June 5, 2016
Vehicle Repossession – Everything you need to know.
A personal vehicle is a necessity for everybody and is one of among top big expenditures. Chances are, it is bought on finance. This also brings the dangers of repossession by the finance company or the creditor. After leasing or availing finance for a vehicle, the creditor has certain rights till the debt is repaid. These rights also include repossession of vehicle in case of default.
Creditor has the right to repossess or take back the vehicle without any prior notice or warning and even from your own property. The law, however, vary from state to state. According to some law, your creditor can also sell the bond to someone else, called as the assignee. This also inherits all rights from the creditor to the assignee.
Repossession can be voluntary or involuntary. Former, is when you give the car back to the lender. Later, is when they come to take it back. Some state may allow them to take it from the owner’s property without permission. However, they must do it without disturbing you or the neighbor. In some states, breaching the peace of the society could mean aggressive threating and using physical forces. This also limits them from repossessing the vehicle from your closed garage. In such actions, they are entitled to pay for your damage. This gives you the advantage to use it during the deficiency lawsuit.
Creditors are not entitled to keep any personal property found in the vehicle. They must let you know, what items were found and how you can retrieve. If you do not claim your property, eventually it will be considered abandoned and will be disposed of.
Your Credit Score:
Repossession will have a derogatory impact on you credit score. The fact that you have defaulted, this may damage the credit score. It will further be listed in the public records of the credit report. In case the lender obtains deficiency judgment, it will be added to the credit report too. They will remain in the report for up-to 7 years.
Getting Your Car Back:
Even after a vehicle repossession, you can get the car back if the lender hasn’t sold it yet. You can redeem the car by paying the balance debt including additional repossession charges. However, it is uncommon among the buyers.
Furthermore, you may be allowed to reinstate the car by paying off the arrears and other charges. You need to continue paying your regular debt amount.
When being sold in the auction, you could bid to buy it back. However, you will still have to pay the deficiency balance.
A vehicle repossession is common in America. Millions of cars are being repossessed every year. Moreover, it has extended to all sorts of goods like electronics, boats, equipments and more. As the stakes are high and it will cost you your credit score as well as reputation, repossession must be avoided at all cost.
April 17, 2016
Understanding Your Credit Report
Ever wondered why you were denied that car loan you applied for last month or the house loan that was not approved? The reason could be a ‘bad credit score’. It is not difficult to lose your credit points and a small delay in bill payment or untimely settlement of debts can have grave effects on your overall credit score. Even if you had a good credit score a few months ago, the figures will plummet before you know it. It is, therefore, highly crucial to understand the key aspects of your credit report.
Understanding your credit and what influences it is the key to having a better credit score. Once you gain complete knowledge about the subject, maintaining it will just be a cakewalk.
What is a CIR (credit information report)
While a credit report is the numeric summary of your credit history, a CIR or Credit Information Report is an account of the entire payment history of the individual. This has been calculated from the time you first received your Cibil TransUnion Score, another name for credit score.
What constitutes your CIR
Your CIR is the assortment of the Cibil TransUnion Score, and other important details of employment, bank accounts, credit cards, etc. Below are the key sections in detail.
- Cibil TransUnion Score – A credit score ranges between 300-900. A score above 700 is considered good
- Personal details – Contains complete and authentic personal information, address and telephone details
- Employment details – Income details that have been earned by you as an employee
- Account Information – Details of all the credit facilities and banking transactions related to your account such as account numbers, ownership details, date of last payment, loan amount, loan details, current balance, and so on.Every time you are applying for a loan, the respective lender or institution accesses your CIR. Understand your credit report and make sure that these elements are always up-to-date.
Know about Credit Bureaus
One important thing to know when developing an understanding of your credit report is the Credit Bureaus. Credit Bureaus are the bodies that keep a track of your entire financial history, along with the credit report to date. Three major credit bureaus are involved in the process – Equifax, TransUnion, and Experian.
FICO or the Fair Issac Corporates creates a credit score for every individual that is used by top lenders while they consider offering credits.
Summary: Understanding Your Credit Report
Each lender has its own strategy to assess that helps them decide whether the concerned candidate is suitable to receive a credit. If you identify the areas that these lenders use in order to assess your credibility, you can easily sort them and work towards their improvement. Once you get a better hold of these key aspects, you can easily create a good credit score.
March 5, 2016
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.
January 23, 2016
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.
January 18, 2016
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!
October 25, 2015
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!
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.
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.
September 23, 2015
Explaining Doc Fees in Detail
Doc Fee? When it comes to buying a new or a used car, the price tag that you see kept on the top of it is not the only amount you have to pay to own it. A host of other charges applies as soon as you agree to own that piece of automobile such as licensee fee, title fee, sales tax, and various others. Dealers often add many other kinds of charges and this increases the selling price to several hundred dollars extra to what was initially agreed on. Hence, the final out-of-the-door prices that you are going to pay can be anything. These additional charges are often referred to as “doc fee” or “documentation fees” and it is highly suggested to determine them prior to making the full payment.
What is a Doc Fee?
Although the introductory paragraph might have given you a glimpse of doc fee, here is a complete explanation of what it actually is and what are its capacities.
A doc fee, also known as documentation fee, conveyance fee, or document fee – is the additional fee charged by car dealers for processing the vehicle’s paperwork. The fee covers the cost of all the big and small documents that get evaluated in the process such as the DMV, registration, preparation fees, VIN etching, etc.
Is it legal? How can you know it is not fraudulent?
In most of the cases, the doc fee is not regulated by the dealer, but by the government. The dealers make a profit from the car that they sell to you at its selling price. Whatever money you are paying additional for the paperwork of the vehicle goes to the several departments of the government. However, if you are in a place where the state government does not regulate the fees, the dealer can hit any price on you.
Is it negotiable?
Generally, the doc fee is not negotiable. Only the selling price of the new or used car that you are going to purchase is negotiable. The doc fees are generally capped by Government and dealers are not allowed to make any changes to it. For those areas where dealers are regulating the fees, they might be negotiable.
Is it necessary to pay them?
The answer is a definite ‘yes’. The documents include the legal certificates and registration copies of the car that makes you eligible to own or drive it. You must ensure that all kinds of taxes, fees, and prices are paid before you take it out on the road. Because, if you get caught driving the vehicle with no or incomplete documents, you might have to pay a hefty fine.
Therefore, while purchasing the car, always ask the dealer for its overall price. This will include the selling price of the car, doc fees, sales tax, and other charges. Make sure with the dealer that no new fee crops up later that will modify the price. In case it does, you always have the option of shifting to some other honest dealer.
April 20, 2015
Understanding a Vehicle Purchase Contract
When reading through any type of contract, whether it’s a legally binding contract or not, it is important that you grasp the concepts that are being presented through the use of the contract. In order to properly understand a contract, there are certain terms that you will need to be familiar with in order to ensure that you understand what you are agreeing to. There are many basic terms that are used in contracts that are legally binding, and these terms are perhaps the most important part of the contract, which means that the line that one of the following terms is included in should always be given special attention. This article will cover the basic terms that are used often in contracts that you will encounter.
Acceptance – Acceptance is the agreement to any terms listed in the contract. Until acceptance has been given, any terms in the contract can be taken back.
Conditions – Conditions of a contract are the basic terms of a contract that will be agreed to. When conditions are given, the individual signing the contract will read the conditions and either accept them or deny them.
Exemption Clauses– Exemption Clauses are terms of a contract that protect the party from liability in the terms of specified outcomes that may happen. Exemption Clauses are often included in a contract in order to ensure that the individual signing the contract cannot place blame for any negative outcome on the party writing the clauses.
Express Terms – Express Terms are the terms and conditions that are specifically stated in the contract.
Jurisdiction – Jurisdiction usually states the state or country in which the legal laws will be placed on the terms of the contract.
Liability – Liability is defined as the legal obligation of a party to cover any damages or blame that happens during the period in which the contract is effective.
Subject to Contract – Usually, this term will be used by any parties who are involved in the writing and signing of a contract. This term means that the discussion that is currently being held does not concern the overall acceptance of a contract.
Void – A contract becomes void when the individual or party who has accepted the terms of the contract can no longer abide by the terms listed in the contract.
Warranty – Warranties are defined as promises that are laid out in a contract, but are not on the same level as conditions. When a warranty is given, the party creating the contract is liable for damages to the individual or item listed in the contract.
March 27, 2015
What is a Credit Report?
Like most people, you might ask yourself, “What is a Credit Report?” If you are trying to purchase a vehicle, you probably heard about a credit report at some point. At most dealerships, your credit report comes into play when making such large purchases. Since it is such a large part of your life, you should know what it is all about and what you can do to improve it. Knowing this will help you to take control of your finances.
A credit report is a report of your credit history and credit activity. It will tell people about activity related to your credit, such as things that have gone unpaid. If it is connected to your credit, it is on your credit report. This is important for lenders since they deal directly with money. They will look at a credit report to determine your trustworthiness. If your credit does not look good to them, they may not want to lend you any money. For vehicles, this means that you cannot receive any financing. With traditional lenders, there is no way around this when you have bad credit.
There is less chance of approval for vehicles, homes, and other major expenses if you have poor credit. The major lenders will not want to give you money if they feel you cannot pay it back. To change this situation, you will have to begin building your credit. Since there are three bureaus, you must look at each of them. One good idea is to go to a location that does not base your approval on your credit but still gives you access to major purchases. This will help you to get what you want, such as a vehicle, without you having to worry about your credit report. With regular payments, and if the company reports to the credit bureaus, you can also see your credit improve.
Next time you find yourself wondering, “What is a Credit Report?” just remember your credit. Anything connected to your credit history is part of your credit. The better your credit history, the better your credit report and score will be. A good credit score will help you to finance many of the larger expenses that you need.
If you do have bad credit, read this to get ideas on how to rebuild your credit.
April 24, 2014
Lucky’s is the leader in Buy Here Pay Here lending in Utah, and is one of the fastest growing car dealerships selling used cars and trucks in Utah! The reason is simple: We take great care of our customers, we help you with funding when everyone else turns you down, and our short term loans give you the greatest chance to rebuild your credit and OWN the car you buy! We hope the pages below answer any questions you might have. The quickest way to know exactly how we can help is to visit one of our awesome locations and spend 5-10 minutes and complete an app. We don’t care about your credit, and EVERYONE gets approved with a plan! We have a zero-pressure sales process because our #1 goal is to help you succeed!