No matter where you conduct your financial business, one thing is sure. That institution is out to make a profit. Even if you do your banking at a credit union, which is technically a non-profit organization, companies and organizations in financial services need to show more money coming in that what’s going out if they are to stay afloat. Whether you take out personal loans, a mortgage, or just a savings account, make sure that your banker has your best interests at heart.
No one’s insinuating that your bank or other financial institution shouldn’t make a profit. It is precisely because of the black ink on their ledgers that they are able to offer loans at decent rates. As a matter of fact, in general, the more profitable a bank is, the more reasonable rates you will generally find available on loans given there.
So, how can you tell when your banker is really in your corner? It has been well said that if you take care of the customer, he will take care of you. This is possibly truer in banking and financial services than in any other business. We’re all reasonably intelligent people. And, in general, we have no trouble picking up on it when someone is trying to sell us a bill of goods instead of helping us to get what we really want and need.
One example to look out for with lending institutions is the lending agent who wants to lend you more money than you want to borrow. Often, just like salesmen, loan officers are paid commissions. If a lending officer is trying to get you to take out more in personal loans than you are asking for, it should put up an immediate red flag. This guy does not have your interests at heart.
Another thing to look at is whether or not your bank is willing to take a chance on you if your credit is less than perfect. It’s easy to find yourself in a bad credit situation in today’s world, but many banks and credit unions are still willing to lend you money, especially if you have something for collateral. Of course, the interest rate may be a little higher if your loan is considered higher risk, but it is not impossible to obtain one. If it is impossible through your bank, perhaps it’s time to consider banking elsewhere.
Photo via 1Happysnapper (photography)