Rant Part 2

I remember opening my first checking account. This was back in the "free checking" era. It was nice. I put money in, I used my debit card, and life went on. Eventually my mom got a credit card and added me to help me build credit. Even though she was on it, I used it and made all the payments I had it for about 2 years.

Eventually I closed that card out so I could get a card on my own. But much to my surprise I was told I did not have any credit. And so I got a "student" credit card since I was in school . It was twice as much interest and I went from a $4,000 to a $300 limit.

Several years later I was working full time, still going to school full time, and I had a wife and kids. We had two cars, both beater cars and my wife's car died. She also worked and needed a car. We had to buy another one. But oddly, the bank I had been with would not approve me for an auto loan. So we got a loan through a credit union.

We refinanced our car again through another credit union. And finally we applied for a loan through my first bank at that point and we were approved!

It only took about 2 purchases and several years later!

It is frustrating how I could be with a bank since I was a teenager, stick with them through college, have my credit card downgraded and then get turned down for a loan.

Then we went for our first home. We again tried to get approved through my bank. I got approved, but because they process was so difficult we went through someone else who got us approved and the deal done in less than 3 weeks.

The point in sharing this is to illustrate a point. My experienced sucked. And frankly, I am guessing there are many people who have had similar experiences.

Each time I changed loans, that bank got my deposit relationship. It is pretty obvious that if they offer a discount for the loan to have a deposit relationship most will take advantage of it.

I ended up starting with my initial bank and through out the years here are all the institutions I have tried.

U.S. Bank
Wells Fago
Key Bank
Qualstar Credit Union
Homestreet Bank
BECU
Alaska Federal Credit Union
Chase

So what should banks do? And more importantly, how can they create a better experience?

Look forward to my next post which will cover ideas on improving the process.