Why is interest rate higher for Full-Timers

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.