07-810 Credit Score

In 2010, I went to the only bank I have had for decades, Wells Fargo, and applied for a $10K signature loan at 9.9%. It was like an open check. I would spend whatever I needed (about $5K for a new water heater and furnace) and pay it back at a fixed rate. I was denied. Here's the twist, I did what you're never suppose to do: put long term debt on a credit card. Well, American Express gave me a better deal than the deal my bank wouldn't give me. I got the same 9.9% but with the first year interest free.

The real question is, why did my bank deny me?

Let's start with what they found out about me. I had an 810 credit score. I had $200K in equity. I had $0 debt. My wife and I made just short of $40K a year. That all sounds great for such a small loan but remember, they denied me.

So, here are the reasons I failed. I had too much credit and I had no debt history. I was too responsible, or better said, I was too conservative for the banks. I was advise to take on a $5K debt for 2 years in order to fix the problem. In other words, I'd never paid interest. For the banks, that was a nonstarter. It was the Great Recession. Until I paid my dues, I'd not be trusted with my bank's money because my bank knew I was not a viable revenue stream. I may not be a risk, but I was not a reward either.

I had never incurred debt before, at least not a significant debt (more than this $5K limit). I'd never been late on a payment; in other words, I'd never paid fees. And, I had too much credit – I was too trusted. The combined credit limit on my four cards was in the neighborhood of $100K. At this time, we're not rich but not in debt. But they didn't care. They said credit was debt. Because I was so trusted, I was so penalized.

So, I wonder what my credit score is now. I paid off the debt and a very modest amount of interest (less than $300) because I am loathed to play their game. Of course, I have played their game. I have lowered my debt limit to about $30K. I have a 3-year debt history because, up until last month, I'd been in constant debt to at least one credit agency. However, I've only paid this limited interest because of multiple 0% loans I am fortunate enough to qualify for. I thank my father, who was a young boy when the Great Depression hit, for teaching me the ways of financial hygiene. Although I've been punished for it, I will not compromise his truth.

You know what? Now that I think about it, I don't care what my credit score is. I have done what they said. I can only expect it to be higher. But how high? Do I really care? I mean, they didn't care about me when I needed heat for my home. Honestly, if you don't make the banks money, then why do you matter to them? This has led me to a further question: who are the masters and what is their whip?