Thursday, November 21, 2013

Converting Bank Turn Down Deals into Good Cash Deals The Old Fashioned Way

When working for a year as an in-home sales consultant in the interior remodeling industry in the Mid Atlantic region for a large bathroom remodeling company, I found that a large percentage of prospective customers (disproportionate to the qty of leads assigned by this particular company) were in dire need of bathroom remodeling solutions and extremely short on the ability to come up with funds necessary to complete the work needed.

I found that many elderly veterans, single income households, medically challenged individuals were particularly vulnerable, and my heart went out to them to try to find a solution for them.  In most cases an acrylic wall and tub type solution which is covering up an older bathtub and surrounding tile wall with custom formed acrylic system made financial sense as it seems like the cheapest viable solution between $4500 to $6500 depending on design, colors or options that a customer chose.  Companies like this one I  worked for typically collect 1/3 up front with each order, or 1/10th up front if the customer was credit worthy with a 700 FICO score or higher.  Many companies in the industry were relying on financial companies like GE Consumer Bank to pick up the financing of deals, or used their own unique financial facility solution providers with specialists providing access to underwriting tools to assess an acceptable level of risk to accept financing deals.  GE pulled out of this business, leaving consumers who were in the most need vulnerable to increasing bank turn downs or BTDs as they are known in the industry.

I found that many BTD deals (almost 70%) could be converted to good deals with a little coaching and support from a nonprofit like United Credit Education Services or UCES ( which offered guaranteed satisfaction and a high success rates in helping improve consumer credit scores to become within an acceptable range for most remodeling firms.  Within 6 to 12 months, many vulnerable customers who were given an option to be put on a layaway type program could also improve their credit profile scores to the point of qualifying for credit terms.  My advice after consumers were "educated" to the point that they were able to budget and save for the needed projects, was to avoid the financing traps of these remodel terms with interest rates as high as 26% in come cases.  When people prioritized their savings into a budget plan, they were able to convert to other options paid for almost entirely as cash deals, or phase in deals, where they were able to start with just a portion of a project rather than fund the entire project.

This strategy helps many customers accomplish their goals, and I would highly recommend the services of UCES through as a channel to help people.  Not only does an affordable line of credit become possible with a 730+ FICO score for either the homeowner or the small business owner, but the homeowner's life is changed for the better with the education and experience that comes from following the guidance offered by UCES on the path toward credit repair and restoration.

There are surprises when it comes to some credit profiles.  Often inaccurate, obsolete and erroneous derogatory information finds its way onto 80% of credit reports, and it is up to the consumer to challenge and request that those derogatory items be removed.