your loan online. Good luck whatever you end up doing. Actually come to think of it - this is a loan for a car? Shit man, the credit score you need for a car loan is very low. Can’t you get finance from the dealer? ---
**Author:** ![Baron\_Greenback](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/baron_greenback/32/48_2.png) [@Baron\_Greenback](https://boards.straightdope.com/u/Baron_Greenback)\ **Post date:** [June 8, 2007, 10:40pm UTC](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179/20 "2007-06-08T22:40:58Z")
[QUOTE=Mr. Slant] Incidentally, from what I’ve read, the UK loan market is like the US loan market a decade or so ago. The credit scoring system hadn’t managed to popularize the notion of extreme sub-prime lending like it has in the US. Bear in mind most of this reading was 4 or 5 years back, so I may be remembering the past. [/QUOTE] Sub-prime lending for mortgages has been widely available here since the mid-nineties (after the property crash I guess plenty of people needed this). There have been legitimate companies offering small loans at mafia rates to extreme sub-prime clients for many, many years before that though. [Next page](https://boards.straightdope.com/t/how-do-you-get-a-first-bank-loan/407179.md?page=2)