⚠️ The Golden Rule of Bank Shopping
When calling banks to inquire about their products, do NOT give them your Social Security Number. You are interviewing them, not the other way around. Only submit a formal application once you have verified their product meets the 5 criteria below.
The Outreach Script
Use this script when calling a local credit union or sending an email inquiry to a loan officer. It instantly positions you as an educated borrower.
My estimated FICO score is [Score], and my estimated Loan-to-Value is [LTV %].
Before I submit a formal application, I need to verify that your specific Line of Credit product meets my structural requirements. Can you answer 5 quick questions regarding the mechanics of your account?"
The 5 Mandatory Questions
Take notes directly on this sheet. A single "No" to questions 1, 2, or 3 means you must politely decline and call the next bank.
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1
Is the interest calculated on the Average Daily Balance?
Why: This is the engine of the strategy. If they calculate interest monthly or front-load it, the strategy fails.
Notes: -
2
Are there any limits on the frequency of draws or deposits?
Why: You will be moving money in and out continuously. There can be no penalties or restrictions on transaction volume.
Notes: -
3
Are there any prepayment penalties or early closure fees?
Why: Because you will be aggressively paying down debt, you cannot be penalized for killing your interest charges quickly.
Notes: -
4
Does the account provide checking capabilities (Routing/Account numbers)?
Why: To fully automate the system, you must be able to set up direct deposit straight from your employer.
Notes: -
5
Do you offer a Zero-Balance / Auto-Sweep feature?
Why: This is a bonus feature (not mandatory). It allows your checking account to automatically 'sweep' excess funds into the Line of Credit every night.
Notes: