Using Banks and Bank Accounts/Getting loans
A friend of mine was telling me about how he was unable to get a personal loan once, and in my mind he should have gotten it. He said he had $15,000 in that bank, he owns a house, has better than good credit, no debt, and was only asking for $5,000. Apparently because his income is only about $15,000/yr they didn't consider it a safe bet despite that he already had 3 times what he was asking for in saving. I guess the person asked why he didn't just use that money. Should that really matter? I mean I think everyone deserves to keep some money in savings for a rainy day? Why shouldn't he have been able to get a loan?
Banks use a debt to income ratio model (Monthly Debt/Monthly Income) for loans and lines of credit, they want to make sure a person does not overextend themselves and get in trouble.
Even though your friend has $15,000 in the bank, it is not guaranteed that it will stay. Banks use a guarantee on income roll from a job as ability to repay the loan.
Hope that helps