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Garnishments on Your Credit Report – 4 Ways to Resolve Them

Garnishments on Your Credit Report – 4 Ways to Resolve Them

Ignoring your contractual debt obligations can have a very serious impact on your financial status.  Garnishment, a creditor’s last-chance attempt at debt collection, hits debt holders where it hurts; their ability to fill the gas tank, pay the bills, and feed their families. It is something that you should try to avoid at all costs.

When facing debt that can’t really be paid, the best plan of action is to act early and speak to your creditors to see if you can negotiate a payment plan or achieve some sort of payment arrangement. If debt goes unpaid and overlooked, the court may interfere by issuing a judgment requiring your employer to “garnish” or withhold a bit of your wages or financial balances to pay back the debt.

The road to wage garnishment can be long and winding. Here are four things you can do to deal with wage garnishment on your credit report:

  • Stay in touch with your creditor: Wage garnishment is typically a final effort by creditors to squeeze some cash out of you when they cannot seem to get you to pay your debt with a certain time frame. If you ignore them or refuse to talk to them, you put yourself in a weaker position. Try your level best to stay in contact with the creditor and work on building up a reasonable payment plan. Showing the creditor you have every motive of paying back your debt may urge them to back off for now.  A creditor is much more willing to work directly with a consumer to avoid court and attorney’s costs associated with obtaining a judgement and ultimately a wage garnishment.
  • File an appeal: If the wage garnishment gets approved by the court, you have all the rights to file a “claim of exemption” which shows that you cannot avail this type of pay cut as your paycheck covers all your basic living costs, including insurance, grocery bill and housing. You will need to show to the court that you would basically get behind on your consistent bills if your wages were garnished. If the court gets convinced that the garnishment will worsen your financial condition even more, they may prevent the creditor from garnishing your wages or ask the creditor to reduce the amount that is to be garnished.
  • Pay the judgment amount: If you do have some funds available to pay off the full debt within ten days of the judgment, the court can put a stop on the garnishment process altogether. Before that, make sure you are aware of the judgment amount and pay it off in full as soon as you can.

Summary: Resolving Garnishments on Your Credit Report

Being aggressive when creditors are coming after you can help prevent this drastic step altogether. Try your best to work out a repayment deal with your creditors so that they stay confident that you will pay the debt within a particular time frame. This is the best way to keep creditors off your back and stop garnishments on your credit report.

What is a FICO Score?

What is a FICO Score?

People who would like to get into any type of financial transaction need to know what is a FICO Score? It is one of the best and most popular ways in the USA for assessing someone’s credit or money viability. A type of credit score which help prepare an appropriate credit report that lenders generally use to assess the applicant’s credit risk and make a decision whether to give a loan.

It was invented by Fair Isaac. FICO represents the Fair Isaac Corporation, and the word, “score”, represents the assessment. It computes the scores to assess a person’s monetary status, transactions and the financial move. Actually, it’s your credit score that makes you eligible or not-eligible for a credit loan. The score determines your repaying ability to a loan. It is based on five factors, that are your paying ability, the amount you have to repay, the credits you had, the new credit you have, and the types of credits you are using. If you score high, you could get your loan approved at lower interest rate.

Past and current credit affairs like your accounts open date, types of accounts, last use and default computed as well. The score comes in a three digit number that ranging between 300 and 850 and it decides your chances. Obtaining a high score that is above 600 reflects your ability in controlling your finances in a great manner and your creditworthiness. Your probability of being granted a credit loan by the banks and creditors increases to a great extent.

On the other hand, if you score less than 600 it shows that you are not in control of your finances. The banks or creditors might also say no to pass your loan or approve it at a much higher interest rate or just give you pretty less amount.

FICO does not see the amount you make, where do you work, how long you have been working or worked, your age, sex, color, race, religion, or the kind of job you are doing. What it sees is your percentage scored. Listed below are the percentages for each part:

  • For payment history, it is marked 35 percent.
  • For amount owed, it is marked 30 percent.
  • For the length of credit history, it is marked 15 percent.
  • For new credit, it is marked 10 percent.
  • For types of credit, it is marked 10 percent.Your FICO score is not the end of possibilities to obtain a decent interest rate. You could increase your scores by improving some of the important factors like reducing the amount of your outstanding debts, your payment history for a start. A number of things are there that could assist you in achieving the final score. You just need to go through in detail and find out the areas that need a boost to re-build your current credit scenario.

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.

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!

 

How to Build Good Car Credit

How to Build Good Car Credit?

While most of us have a credit card with us, it is usually not easy to get hold of the first credit card. There are lots of things, which are checked by the credit card company, before they issue an unsecured credit card. Also, if you wish to purchase anything in life, you need to also have a good credit. Having a good credit history can make you eligible for all kinds of loans, like housing loans, car loans, and other kinds of loans. So, how does one build a good credit history? How to build good car credit? These are some of the questions, for which you will find answers over here.

Want to Know How to Build Good Car Credit?

There are some ways by which you can build a good car credit. And, that is by not paying the full money in cash. Well, if you are planning to purchase a car, you can use the option of dealer financing for purchasing the vehicle. Once you take the dealer financing, you can prepay the complete loan, after just one monthly instalment. Are you wondering how this will help you? Well, you will be paying minimal interest, and you would be establishing a good credit history, by making the payment on time. In fact, some people end up getting better deals on their cars, because the dealers give a lower price when they help you in financing the loans. So, you would actually be making a good profit.

Yes, this is one of the best ways for improving the car credit. And, with the help of this credit history, you would be able to get a credit card issues on your name too. But, once you have the credit card, you should use it in a responsible manner. Sometimes, the credit score is calculated on the basis of the time period, for which the accounts are open. So, it is always useful to have the credit card account kept open. This will help you in achieving the high credit score. And, of course, you should pay the bills on time, and in full. But, remember that you should not go overboard with all these credit cards.

Hope you got your answer for “how to build good car credit”. You can use these options, and improve the car credit, which will be useful for you in purchasing new cars, and also in other things.

How to Budget – 5 Easy Steps

How to Budget – 5 Easy Steps

Due to the ever increasing lifestyles that we lead, it is sometimes important to become a little frugal, and follow budgets. Following a budget can help in purchasing some dream object, which has been on our priority list. Well, we give below budgeting 5 easy steps, which can make you a frugal spender. It is very important to have a control on how much we spend, as compared to how much we earn. Some percentage of the total income should be saved so that you get closer to your dream:

Budgeting – 5 Easy Steps

  1. Evaluate the income: What is the income that you are earning? Create an excel file with all the sources of income, and enter the interest rates, rental income, and any other income.
  2. Calculate the expenses: Well, this is a difficult part. While we can track our income sources, expenses come in many forms. So, jot down all the fixed expenses that you incur every month. These would include car loan payments, rent, insurance policies, school fees, and other things. After that, include the variable expenses, like gas, food, entertainment, etc. Also, include other expenses, like car maintenance, gifts, taxes, and other things. Once you have the hang of your total expense, deduct it from the total income. This will give an alert to you about whether you are on an overspending spree, or a thrifty spender. It will also give you an idea about where you can cut down the expenses.
  3. Avoid wasteful expenditure: When you get a hang of your expenses, you can cut down wherever you can. It would be good to analyse and categorize the expenses into necessities and luxuries. Of course, you cannot avoid the necessities, but can definitely cut down on the luxuries.
  4. Have a good savings in your account: The job scene is quite unpredictable these days. So, one should save enough money to tide through the difficult times. If you have a good amount of money in your savings account, you would be able to get through the difficult period, even when you are switching jobs.
  5. Stick to your budget: This is easier said than done. But, when one looks at the big picture and the future rewards, this becomes an easier task.

Following these budgeting 5 easy steps will ensure that you lead a comfortable life, and are prepared to face all future calamities, as well.

Prepaid Credit Cards

Prepaid Credit Cards (Secured Credit Cards):

There are basically two kinds of credit cards available for the people, who have a bad credit. These are the prepaid cards and the secured credit cards. So, if you have a bad credit history, and require a credit card for yourself, you can check out both the cards.

Some Information on Prepaid and Secured Credit Cards

Both these cards are separate and are not to be mixed. While, both these cards require money to be deposited prior to using them, they are quite different from each other in all the other aspects. For getting the secured credit card, one will need to make security deposits against credit limits, so that the card can be approved. This security deposit is kept in the savings account, and will be used when there is a default on payment on the credit card. The purchases that are made with these cards will go against the revolving credit limit. When the credit card balance is paid off, the available credit increases again. The security deposit is there on these cards because of the bad credit history of the borrower.

Prepaid cards work in a different way. These are actually not credit cards, as there is not credit limit. The deposit made on the card goes straight into the account, and when the card is swiped for purchases, the balance is deducted directly. So, when the deposit is spent, one would have to redeposit the money, so that he can start spending again.

The fees on these two cards vary. The fees on the secured card is quite similar to that of credit card, with application and annual fees, late fees, and finance charges. Some of these fees can actually be avoided if the card is used responsibly. The fees on the prepaid cards depend upon the card that you choose. It could have monthly maintenance fees, activation fees, etc. Other than that, fees might have to be paid for reloading the money, and withdrawing the money from ATM.

So, the choice of the card is totally dependent on you. If you wish to improve the credit score, you should go for the secured credit card. These cards can be converted into unsecured cards after the completion of 12 or 18 monthly payments. And, for people, who wish to avoid the banks, can choose to go for the prepaid cards. These are also good for the students and teenagers, who get monthly allowance from the parents.

These cards can be a great way to make your payments and, if they report to the credit bureaus, build your good car credit.

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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