Have a relationship with the bank! - Page 1 What a good relationship with the bank can earn you By Mo2 on February 24th, 2008

Everyone dreads the bank. The bank makes so much money that it’s almost makes people sick looking at the numbers (well not me). Banks are necessity that’s why they make money; their very presence will never go away. Why? Because 90% of the people in our society are careless with money and by putting their money in the bank they can at least feel safe.

Of course, this is a joke. The banks aren’t what they used to be; they offer more services that most can understand. By having a strong relationship with the bank it can a very advantageous thing. You need to look beyond the monthly fees and start thinking about ways to use the bank in your favor.

In this article I’ll talk about some things you need to strengthen your relationship with the bank and how that can benefit you. Of course, there is more than one way for everything and I am only giving you examples, be creative!

Credit Rating
Having a strong credit rating can help you with the bank. A quality credit rating means that the bank can trust you to a certain extent. It takes some work to have an exceptional credit rating and you really should be careful of what you do with your credit. Which means if you have a credit card, pay off your balance in full every month and never default on any payments no matter what.

I sure hope you do just that because it’s not only hurting your credit rating it’s one of the dumbest things to carry a balance on your credit card and to default a payment on a loan. One word hint, interest I’ll get into this more in another article. You can read my credit card article to get a good idea as to why you shouldn’t be carrying a balance on your credit card.

Have assets both liquid and illiquid
There’s more than one reason to save and that’s to help you build your relationship with the bank. By having any kind of assets it strengthens your case when you actually do need a loan from the bank. It means that you can back up your promise by showing that you were financially responsible enough to collect assets that are actually worth something in this world of ours.

Yes that means that the Gordie Howe rookie card and Aunt Patsy’s painting are assets although these are considered somewhat illiquid assets. I’m talking more on the lines of savings accounts, term deposits, bonds, stocks, mutual funds, and real estates just to name a few. By having a combination of these assets also means that you are well diversified in terms of risk and can also be favourable for you.

Buys some Guaranteed Investment Certificate (GIC) and mutual funds
The bank wants you to buy some of their products because they need to make money off of you. By investing in their products that means you are worth that much more to them. Also, by buying their investment products you are showing them that you are a longer-term client and that’s a very big plus in terms of building a relationship with the bank.

Have a strong source of income
Income is important because you need to borrow money you need to show that you can make the monthly interest payments on the loan you are taking. But if you have a six-digit income and are a dummy in terms of finances then the bank will not lend you money.

>>Page 2 - Have a relationship with the bank!

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