Why is interest rate higher for Full-Timers

Come on guys, my story was one of humor... It would take a moron to look at a Prevost bus and not know its special with a capital "S"! I guess I should have added a few smiley faces. :C;):)

Responsible people with excellent credit can almost always get a loan at the best rates. Regardless of what the live in.

Foodsman wrote:
Hi Folks,

I’m compelled to tell a sad story and asked anyone looking for something happy to please go to another post. I’ll stop a moment allowing you time to make another selection.

First of all I must plead guilty because I too have thought poorly of RVer’s and feel its only right that I share my experience with you... I hope you don’t judge me too harshly.

It was some years ago but I remember it like it was yesterday. It was a bright sunny day in Tampa, Florida with a hint of a salt water smell wafting in from the bay.

I was on my way home and stopped to do a little food shopping at a local Publix Supermarket. As I was walking out of the store I noticed an older couple going out in front of me. They were every bit 65 if they were a day and seemed quite happy as they pushed a food cart across the parking lot.

I stood there both shocked and astonished as these two elderly people boarded a Prevost Motor coach. You can guess what I thought, the same thing you’re most likely thinking right now as you read this story . “I’ll bet their homeless”!

Yes, a very sad story for sure, but one needed to be told and I for one feel much better at the telling... Harry

:H
Son that Prevost cost more than any house you could most likely ever afford to buy. Which leads me to believe that you are not an RV'er, but than again you did know what make the MH was. Trolling are we:?

kcmoedoe said: "You heard it from a friend and I saw it on the internet, if that isn't proof positive, I don't know what is. And to top it off, someone I don't know, never met, who posts behind a screen name, said it is not open for debate."

I did not say “it is not open for debate”, I said “my friend and his insurance company are not open for discussion”. Meaning, it was a conversation between friends and would be unseemly between friends to give his name and/or company!

I don’t know what exactly prompted your post but I’ll say two things.

1. I presented nothing intended as fact based, I was making conversation and relating a story.
2. If the only conversations we had in this life were all fact based, it would sure cut down on a lot of conversations and some good and funny stories!

Just my thoughts,

Harry

Foodsman wrote:
Lender and insurance companies always seem to be open for all forms of conversation with reflection on "The Good - The Bad & The Ugly"...

A friend of mine was a big wig with one of the major car insurance companies and I asked him one afternoon "what is the biggest fraud/hoax perpatrated on the unsuspecting public by insurance companies?" He didn't hesatate even a moment when he said "Bad Credit Rates"!

He said the primary reason for the higher rates is "people with poor credit generate more claims and higher amounts of money of than those with good credit"! So I asked him where the fraud/hoax is and he said "there is nothing other than insurance company BULL to substantiate those rates.

It all started in a boardroom where the decision was made. The rationall was the banks charge more for people with bad credit so why don't we? The bad credit folks hiking up frequency and $ amounts could not be substantiated and was never even an issue. They had an avenue to make more money "BIG MONEY" and took it.

And NO, my friend and his company are not open for discussion... :)

Harry

You heard it from a friend and I saw it on the internet, if that isn't proof positive, I don't know what is. And to top it off, someone I don't know, never met, who posts behind a screen name, said it is not open for debate. I must say I have never seen a stronger case for "case closed". I do, however, hope the rest of the insurance world never catches on to your truths. Since people with bad credit have higher rates than people with good credit, and we all know that BIG MONEY will never give up that BIG MONEY, it they leveled the playing field, people with Good Credit will end up paying more, which is very bad for me.

Lender and insurance companies always seem to be open for all forms of conversation with reflection on "The Good - The Bad & The Ugly"...

A friend of mine was a big wig with one of the major car insurance companies and I asked him one afternoon "what is the biggest fraud/hoax perpatrated on the unsuspecting public by insurance companies?" He didn't hesatate even a moment when he said "Bad Credit Rates"!

He said the primary reason for the higher rates is "people with poor credit generate more claims and higher amounts of money of than those with good credit"! So I asked him where the fraud/hoax is and he said "there is nothing other than insurance company BULL to substantiate those rates.

It all started in a boardroom where the decision was made. The rationall was the banks charge more for people with bad credit so why don't we? The bad credit folks hiking up frequency and $ amounts could not be substantiated and was never even an issue. They had an avenue to make more money "BIG MONEY" and took it.

And NO, my friend and his company are not open for discussion... :)

Harry

wa8yxm wrote:
This thread reminds me of a story.. A man in the covered wagon recovering business went to the bank and was denied.. He was... Upset... (to put it milely) and got into a bit of a fight on his way home.. When he took off his coat folks noticed his trousers.. You see, he had made them out of the canvas he used to cover wagons, and when he ran out of thread he riveted the pockets on.

It was not much longer later the same man walked into the bank again and approached the same loan officer and ask: "Do you remember me?" the man did not, and he told him "You denied me a loan" the officer informed him the bank was under new ownership and perhaps he could reapply.. The applicant told him he knew the bank was under new ownership but he was there not to apply for a loan, but to inform the him (The loan officer) that he was fired. The ex-loan officer told him only the owner can fire me.. The new owner said "I know"

Levi Strauss, of Blue Jeans fame... Was the former applicant now owner of the bank.

Sometimes..... Loan officers get it W*R*O*N*G*! Levi bought the bank for one reason.. I'm sure you can figure it out.

There isn't a bank in the country that doesn't have a big file full of people with great stories who wanted to borrow money. Every person in that file promised they would pay back the loan, with interest. Eventually, the bank came to realize those people had a good story and made the loan. Those stories turned out to be just that, stories. The money lost on the loans in the defaulted loan file was made up by charging higher rates of interest on the people who didn't rely on good stories to get loans.
Bankers live by rules, one of which is turning down a loan that would have paid out is a small mistake. Approving a loan that doesn't pay out is a BIG mistake. You get to make more small mistakes than big mistakes and still keep your job, regardless of what Levi Strauss supposedly did.

If you look at the ads in the FMCA or Motorhome magazines you will find lenders for RVs. There are definitely companies out there to compare rates.

This thread reminds me of a story.. A man in the covered wagon recovering business went to the bank and was denied.. He was... Upset... (to put it milely) and got into a bit of a fight on his way home.. When he took off his coat folks noticed his trousers.. You see, he had made them out of the canvas he used to cover wagons, and when he ran out of thread he riveted the pockets on.

It was not much longer later the same man walked into the bank again and approached the same loan officer and ask: "Do you remember me?" the man did not, and he told him "You denied me a loan" the officer informed him the bank was under new ownership and perhaps he could reapply.. The applicant told him he knew the bank was under new ownership but he was there not to apply for a loan, but to inform the him (The loan officer) that he was fired. The ex-loan officer told him only the owner can fire me.. The new owner said "I know"

Levi Strauss, of Blue Jeans fame... Was the former applicant now owner of the bank.

Sometimes..... Loan officers get it W*R*O*N*G*! Levi bought the bank for one reason.. I'm sure you can figure it out.

tatest wrote:

Foodsman wrote:
tatest said: Substitute "itinerant" or "drifter" for "full timer" and think again about the question. You'll find many other lenders making that connection, and will not make a loan at any rate.

Wow, I've been lurking around the forum for just over a month now and this is the first time I've seen Full-Timers as "drifters, deadbeats" or worse... I always thought a Full-Timer was a choice, especially by retired folks, as a way to enjoy life and see this great country of ours.

A DEADBEAT, WoW I would think there are some who would not agree or appreciate that association.

Harry

I did not say "deadbeat" and did not so categorize full timers. But loan committees look at people without a fixed location differently than those tied to real property. It is a fact of life in our society.

They are looking at the collateral differently. Not necessarily the borrower. It is still the three c's and increased risk in any of them increases the rate.