@CreditPoor wrote:Think about it this way. You are the lender and a 70 year old man with very little savings, high DTI, recent debt, limited retirement savings and little to no collateral asks you for 50k....You know life expectancy for a man is 74, would you loan your money?
if I was a lender in this situation, I'd be thinking this person is looking to cash out and move to the Philippines and live out his golden years and my moneys gone. There is simply way more risk on the lenders side with really no upside to this loan.
I would argue regardless of age such an applicant for a loan would be a very questionable approval. Said another way, long before age was even considered, such an application would have been denied.
@MeCasa wrote:Not a bad idea, just trying to lower some high interest credit card debt. I'm house rich and cash poor.
Given you are house rich, does it make sense for you to go for a HELOC? I would think that would give you much better chances of approval, a lower interest rate, and a tax deduction on the interest paid for the loan.
@CreditPoor wrote:Point is banks consider age when lending, whether we feel that's right or not. Algorithms factor in age all the time, as in why does a 40yr old man not have a car loan, mortgage and 1 year of credit history in lots of examples
Few people should have a mortgage. Almost nobody should have a car loan or fleece. Some of them pay it off. Many of them fall over and end up in court (being sued or bankruptcy). Loans are tricky in that they make people stupid. They make people stupid by enabling them to spend money they won't have for 30 years and maybe they won't ever have it.
As to age, I would NOT loan a lot of money to a 70 year old man who is heavily in debt with few assets. No sir. And many people who reach this age just let themselves go because they don't plan to be around to clean up the mess. They see their impending death as "the discharge". They leave their kids to deal with an estate that has less than nothing.
My mother has a bunch of maxed up credit cards that she's tossing minimum "Don't sue me this month." payments to. She has no plans to better herself, and she's content with letting everything fall apart and land wherever it does because she doesn't think she has long to live. Earlier this year she started to seriously neglect her own health and it got so bad that I almost had to file a case with Adult Protective Services and have the police look in on her. Thankfully, I found my uncle and got him to convince her to go to a doctor. She was threatening to hide the full extent of her illness while she had not eaten in a month and couldn't make it down the stairs to go to the bathroom. She said she'd "force herself to look okay" and then "never speak to [me] again". Which if that had gone on much longer, would have only been two or three weeks.
For the younger people, a loan is how to throw money in the trash on bank interest and taxes, and that's about it. Then you congratulate yourself on owning something that's worth 60% less in five years. That's how car loans work. Car loans are so bad for most people that they easily exceed mechanic's bills in interest and depreciation.
Or you can "trade it" and get a complete insult. If they give you a good trade-in offer, they'll adjust the deal somewhere else to take it from you there. There is no such thing as a free lunch....at a car dealership, or bank.
That's why the only people who trade in a car are not brilliant to say the least, or are off-fleece, or so wealthy they don't care what the dealer gave them for it, or "this car has a lot of problems and the only way to slip it past anyone is offer it to Carvana".
My mom bought a 2002 Pontiac Grand Prix GTP off the lot, brand new. Several months in, she was at a stop light and someone slammed into the back of it. The insurance paid the repair shop, but the car developed all sorts of behaviors. Like the back windows rolled down but not up, and the transmission never acted right after that.
She said her and her second husband pushed the windows up with their hands and traded the car in at the dealer for a 2003 Impala and the dealership never even checked it and paid them trade-in value on a 9 month old car.
I will give her this. What she lacks in generalized intelligence, she makes up for with sheer lack of conscience. Someone was going to eat that piece of crap and by God it wasn't going to be her. Unfortunately, her score with car dealers are 1 "getting that piece of crap past them in the finance room" and several "I bought a car that was repaired with Bondo and headlight restoration kits and paid twice what they were worth and financed them at 'mafia interest' with something called Credit Acceptance Corporation which is probably every bit as bad as it sounds."
Sadly, her bankruptcy was packed with mortgages and bad car loans and credit cards and personal loans and tax debt that was racked up when she was working her butt off to enable exes 2 and 3 who lived off her, drank her money, smoked her money, and made her pay to remodel both houses that she lost in divorce while beating her up and cheating on her.
There's a moral to the story, and that is, she spent her earlier years doing everyone wrong and cheating on my dad and ripping him off in divorce court and setting my life up for tragedy and failure, and it didn't work out well for her because she was so blinded by the pursuit of her own selfish evil that it rebounded upon her and she merely lost 20 years of her life and most of her retirement savings.
So I'm assuming that someone bought it and had a lot of issues thinking they got a great deal on a car that was about a year old, at least at first.
Body shops can do amazing work. They can make a smashed up car look brand new again, but it doesn't mean it will work right.
Not having a recent history of installment or mortgage loans and you're 40 means that you've pulled the credit report of a person who knows what debt, interest, and taxes are. Perhaps by using an encyclopedia, or Webster's.
Obligations suck.
Tim Allen correctly defined an obligation in the movie Jungle 2 Jungle as being, "It means something you really don't want to do, but you have to anyway." Not fulfilling your obligations, means punishment of some sort awaits you on the other end. So you drag yourself out of bed half-asleep to go pull overtime, to pay the bank interest, on the thing that's too expensive.
https://www.youtube.com/watch?v=UbxUSsFXYo4
Nothing's changed since Dolly Parton sang this.
https://www.youtube.com/watch?v=caBzvF9hwkI
Or for The Orville fans. 
There's nothing more awe inspiring to me than a person who went to bankruptcy court already on a bankruptcy-inducing car fleece and a bunch of debt cards, and they're out of bankruptcy with a $500 limit Fingerhut card wondering how they can finance a camper and a bass boat.
The only person you cheat for sure when you take on debt is yourself, and the people in your household who will have to suffer because of your fool's errand.
Getting out of a bankruptcy and repeating the same poor behaviors (credit card binge spending, financing expensive cars, etc.) that led there is tragically common. People don't learn anything except that they got away with it last time and certainly there "must be some way to work the system" again. Watching these people re-emerge from bankruptcy is like watching a person get out of rehab and he's drinking again while he tells you they cured him.
@MeCasa wrote:I've had a battle plan where I have been paying down debt and palnning to borrow unsecured $50,000. My score is up to 773 but now I'm starting to think they may not lend me money because of my age, I'm 70. I know there is no set answer but ya'll know more about this so your opinions mtter to me.
They're not even allowed to take that into account.
And they wouldn't, anyway.
