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Replies: 14
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All-In [30804]
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Question for those of the boomer generation and up.
Feb 11, 2021, 9:13 PM
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What was it like to get loans before the credit score thing started in the late 80’s? Now it’s easy. Have a decent score and show a few check stubs. Did y’all have to actually take lenders out for drinks back in the day to get a loan? Maybe a handy in the back office?
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Heisman Winner [135674]
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Easy
Feb 11, 2021, 9:17 PM
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Dress nice, have the right address, a pale face helped a lot too.
They pulled records, called references, and calculated a score, it just took them longer.
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Oculus Spirit [83006]
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Bought my first house in N. Augusta in 90.
Feb 11, 2021, 9:17 PM
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Just remember interest rates were high.
My realtor, a middle aged cougar divorcee was up for anything.
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All-In [43598]
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Jewbangher?***
Feb 12, 2021, 8:03 AM
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Lot o points [163010]
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Try buying around 1981 - 16% iirc
Feb 12, 2021, 8:54 AM
[ in reply to Bought my first house in N. Augusta in 90. ] |
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had "negative amortization loans" - which meant your payments did not cover the interest, but payments increased as the loan matured to cover this. It was a weird time.
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Orange Blooded [2883]
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Not that I am an old fart
Feb 11, 2021, 9:23 PM
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even if I am. Basically you had to prove income (paycheck) and length of employment (letter) and it was best if you had an account with them. Never seemed too tedious to me. Heck, maybe even easier than today but I ain't looked for a loan in a while. (fingers crossed)
Not sure if the pale skin mattered in my neck of the woods but possibly so. I actually got good advice from my banker when I was young on frivolous purchases such as a Harley - which I didn't need, only wanted.
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Hall of Famer [24455]
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Will ditto 85. They looked at all the same stuff, it just
Feb 11, 2021, 9:42 PM
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wasn't quite as pre aggregated as it is now, though I am pretty sure Equifax and other credit bureaus were in existence in 80-ish when I got my first loans. You went into the bank or mortgage company, sat down with a loan officer in his office, you tried to look and sound respectable. If it was your first loan, it helped if they knew some family history, though that was the determinant some might think.
Partly for the reason you are asking the question, credit unions were a larger part of the scene then, and my employer had one. My first car was bought through them, and they were a little more lenient because if I missed a payment they could garnish my check and my boss would know, and my name would be #### all over town. They were all smiles and supportive, 'just us folks" - I had the loan ini 30 minutes - but they knew I didn't dare miss a payment.
So, it was a combination of them getting the same info with more phone calls, and them getting a feel for who you were. All this caused a little more of a sense that you were talking someone into giving you money that didn't belong to you.
In about 2000 I figured it was time for a refi, I logged onto a site, filled out a one pager, and by the end of the afternoon one loan had been paid off, another loan created, and a little money was in my checking account. I thought, "This can't end well." Eight years later...
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All-In [30804]
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From everybody’s answers it’s sounds like it’s much easier on the banks now.
Feb 11, 2021, 9:59 PM
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I’m still wary of these credit score branches. I just checked mine and my lowest score is 95 points lower than my highest. Seems to be somewhat of an inexact science.
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Hall of Famer [24455]
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Seems to be the case, yes. Someone in banking would need to
Feb 11, 2021, 10:10 PM
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confirm this, but it seems to be more paint by numbers now. My first car loan was held by a local credit union, my first mortgage by a local bank: my checks were sent to local addresses. They lived and died on whether their trust in me was good. Do banks even keep mortgages anymore, or are they mostly all sold off in blocks? My guess would be that with credit scores determining risk decisions, and loans being held by large funds, no one is as concerned with any individual loan, and more concerned about portfolio management. Again that is a SWAG, and a finance person would need to address that.
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Heisman Winner [135674]
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We got our mortgage at a small local bank
Feb 11, 2021, 10:23 PM
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and it came with a payment coupon book. Talk about an anachronism! If you wanted to mail a check you had to address your own envelope and make sure you mailed it in time for it to be processed before the due date.
The mortgage was sold 4 times while we held it, the first 2 resulted in new coupon books, the last 2 sent monthly bills.
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Oculus Spirit [80996]
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There's a lot of fuzzy math in credit scores, IMO.
Feb 11, 2021, 10:57 PM
[ in reply to From everybody’s answers it’s sounds like it’s much easier on the banks now. ] |
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Apparently, you have to have some credit to have good credit score, but not too much. You need to pay your bills on time, but don't pay them off. Your income nor assets seem to be calculated on how much credit you can actually get.
My credit scores can vary, at least according to Credit Karma, by about 30 points per month. I 'paid off' my credit card last month (as I do every month) and the two scores CK show went down 24 points. My credit card payoff was ~$300.
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All-In [47691]
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Bought my 1st house in 1985 in Barnwell for $58K.
Feb 12, 2021, 6:41 AM
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Sold it 4 years later for $85K. Thought I had hit the mother lode.
Don't recall any issues with financing then or on other properties. But I have an excellent credit score.
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Legend [17888]
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Just have Granddaddy speak up for you
Feb 12, 2021, 7:57 AM
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lenders understood "their" economy as well as anyone today. They just used references and gathered data a little differently...and trusted their "gut" more that those today.
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All-In [40656]
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Its funny you mention this
Feb 12, 2021, 8:00 AM
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I saw some blue haired millennial whining about how unfair credit scores are. If only this idiot knew how difficult and unfair the previous system of acquiring loans and lines of credit were. And guess what? Anyone could deny you a line of credit or a loan for any reason they deemed fit.
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Orange Blooded [3032]
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Re: Question for those of the boomer generation and up.
Feb 12, 2021, 2:59 PM
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Real simple. Went like this, on the phone.
Me: Hey John, I need $$$$$ in my account to pay for the _________ I'm picking up today.
John: No problem. Come by and sign the paper work when you can.
Me: Will do. Thanks.
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