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Co-Signing a Loan – Should you do it if someone asks?

Everything You Need to Know about Co-signing a Loan

Co-signing a loan may be a requirement by the lender when giving loan. This is the act agreeing to pay the debt if the borrower fails. Individuals with good credit score are often asked by their friend or a family member to co-sign. Although, you are willing to help; you must also be aware of its multifarious aspects. This article will focus on both the faces of co- signing the loan and help you make an informed decision.

What a co-signer is liable of:

When cosign a loan, he or she is pledged to pay the debt in-case the borrower defaults. Moreover, the cosigner is liable to pay the extra amount including late fees and collection money. The creditor has the right to collect the debt from the cosigner without even approaching the borrower (depending on the law of the state). Plus, they can sue or even seize salary.

So, make sure you can afford the amount and are willing to accept the responsibility.

Why would someone consider co-signing a loan?

You might want to co-sign a loan for your son and buy him his first car. You might also want to cosign someone’s education loan! The fact that, credit rejection is common; especially for people with low credit score; you can help them by cosigning a loan. This will help increase their credit score and credit history, as well as get them the transportation or education they need.

Things to Consider:

  • Make sure that you can afford the debt amount
  • Defaulting may get you sued or lose credit rating
  • It may keep you from getting other loans
  • Before cosigning, ask your creditor to quote the effective amount you will owe
  • You could negotiate and limit your obligations to just the principal and not include the additional charges
  • You must take the copies of all essential papers after cosigning
  • Know your co-signer rights

Risks of Co-signing a Loan:

Co-signing a loan comes with a lot of risk, like increasing the DTI (debt-to-income) ratio. As a cosigner is an integral part of the loan; he/she must address the loan closing documents. The loan is reflected in the credit report and the monthly payment goes to the DTI ratio. Moreover, as the amount you owe is 30 percentage of the FICO score, hence lowers the credit score. More, is the debt amount, lower will be the credit score. Keep the DTI ratio below 36 percentage.

By co-signing, you are accepting the responsibility and are tied to it until the balance is paid off. There is no escaping once done. However, in certain cases like with student loan, you can avail release from being cosigner.

The bottom line is, if the needs of the borrower outweighs you personal preference, you should choose to cosign the agreement. However, it is advisable to judge you friends trustworthiness wisely. It might not be noble, but this may save you later.

What is a credit bureau? Experian, TransUnion, Equifax

What is a credit bureau? There are 3:  Experian, TransUnion, & Equifax

When you opt to buy something on credit or take a loan, the lenders don’t just decide to give you the facility right away. They try to collect information on your credit behavior, both past and present, track record, and various other data to ensure that you have the potential to fulfill the liabilities you obligate yourself with. This is where the Credit Bureau comes into the picture.

Ok, so what is a credit Bureau?

A credit bureau is a company that collects and maintains credit information of individuals and supplies it to the interested organizations and bodies such as lenders, creditors, etc. As a consumer, you can also have your own credit report from the bureau. The credit information is basically a summary of your credit behavior and includes the following details:

  • How much of credit you have
  • How much of the credit is left
  • How much credit are you using
  • How often do you make your payments

Credit information also contains rental repayment reports if you own a property. Other details mentionable in a credit report are liens, judgments, and other details that expresses your current financial position.

There are 3 major national credit bureaus in the United States:

  • Experian – This global information service group operates in almost 40 countries and employs a total of 17k people. The agency was founded in 1996, the headquarter of which is in Dublin, Republic of Ireland.
  • Equifax – Another consumer credit reporting agency and one among the three largest credit bureaus, Equifax records and maintains information of over 400 million credit holders in the world. Based in Atlanta, Georgia, the company employees 7000 plus employees and operates in 14 countries. Equifiax is also one of the oldest credit report gathering agency that has its operations ongoing since 1899.
  • TransUnion – The third largest credit bureau in the United States, TransUnion is an American credit information management agency. The company has information of approximately 500 million customers worldwide and over 45,000 business houses. It works closely with Callcredit, a UK based credit reference agency.

Based on the information on your credit report provided by any of the three aforementioned credit bureaus, the lender assesses whether they can offer you the credit or not. Whether your credit scores pose a risk and put you in a bad standing or has a high score that easily help you in obtaining the loan. This will also help them in deciding what interest rates they can offer you.

Summary:  What is a credit bureau?

There are agencies that can help you in getting out of a bad credit report. They will help in reestablishing your reputation as a credit holder and will solve all your credit issues. Search on the Internet to find such providers and take their help to get back on your feet.

Credit Repair Services – How Do They Work?

Credit Repair Services – How Do They Work?

Do you look at your credit report and think about nothing but credit repair services? Have you had one or more financial misfortunes over the past several years and now have a less than ideal credit score? If yes, then it’s high time to get your credit repair process started. Credit scores have been one of the biggest victims of the financial crisis and the recession. Anyone with poor credit scores will definitely know what a low credit score can cost you.

Credit repair services can improve your credit enough to lower the rate of interest, which can result in saving you thousands of dollars on a loan. When making an essential purchase, such as buying a car, it’s vital to make sure your credit rating is as its best in order to get the best rate and terms possible. Bad credit can land you up in problems and have a considerable negative impact on interest rates or loan approval.

How credit repair services work?

The credit card repair services have been around for a couple decades with better known rules surrounding credit repair and know how to handle those rules to either raise your credit score or give you your money back. The legitimate credit repair agencies will state what quickly repairable issues to look for, how to approach your credit issues and then will submit the appropriate challenge, dispute, or intervention letters to credit bureaus on your behalf, so that your credit rating can get upgraded. They will identify the mistakes, correct the appropriate information, get rid of negative reporting and monitor the creditors to ensure that your credit report is as accurate as possible and corrected accordingly.

Necessity of credit repair services:

  • Better car insurance policies: The policies that most car insurance company offer are usually based on the clients’ credit reports. For example, you will end up with a reasonably priced car insurance policy if your report suggests that you are late with paying other accounts. Thus, credit repair services can clean up your credit rating and help you get considerable savings over the duration of your policy.
  • Better car loan or mortgage facilities: A low credit score can put a negative impact on getting different car loans. You may not get the desired loan amount or land up paying greater interest on your loans for the lifetime. A bad credit score can lower your credit limit, thus making the loan even more pricey for you. But a report with good credit score will increase your chances to get your own desired vehicle.

A higher credit score can help you with: lower interest rates on your credit card, get approved for low interest loans and lower insurance rates on your car. So, it’s important to keep your credit score in good condition. The higher your credit score is, the lower your interest rates are. There are a handful of benefits that come along with a credit score repair. So, open that door, hold out your hand and grab hold of those opportunities with a credit repair.

How to Improve Your Credit Rating – 5 Easy Steps

How to Improve Your Credit Rating – Follow Just 5 Easy Steps

Credit scores are like report cards for grown-ups. This is a three-digit grade which signifies a person’s creditworthiness towards banks, insurance companies, landlords, lenders and even to some car loaners. These are mostly used by loan companies to help them determine whether or not you are a good risk and if you are likely to repay any loan taken out. Whether you are buying a car, renting an apartment or taking a loan, you need to make sure that your credit score is at its best. One has to build a great credit history to pass for a good credit. Unfortunately, there is no magic trick that can pump up your score by a certain number of points. Building a good credit takes time and good habits. However, there are few things that can do raise the score of your credit. These are:

Step 1: Check your credit report

Check your credit report to see exactly which place needs improvement. Do your debt utilizations too high or did you missed payments? Tackle your dues first, request a free copy of your credit report and check the errors. Check the reports for errors and fraudulent accounts as well. If something is incorrect, dispute with credit bureau. This could helps increase your credit report a bump higher.

Step 2: Pay Off Debt

Reducing the overall debt is an effective way to jack up your credit score. Reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. Stop use of your credit cards, ask for funds from friends or relatives and clear your debts. Check your recent credit card statement to make a list of your debt and interest rated on that. Secondly, you must give prime focus to credit utilization, as it will help you measure the amount of debt. Create a plan, evaluate your expenses and reduce your debt to improve your credit utilization portion.

Step 3: Fix your collection accounts

Collection stays for a long time on the credit bureau, and even you forgot about their first position! This is the very aspect that can have a harsh effect on your credit score. So, check it, fix it and get rid as soon as possible. Get in touch with credit bureau and the party to resolve the issues and have a fair report. This will eventually increase your credit score and prove you to be liable for any loan.

Step 4: Build good credit by following guideline

Moneylenders or bankers check the credit score to find out your financial faithfulness Therefore, maintain good credit habit to improve your score and prove credible.

  • Make your payments on time.
  • Keep your old account open.
  • Lower your balance on credit card.
  • Set-up payment reminders.
  • Use your card regularly
  • Annually check your credit reports.
  • Avoid applying for new credit cards

Step 5: Get a secured credit card

Get a secured credit card to quickly build a payment history. These cards are backed by cash depositing that is parallel to the limit of credit. You could easily get the approval, as money already their in your account. Double-check to ensure that the card is truly a credit card. Although, unsecured card carries more positive weight than a secured one. You could easily upgrade the secured card into an unsecured one after few months. This would sincerely give a boost to your credit score.

Summary:  How to improve your credit rating

Follow the steps listed above, and build a credit score which you were missing. These 5 tips will give this impression to financial institution, and therefore increase your chance of borrowing. But, you have to keep patience, as it cannot be achieved overnight.

Who buys used cars from Lucky’s?

Who buys used cars from Lucky’s?

Lucky’s Auto Credit helps all kinds of people buy cars. On top of the customers who have good credit, we understand that good people can get into tough situations due to medical bills, bankruptcy, and divorce, resulting in credit problems which can make it difficult to get approved for financing of any kind.

You are Not your Credit Rating

Your credit situation does not define who you are. At Lucky’s Auto Credit, you are treated as an individual, not just a credit rating. Our sales professionals will discuss with you the vehicles and loan terms that work for you. Remember, no matter who you are or what your credit situation, we will treat you with dignity and respect. Lucky’s Auto Credit is an equal opportunity lender.

It Takes Time to Rebuild your Credit

One thing to keep in mind as you begin to rebuild your credit is that it will take some time and effort on your part. It won’t happen overnight, but if you are serious and work at it, you can turn it around. At Lucky’s Auto Credit, we can help.

Meet our Customers

Who buys used cars? View our testimonials page to see our extensive list of happy customers! We work very hard to go the extra mile for our awesome customers, and we’re looking to establish a long term relationship to be your car dealer of choice. We’ve had customers so happy they got approved that they buy 5,6, and 7 cars from us!

Financing Bad Credit – What does Lucky’s Auto Credit Do?

Financing Bad Credit

Financing Bad Credit is our specialty. Our programs are designed to help people with credit problems such as bankruptcy, no credit or bad credit get reliable transportation and a car loan, at payment and terms they can afford. Most car dealerships cannot lend to you if you have these types of issues, or they require a very high (50% or more) down payment on the car. We have some of the lowest down payments available and one of the easiest loan approval processes. Just bring in your Utah driver’s license, pay stubs, and proof of address (power or gas bill) to one of our car dealerships and a friendly, no-pressure sales person will help set up a plan for you.

We Can Help

We’ve helped thousands in Utah get the SUV, car, minivan or truck they want. We can help you get a car today! Apply Now to set up an appointment with one of our friendly sales representatives. Our #1 goal is to set you up in a plan and car you can afford with your income and budget to ensure you’re successful in the purchase and payoff of your car.

Summary:  Financing Bad Credit

We know the pains of qualifying for a loan when you have credit issues.  We’re not here to judge you, We’ll  treat you with the respect and candor you deserve.  The program is very simple and only takes a few minutes to see what plan you qualify for.  If you can’t afford one of our cars due to payments higher than you can afford, we’ll tell you what it will take to be able to afford it!

 

Low Down Payments

Low Down Payments

If you’re looking for a used car dealer in Utah that offers low down payments, you’ve found one of the best.  We specialize in low down payments and the average hovers around $77-$300 down.  A large amount of our customers get approved for $77 down.

What are the required down payments to buy a used car at Lucky’s Auto Credit?

Our locations start at a $77 low down payment. This depends on the vehicle you pick as well as a few other factors. For example, we want to make sure you can afford the car and the payments. The lower the down payment, the higher the monthly payment, so we help you by showing you if you make enough money to afford your payments. Our goal is to see our customers succeed!

Common questions we get when people come in with $77 down is that they expect to qualify for every car on the lot with that down payment. While we frequently do down payments on expensive cars for $77 down, it’s not always the case and it really depends on your income, stability, and job history.

Still Confused?

As an example, if you qualify for a $6,999 price car at $77 low down payment, but you decide you really want the 4-door 4×4 truck that costs $16,999.  If your budget can’t support the higher payment, then you’ll need to put more money down until the payment is affordable.  Some people do this with stored up savings, tax refunds, borrowed money from friends and family, or they save up over time. We never want to put a customer into a car they can’t afford.  That doesn’t help the customer, and it definitely doesn’t help us.

Ok, I get it.  Where do I start?

To know for sure, you just need to come in to one of the Utah car dealerships and do a 5 minute application. We’ll have you approved and let you know which cars you qualify for and explain our low down payments.

How to Take Care of a Car – Top 5 Things

How to Take Care of a Car: Top 5 Things

Owning a car could be a symbol of your style and status. But a routine maintenance procedure is quite essential for maximizing the reliability, safety and protecting your investment as well. Your car won’t magically take care of itself. For it, you should start reading the recommendations and maintenance tips by the automakers in the magazines or Internet. Next, you would be need of a good repair shop where you get essential tips from the certified technicians.

With a few tips and alertness, you could keep your car free from the troubles. Listed below are some of the important car maintenance basics that would help your car to run smoothly and stay ready for every road battle.

  • Check out all the fluid levels: Nothing could affect the engine’s performance faster than the negligence in oil-level checks. So, see if the oil levels, including engine, brake, power steering, and transmission is up to the mark.
  • Take care of the cooling and heating systems: Flush the cooling system of your car and change it once in a year. Keeping the cooling system in a good shape help prevents the corrosion and harmful deposits inside it. Both heating and cooling performance is crucial for interior comfort and safety reasons like defrosting. It should be taken care of properly to function well.
  • Check the battery and exhaust system: Battery is the key component of a car’s electrical system. Regular maintenance of battery could avoid unwanted troubles and saves a lot. Make sure that all the connections are tight, corrosion-free. Exhaust leaks could be dangerous that is why it must get corrected before anything happen. If you heard any kind of unusual noise, then there might some damage, leaks, or broken parts. So, inspect it carefully before you start a long trip.
  • Check out the brake and suspension: Brake is one of the most important parts of a vehicle so as the suspension. So, have an annual check and keep an eye on the brake linings, drums, and rotors at each oil change. Also make an intensive check for the shock absorbers, struts and chassis parts including tie rod ends, ball joints, and other major components. It would extend the life of your car’s tires.
  • Check the tires and lights: Check the pressure on a regular basis, as the uneven wear would cost you for a wheel alignment. You should also check for bulges and bald spots. Do make sure that the lights are working properly. Because it is important for your safety while driving at the night time. Checking other electrical components like horns, wipers, etc. to ensure they are functioning accordingly.

The above mentioned basic car care tips could assure safety and a better performance. To obtain the best result, you could hire the service of a reliable source, so that you go well on your way.

why do I need to change my oil

Why do I need to Change my Oil?

Why do I need to Change my Oil?

We often get asked, “why do I need to change my oil?”  The changing of a car’s oil is probably one of the most essential things a car owner need to do to ensure a high quality engine and extend life of the car, so as to get saved from the hindrance of repair and breakdowns. As part of daily maintenance, oil changes are vital to keep your vehicle running smoothly and efficiently. It is a simple process that can put a huge impact in your engine’s performance.

Oil is the lifeblood of any vehicle. Engine oil keeps the internal parts of your car’s engine lubricated and cool. It keeps the moving parts from colliding each other causing wear and damage. The oil also keep many components of the engine working efficiently which in turn reduces the accumulation of carbon and varnish from getting collected on the engine. Without frequent oil changes, dirt and sludge gets build up in the engine, and not removing them can mean less fuel efficiency and engine processing. This leads to serious damage.  If things go bad enough, a chance of future engine failure is imminent.

That’s why it’s always advised to go for frequent oil changes to save your car from engine failure. Oil change also offers other myriad of benefits. Some of them are:

  • Better engine performance: Frequent oil change keep your engine parts clean and lubricated. This in turn enhances your engine performance and allows user to have a smoother and quieter ride.
  • Cleaner engine: Old oil contains certain amount of junk and debris in it which comes with a possibility of damaging parts of your car’s engine. Oil change will protect your engine’s vital components from harm, and ensure that your engine is
    lubricated with clean and quality motor oil. The higher the quality of oil, the cleaner the engine will be.
  • Extended engine life: Regular oil change reduces engine wear that results in a longer lasting car engine. Keeping the oil clean and fresh is the only way to lubricate and protect your engine from harmful debris. This boosts your engine’s performance and guards it against the most common causes for engine wear and breakdown. So, frequent oil changes are a great investment for your ride’s entire life.
  • Better gas mileage: Who would say no to better gas mileage? Increased energy lubrication results in less energy friction that will enable an engine to run easily and smoothly with better gas mileage. So, get an oil change at a frequent interval and your wallet will thank you!
  • Lower vehicle emission: Older cars or trucks many a times result in dirty oil that causes an excess of toxic engine emissions. So, an oil change will replace those dirty oil with fresh, clean engine oil that can absorb toxic particles and by-product emissions well.There are such benefits that come with frequent oil changes. It improves your vehicle’s engine and horsepower performance. This in turn, allows your car to maximize the horsepower it puts on the road by ensuring that all cylinders are operating to their full capacity.

Summary:  Why do I need to change my oil?

If you care about your car, you definitely want to change your oil as often as suggested.  Cars can be expensive.  An oil change is a very cheap way to keep them running well.

Lucky’s Auto Credit includes oil changes with any car purchased to ensure your purchased vehicle runs as long as possible.  Contact Lucky’s Utah Auto Shop to schedule an appointment today!

How to Buy a Car

How to Buy a Car: Here’s What you Need to Know

Now that you are moving out of your comfort zone and actually willing to buy a car on your own; you will be needing a lot of help. Today, people make decisions hastily, unknown and unprepared about the many nuisances of making a deal. Eventually, most end-up buying a car they didn’t want and possibly at a higher price than they should have.

However, to make things easier, this article will focus on streamlining the complete car buying process in-to easy steps and help you land on a position to make an informed decision.

Choose the Car You Need!

You will find hundreds of make and design; each better than the other! But, you need to choose the model beforehand. Pick a car that fits your needs, lifestyle and budget. Narrow down you list to under five. Also consider the number of seats, size, performance, comfort, head-room and leg-room. Do a thorough research on the Internet, read blogs, review. You could go for a side-by-side comparison.

Know What You can Afford:

Soon after you choose your dream car, its affordability may start to get blur. Its many financing options will make things confusing or even worse. A wise man should figure this intricacies way before going for the purchase. He/She must be honest with the budget, needs and choose only the ones within the price range. Take into account you current car; its exchange value or sell value; calculate your down-payment; what you can afford to pay every month as well as for what duration. Don’t become greedy or impulsive; keep an open mind!

Find Financing:

First, check your credit rating! If have a good rating, you are more likely to find a number of beneficial financing deals; like, getting a zero-percent interest finances. On the other hand, if you have a bad credit rate, you may wish to consider trying a buy here pay here car dealership which offers special financing options for those who can’t get financing elsewhere. So, make up your mind and choose the financing that fits your situation best.

Warranty:

You might be lured into buying an extended warranty; however, be wise because the type of contract vary greatly based on the company.

Insurance for Car:

Car insurance is essential, sometimes mandatory according to some laws in the state. For sports cars, turbocharged, supercharged and four-wheel drive vehicles, the insurance rate is higher, typically because of larger engines. Check rates with your insurance before making your purchase and if possible negotiate the price; you will save a lot.

These top tips will definitely get things moving. You should also talk to your friends, family members and neighbors to get real insights on local dealers. It will help a lot if you talk to someone who is experienced.

In Summary, how to buy a car is as much research as anything else.  Do your homework and check out all your options.

Used Cars & Trucks in Utah: Makes and Models

Resources:

Used Cars & Trucks in Utah
Can I get a Car Loan with Bad Credit?
View All Used Cars
Utah's Auto Shop
Referral Program

Acura
Audi
Buick
Cadillac
Chevrolet
Chrysler
Dodge
Ford
GMC
Honda
Hyundai
Infiniti
Jeep
Kia
Land Rover
Lexus
Lincoln
Mazda
Mercury
Nissan
Pontiac
Saab
Saturn
Subaru
Suzuki
Toyota
Volkswagen


* 77¢ down offer approval is based on job and residence stability, & ability to afford payments. While supplies last.

No information contained herein can be relied upon as legal, tax or any other type of professional advice. It is for general informational purposes only and does not apply to your particular set of circumstances.
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