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Would you have money power with the banks after you hit the lottery?

Topic closed. 23 replies. Last post 8 years ago by grengrad.

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dphillips's avatar - littleuns
Albuquerque, New Mexico
United States
Member #5128
June 18, 2004
377 Posts
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Posted: January 3, 2009, 4:04 pm - IP Logged

I recall a lottery winner who filed for bankruptcy one week, and the next week he hit the lottery.  Talk about dumb luck!

So, I was thinking...since lottery winners do not receive their check/direct deposit into their accounts until approximately 4-6 weeks, depending upon the state, and if a winner needed a loan, would banks be willing to grant the winner a loan?

Since I would be holding the financial bargaining chip, I would not go to the bank officer begging...this  would be the scenario:

1. I have just won $5 million dollars and here is the legal documentation from the lottery office, and since you are my financial institution I have been dealing with, I would like a loan for (x) amount of dollars. Now, I would like to continue doing business with you. What do you have to offer me?

2. If you are unwilling to support me in this effort, I can give my business to x, y, or z bank.  I am sure those banks would love to have my business.

3. I have excellent credit ( I know you are going to check), and I know there would be no problem with repayment of the loan.

Now, I heard after the bankrupt winner hit the lottery, every card company and bank wanted his business.  I am not sure of his credit rating, but would it have mattered?

Finally, remember, when you win...you are in the driver's seat, you hold the power, and in these hard economic times, no bank manager in his or her right mind would you refuse you. Talk about red carpet treatment!

See Ya!-- Bye, bye!  When you win, may you glow as brightly as theSun Smiley

    tiggs95's avatar - Lottery-036.jpg

    United States
    Member #47420
    November 4, 2006
    3930 Posts
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    Posted: January 3, 2009, 4:27 pm - IP Logged

    1st thing you do is ask all your relatives to float you a 100.00 loan and not tell them you hit millions then whoever floats you a 100.00 loan is in luck and whoever said no "oh well".....Kind dirty but fun..:)

      dphillips's avatar - littleuns
      Albuquerque, New Mexico
      United States
      Member #5128
      June 18, 2004
      377 Posts
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      Posted: January 3, 2009, 5:31 pm - IP Logged

      tiggs95, great idea -- I never thought of that one. If your relatives can come through for you, then those relatives will reap the rewards of your generosity.

      See Ya!-- Bye, bye!  When you win, may you glow as brightly as theSun Smiley

        Guru101's avatar - rw6jhh
        Indiana
        United States
        Member #48725
        January 7, 2007
        1953 Posts
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        Posted: January 3, 2009, 6:10 pm - IP Logged

        Why are you promoting the act of being a sucky customer?

        Gonna win.Big Smile

          dphillips's avatar - littleuns
          Albuquerque, New Mexico
          United States
          Member #5128
          June 18, 2004
          377 Posts
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          Posted: January 3, 2009, 6:49 pm - IP Logged

          Guru101,  I am not going to promote being submissive, fearful, and non-assertive. What I mentioned is what I would do. Other LP members might decide their strategy.

          How would you react?

          See Ya!-- Bye, bye!  When you win, may you glow as brightly as theSun Smiley

            grengrad's avatar - nw rogue.jpg
            Raleigh
            United States
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            January 17, 2007
            172 Posts
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            Posted: January 3, 2009, 7:34 pm - IP Logged

            "So, I was thinking...since lottery winners do not receive their check/direct deposit into their accounts until approximately 4-6 weeks, depending upon the state, and if a winner needed a loan, would banks be willing to grant the winner a loan?"

            Yes, most definitely.

              dphillips's avatar - littleuns
              Albuquerque, New Mexico
              United States
              Member #5128
              June 18, 2004
              377 Posts
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              Posted: January 3, 2009, 7:41 pm - IP Logged

              Thanks, grengrad, for the vote of confidence!  Now, I'm geared up!

              See Ya!-- Bye, bye!  When you win, may you glow as brightly as theSun Smiley

                jarasan's avatar - new patrick.gif
                Harbinger
                D.C./MD.
                United States
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                July 30, 2006
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                Posted: January 3, 2009, 8:51 pm - IP Logged

                Yes, they would give a loan.  Credit is extremely tight right now, even if you have a good credit rating it is tough to get.  Proof of a large future income would just about guarantee a loan.  Remember a loan can be paid off at any time without penalty for the most part and of course no interest for that remaining principal.

                  justxploring's avatar - villiarna
                  Wandering Aimlessly
                  United States
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                  November 5, 2005
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                  Posted: January 3, 2009, 9:07 pm - IP Logged

                  I'm not so sure I agree.  Just because someone is coming into a lot of money doesn't mean he/she is responsible.  A lot of people with money don't pay back debts. However, if you have a good credit history as you stated, why not just use a credit card for a few weeks?  I mean, how much do you need to spend in 3 or 4 weeks?  Since you would be getting your money before the monthly bill is due, you wouldn't even pay an interest charge!

                  It's not as if banks have millions sitting around, so these things take time.  I know people with great credit and very high incomes, but it still took weeks for them to get their mortgages from a bank. Also, the reason banks lend money is to make a profit.  So lending someone money to cover only a few weeks doesn't make sense unless the interest rate is fairly high.

                  I've read a lot of posts on LP where people expect to get a considerably higher interest rate because they deposit a lot of money in a bank.  It's just not true.   Rates are sometimes negotiable, but not by very much (maybe 1/2 point) and in times like this, they don't have much room to bargain.

                  By the way, $5 million isn't that much money.  To me it is.  But to an institution like Bank of America, with over $2 trillion in deposts, it's peanuts.

                    justxploring's avatar - villiarna
                    Wandering Aimlessly
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                    Posted: January 3, 2009, 9:40 pm - IP Logged

                    Yes, they would give a loan.  Credit is extremely tight right now, even if you have a good credit rating it is tough to get.  Proof of a large future income would just about guarantee a loan.  Remember a loan can be paid off at any time without penalty for the most part and of course no interest for that remaining principal.

                    Disagree.  Jarasan, sure some loans are written that way, but what you say isn't true in all cases.  Many loans have penalties for early payment.  A short-term loan might have very steep penalties if all the interest isn't paid.

                    I began to edit my last post, but I ran out of time.  As I began to say, a ticket is just a piece of paper.  What if you die before you get the money?  Yes, I know it goes to your estate, but using a lottery ticket isn't good collateral.  Also, let's say I work at a bank & someone is saying "I've got really great credit" but I have no money to live on for 3 or 4 weeks, so I need a loan.  My first reaction would be

                    What?

                      rcbbuckeye's avatar - Lottery-043.jpg
                      Texas
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                      October 23, 2007
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                      Posted: January 3, 2009, 9:50 pm - IP Logged

                      I wouldn't be going to a bank for a loan, I would be finding the bank that paid the highest interest rates for the use of my money.

                        justxploring's avatar - villiarna
                        Wandering Aimlessly
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                        Posted: January 3, 2009, 9:54 pm - IP Logged

                        I wouldn't be going to a bank for a loan, I would be finding the bank that paid the highest interest rates for the use of my money.

                        I Agree!

                        Unfortunately, the rates are really low.  You'd be lucky to get 4%, even with a large deposit.  There are better investments IMHO.   I also wouldn't put too much money in any one bank.  The banks with the best rates often have the lowest ratings and could possibly fail.  That's one reason they offer CD specials, that is, to raise money to increase assets.

                          BuyLow's avatar - palm tree.jpg
                          Florida
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                          Member #61435
                          May 22, 2008
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                          Posted: January 3, 2009, 9:55 pm - IP Logged

                          Our money is monopoly money anyways.....the FEDERAL reserve is NOT federal at all and there are no RESERVES, in fact it's a monopoly of PRIVATE parasitic banks sucking off of us.  

                           

                          Sorry for the truth.  Don't believe it...do some research.  Fed Reserve act 1913 is a good place to start.

                            justxploring's avatar - villiarna
                            Wandering Aimlessly
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                            Posted: January 3, 2009, 9:58 pm - IP Logged

                            BuyLow - we've had this discussion many times in the blogs.  So you are not alone! 

                              BuyLow's avatar - palm tree.jpg
                              Florida
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                              Posted: January 3, 2009, 10:02 pm - IP Logged

                              BuyLow - we've had this discussion many times in the blogs.  So you are not alone! 

                              Good to know. Thanks.