Ever been denied for a loan? You probably didn't feel warm and fuzzy afterward.
NetBanker Jim Bruene describes a recent credit card request that got rejected. He makes a few good points about how it looks from a consumer's perspective. The bank may have had a good reason for saying no, but I suspect Jim will not bring business to that bank in the future (I'd bet - without knowing a thing about his finances - that he'd be a decent customer to have on the books, and that the application was rejected due to a mistake or a goofy rule).
For better or worse, lending decisions are mostly automated and based on credit scores. That makes it hard for somebody who doesn't look good in the database but who is really a good borrower. Banks can't look at everybody individually, but it might help to look at some people.
There's also room for improvement in the rejection process. Think how loyal you'd be to a bank that turned you away with useful information about how and when to come back. Instead, most banks just tell you to "beat it."
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