Auto Loan

Your Complete Used Car Buying Guide

September 13, 2018

If you’re considering replacing your vehicle, have you considered purchasing a used one? The perception of used cars can be somewhat negative. That’s why the market-friendly term “pre-owned” is now more widely used (forgive the pun). However, shopping for a used car can be tricky because every car has a unique, and often hidden, history. The following advice should help you navigate safely through a minefield of lemons.

Look for a Car That Fits

Make a list of the features and qualities that you need from the car. For example, do you drive long miles and require good fuel efficiency? Then, make another list of what you’d like. It’s okay to go after a few bells and whistles or sleek styling, but only after you’ve determined the vehicle will be able to meet your driving demands. These lists will help you pick a few models to investigate. Lastly, do a quick online search to see if any of your chosen models have had major recalls.

History Repeats Itself

If the car you’re looking at has had problems in the past, it will probably have similar problems in the future. Ask the owner or dealer for the car’s VIN number so you can check its history. There are a number of companies that keep records of incident reports, like AutoCheck and CARFAX., Sometimes report details vary by company, so be sure that you don’t miss anything, it’s a good idea to check the VIN with more than one company.

Needless to say, if the seller won’t provide a VIN, you shouldn’t spend any more time looking at the car. No matter how sweet the car appears on the outside, you don’t want to gamble on what’s under the hood.

Do Your Own Due Diligence

Have the vehicle checked out. It’s possible that there has been a recent problem or issue that hasn’t been reported yet. Ideally, you would bring it to a mechanic you trust. If this isn’t a possibility, then bring a knowledgeable friend or a vehicle inspection checklist (easily found online) to over the car.

Finding Fair Prices

Compare the listings from the National Automobile Dealer’s Association, Edmunds, and Kelley Blue Book to get an idea of what you should be paying. Actual prices will probably vary, but you’ll have a starting point for negotiation.

If you have a smartphone, check to see if there are any used car pricing apps available. These apps collect information about what other users have recently paid for the same or similar model cars. The results can be hit-or-miss if there’s not much data available, but if there is, then you’ll be in a stronger negotiating position. You might even find some better deals.

Try Before You Buy

If everything else seems to check out, take the car for a test drive or two. You want to see how it fares in as many common traffic situations as possible. Take it up to speed on the highway to check for brake alignment or wheel defects. Drive in a city during rush hour to put the transmission through its paces. A slow drive through a neighborhood will let you experience the car’s handling.

A Word About Warranties

Many of the cars that you look at will have certification or a warranty. Don’t rely solely on these read the fine print to see what’s actually covered. And remember: even if you trust the seller or dealer, don’t skimp on your own inspection.

 

Business

Credit Unions and Small Businesses: A Perfect Partnership

August 29, 2018

Credit unions are not-for-profit, community-based, member-owned financial institutions that are uniquely positioned to help America’s more than 27 million small businesses. They return yearly profits to their members in the form of lower interest rates on loans, lower fees on accounts, and better interest on savings accounts—including business accounts and loans. They also offer smaller business loan amounts, which can be a huge advantage for entrepreneurs who are just starting out.

Beyond these dollars and cents advantages, credit unions are operated on the principle of “people helping people.” What this means for small businesses is a more personal, local approach to loan approval—often a big hurdle for the new small business. The approval process is more likely to include the credit union’s own interactions with the applicant than a big bank’s universal application process.

A credit union is also more likely to understand a communities’ need for and potential success of a small business, as they themselves have deep roots in the community. Credit unions are all about keeping local dollars in the local economy. This was never more evident than during and immediately after the Great Recession.

While banks slowed or halted their portfolio growth of small business loans during the Great Recession, credit unions were continually expanding theirs. They stepped in to offer support and services when banks would not. According to the U.S. Small Business Administration (SBA), from 2007–2015 outstanding small business loans at credit unions more than doubled, while similar bank loans shrank by 10%.

Access to capital, financial counselling and planning services, and lower-fee accounts is vital to millions of small businesses across the U.S. Credit unions understand this and are uniquely positioned to deliver the tailored finance solutions small businesses need.

Original Source: http://lmcu.frc.finresourcecenter.com/Small_Business_Services_78922.html?article_id=2639

Fraud Protection

Avoid This Dangerous Facebook Scam

August 28, 2018

Bugs, viruses and ransomware have all forced us to be diligent when it comes to our email. But what about social media? Scammers are tackling Facebook, Twitter and other channels as well. The Better Business Bureau warns that you need to have your guard up wherever, and whenever, you click these days.

One Facebook scam that’s trending involves government grant offers. Why it often works, is it appears to come from a person’s Facebook network of friends. You’ll get a Facebook message that promotes free grant money from the government. The message may also reference other friends or family you have on Facebook that have received the grant to make it seem more legitimate. It may also reference real government agencies or real public figures. No matter how it comes packaged, don’t fall for it.

The messages ask you to supply personal information and a payment for “processing fees.” Unfriend and block these users immediately. If it’s from someone you know, chances are they’ve had their Facebook account hacked. Let them know via email or call/text that their account has been compromised. You’ll also want to report the scam and scammer to Facebook.

The Better Business Bureau has 10 Steps to Avoid Scams as well as a way to file a complaint about the scammers. Also, if you think your Wayne Westland Federal Credit Union accounts have been compromised, call one of our Member Service Representatives immediately at (734) 721-5700.

Don’t forget, Wayne Westland Federal Credit Union members can get free identity theft protection.

Loans

What You Need to Know About Personal Loans

August 13, 2018

In recent years, personal loans have become one of the fastest growing loan products. They’re appealing for many reasons: they can offer low interest rates for people with good to great credit, they can be for smaller loan amounts, and they can be used to pay for a range of life’s expenses, including consolidating debt, covering an unexpected expense, or making home improvements.

To determine if a personal loan is the right option for you, you’ll need to understand the loan’s terms and consider your other options for the getting the cash or line of credit you need.

Terms of a Personal Loan

Personal loans are typically unsecured and aren’t backed by collateral that the lender can use to repay the loan if the borrower defaults on payments. If a lender offers secured personal loans, they will usually use the borrower’s savings account, CD, or share certificate as collateral.

A personal loan is also an installment loan where a fixed amount of money is paid back, with a fixed interest rate, in monthly installments over the life of the loan. This period can be anywhere from 12 to 84 months. As with other loans, selecting a longer repayment period lowers the monthly loan payment, but it also means paying more interest overall.

Loan amounts range from $1,000 to as high as $50,000. Interest rates vary from five to 36 percent. Both the loan amount and its interest rate will depend on the lender and the borrower’s determined creditworthiness.

Most lenders charge a one-time fee, called an “origination fee,” to cover their cost of processing the loan. This fee ranges from one to six percent of the loan amount. Usually this fee is included in the advertised APR of the loan. This means if someone needs a $10,000 personal loan from a lender that charges a five percent origination fee, the total loan will actually be $10,500, and this will be the number the interest rate is calculated on, not the lower $10,000 amount.

Some lenders also charge a prepayment penalty if the loan is paid off early. It’s sometimes included in the interest fee (often under the term “pre-computed interest”). If possible, it’s best to avoid taking out a loan with kind of charge as part of the loan terms.

Other Lending Options

The two other lending options often considered alongside a personal loan are credit cards or a HELOC (home equity line of credit). Which of the three options is the best will largely depend on the borrower’s credit score and if they own a home.

Credit cards offer both disadvantages and advantages over a personal loan. In general, credit cards have higher interest rates, those interest rates can increase (on future purchase made on the card or if a payment is made 60 days past due), and it can take up to 30 years to pay off the balance if only minimum payments are made each month.

However, on the flip side, if you use a credit card to pay for the expense instead of a personal loan, you could benefit from the card’s rewards, like cashback. With good credit, you could qualify for a balance transfer credit card with a 0 percent introductory APR, allowing you to make the purchase and subsequent monthly payments without interest for a whole year. The last advantage is that a credit card gives you a revolving line of credit—as you pay off the balance, more credit is freed up for you to use again, whereas a personal loan is only for a set amount.

For homeowners, they have the option of a HELOC. These are usually for larger loan amounts and they use the equity built up in the home as the collateral in the loan. Like a credit card, a HELCO is a form of revolving credit, allowing you to borrow more as you pay off the credit amount. A HEL, or home equity loan, works on similar principles, but it’s an installment loan. In both cases, if payments aren’t made on the loans, the lender has the right to foreclose on the home as payment.

Application Process

The application process for a personal loan is similar to other loans. The lender will make a hard inquiry on your credit report. They will consider your income, total debt, and credit score to determine your creditworthiness, which in turn will affect the amount they are willing to lend and at what rate.

The hard inquiry on your credit report will affect your credit score, lowering it by a few points. The good news is that consistent, on-time loan payments will earn those points back, plus a few more. While shopping for the best rates and terms on a personal loan, be sure that the lenders are only doing soft pulls as part of the pre-approval process so that your score isn’t lowered further.

Original Source: http://lmcu.frc.finresourcecenter.com/Loan__Credit_Management_78913.html?article_id=2681

Home Loans

Do You Know the Difference Between Being Pre-approved and Pre-qualified for a Home Loan?

July 18, 2018

Although the terms sound interchangeable, they represent two different stages in the home loan application process. If you begin looking at houses when you are pre-approved but not pre-qualified, you could fall for a house you can’t truly afford, or you’ll lose out to another buyer who is further along in the mortgage and buying process. Save yourself time, energy, and heartache by reading up on the two processes and taking the time to research the best deal from lenders.

Pre-qualified

Getting pre-qualified by a lender is the first step in the mortgage process. You can approach multiple lenders to learn about their mortgage options, what they recommend for your situation, and how much they will pre-qualify you for. The process can be done in person, over the phone, or on the Internet—for free, usually. All the lender will need is your overall financial standing, including your debt, income, and assets. At this time, the lender will take your word on these numbers and will not conduct an analysis—or hard inquiry—of your credit report or ability to purchase a home.

Because pre-qualification for a home loan is based only on the financial information you provide to the lender, and not based on a full credit report and pay stub evidence, your pre-qualified loan amount is not guaranteed. It is an amount you might expect to be approved for.

This is why being a pre-qualified buyer doesn’t carry the same weight as being a pre-approved buyer, who has been more thoroughly investigated, when it comes time to put an offer on a house.

Pre-approved

After pre-qualification and selecting your home loan lender, you’re ready to complete an official mortgage application (usually for a small application fee) and become pre-approved. As part of the application, your lender will conduct an extensive and thorough investigation on your financial background and current credit score. They may also require past pay-stubs or further proof of income, especially if you’re self-employed. With this information, they can give you an exact approved mortgage amount, as well as an interest rate on the loan.

With your pre-approval, you’ll receive a conditional commitment for the loan amount. This allows you to look for a home you can realistically afford. And it puts you another step closer to obtaining an actual mortgage. When you find the right house for you, you’ll fill in the appropriate details—like price of house and address—and your pre-approval will become a complete application.

Following the process of pre-qualification and then pre-approval before you begin looking at houses ensures you don’t waste time looking at houses you can’t afford.

Original Source: http://lmcu.frc.finresourcecenter.com/House__Home_78904.html?article_id=2653

Credit Unions

WWFCU is Now Open Wednesdays

July 9, 2018

 

You asked – we listened. Starting July 11th, Wayne Westland Federal Credit Union will be open Wednesdays to better meet your financial needs.

To celebrate, we’re launching a month of Wonderful Wednesdays:

  • Welcome Wednesday– July 11
    Visit us during our branch lobby hours to get some fun WWFCU freebies. The first 20 members in the door get a free t-shirt.
  • Wealthy Wednesday– July 18
    From personal money management to debt counseling, our Partner GreenPath will be in our branch to help WWFCU members for FREE from 10:00 a.m. to 2:00 p.m.
  • Getaway Wednesday– July 25
    Looking for a little summer fun? Stop by to enter a raffle to win a pair of Cedar Point tickets. We’ll be giving away two pairs to members.
  • Wishful Wednesday– August 1
    Help WWFCU raise donations for the Community Social Services of Wayne County, and the credit union is matching donations.

Join us for a month of Wonderful Wednesdays that will be full of prizes, surprises and giving back to the community we’re proud to have served for over 60 years. 

#Wednesdays4U

Financial Wellness

Your Credit Score Dropped After You Paid off a Loan. What Happened?

June 26, 2018

Your credit score goes up when you show that you’re financially trustworthy. One day you pay off a loan and notice that your score drops. Shouldn’t your credit score have jumped up, instead? To understand what’s happening, take a look at how credit scores are calculated:

Credit Reports and Scores

The three credit reporting agencies, Equifax, Experian, and TransUnion, all collect and report information about your credit history. When a lender considers your trustworthiness, they order a report from each agency. In addition, they order a credit score. A credit score is a number that summarizes all the information in your report to expedite the approval process.

Fair Issac Corporation (FICO) is the go-to score calculator for 90 percent of lenders. (VantageScore is also used, but it’s much less common.) FICO provides a number of different models and scoring methods that are each used by lenders in different sectors. The most commonly used method is FICO Score 8.

Components of a FICO Score

There are five components to a FICO score:

  • Payment History
  • Amounts Owed
  • New Credit
  • Length of Credit History
  • Credit Mix

Each of these components weighs different sub-factors. To answer our initial question about how a paid off loan can make your credit score drop, we need to look in the Amounts Owed and Credit Mix categories.

Credit Mix analyzes how well you employ the two “kinds” of credit available to consumers: revolving and installment. Revolving credit refers to credit cards, where you borrow and repay frequently. Installment credit refers to larger loans that you pay back over time, like auto loans. If you only have one or the other, your Credit Mix score drops. Having “open” installment credit, like a loan you are still paying off, will give you more points here than a loan completely repaid.

Amounts Owed is where it gets tricky. Part of this component is often referred to as “utilization,” which is the ratio of how much of your available credit you’re using. For installment credit, it’s calculated as what you currently owe on installment loans, divided by the amount you borrowed. For example, if you took out a loan for $5,000 and still owe $4,000, your ratio is 4/5 and you won’t get many points. However, if you only owe $500, your score will go up. The kicker: “utilization” only counts when you’re “utilizing.” If the loan is paid off and the account is closed, you won’t receive any points here.

Still Seems Odd, Huh?

Even with that explanation, it’s still counterintuitive that a repaid loan isn’t worth as many points as a loan that’s almost paid off. However, if you’re paying off your credit cards and you just paid off a loan, your credit is probably in the 700s or high 600s, which is good! Think of it like this: which car would you trust more? One that ran well a week ago, or one that’s running well today? The car that ran a week ago, you assume is still good, but the car that drives well today you know is great. That’s how the score looks at your payment history: if you’re currently making payments on loans and credit cards, you’re a safe bet with a higher score.

Do You Need to Do Anything to Raise Your Score?

Before you rush out to take on a new loan so you can “be the car that’s running today,” consider that there are other types of FICO scores. In mortgage lending, FICO Scores 2, 5, and 4 are used instead of FICO Score 8. A lender may also look at your VantageScore, which is calculated similarly. Don’t pay interest on a loan you don’t need just to max out your score—credit isn’t a video game.

If you’re still left with questions, now is a great time to dig into your free credit reports from federally authorized annualcreditreport.com!

Original Source: http://lmcu.frc.finresourcecenter.com/Loan__Credit_Management_78913.html?article_id=2517

Credit Unions

Get More Money in Your Pocket

June 11, 2018

More money in your pocket, thanks to WWFCU and Love My Credit Union® Rewards. 

Saving on the products and services you need and use every day is easy with Love My Credit Union Rewards. As a WWFCU member, you can get discounts and rewards that include:

  • A $100 cash reward for each new line you activate, up to three lines. Plus, get a $50 cash reward every year for as long as you’re a Sprint customer.*
  • Up to $15 off TurboTax® federal products!
  • An exclusive smoke communicator and a $100 gift cardwith a new ADT® monitored home security system. You must call 844-703-0123 to receive this special offer through the Love My Credit Union Rewards Program.
  • Trusted protection at true savings with the TruStage® Auto & Home Insurance Program.
  • Cash back at over 1,500 online retailers with Love to Shop.

Sign up now and join the credit union members who have saved nearly $2 billion in discounts.
Visit wwfcu.org or LoveMyCreditUnion.org today!

 

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Home Loans

Sweat Equity: Investing in Your Home

May 17, 2018

In terms of real estate, “sweat equity” is understood as value-enhancing improvements made by homeowners. These improvements might be made to increase the immediate value of the home for re-sale, or to increase the usability, enjoyability, and value of the home to the owners as they live there.

Investing sweat equity into a home is a great option for anyone who can’t afford a more updated, expensive home but has the time and know-how, or willingness to learn, to make value-added improvements.

Does this mean you need to take out a large loan to upgrade your kitchen to match the sprawling houses of the rich and famous? Not at all! Simple, lower-cost but high-effort improvements offer the highest return on investment. In fact, investing in the wrong types of renovations might even devalue your home to prospective buyers. So, before you grab a hammer or paint brush and max out your credit card at the home improvement store, here’s how and where you’re most likely to add value to your home.

Projects that add the most value:

  • Updating kitchen and bathrooms (painting cupboards, resurfacing counter tops, installing stainless steel appliances)
  • Replacing or power washing exterior siding
  • Updating interior paint
  • Rejuvenating landscaping
  • Updating/Installing trim and crown molding
  • Refinishing/Replacing flooring (to higher-quality materials)
  • Installing/Updating light fixtures and ceiling fans

Less-profitable and possibly value-damaging projects have one of three flaws: they’re expensive, they focus on a space not used every day, or they reflect too much of the owners’ personal taste (think unusual or extravagant fixtures, finishes, paint colors, hobby spaces, etc.).

Projects not guaranteed to add value:

  • Converting part or all of the garage into a family room or hobby space
  • Turning a spare bedroom into a home office
  • Screening in an outdoor room
  • Conducting a deluxe upgrade in anything but an upscale home

In addition to adding value to a home, sweat equity can empower homeowners and make them more knowledgeable about their house and how best to maintain its value in the long-term.

Original Source: http://lmcu.frc.finresourcecenter.com/House__Home_78904.html?article_id=2581

Credit Unions

Apple Pay Now Here for WWFCU Visa

May 15, 2018

 

Wayne Westland Federal Credit Union now offers its members two ways to use Apple Pay.

We announced a few weeks ago that we had Apple Pay for our MasterCard Debit Card. As of today, you can now use Apple Pay with your WWFCU Visa Credit Card as well!

Here are the perks of Apple Pay:

To see if a retailer accepts Apple Pay, just look for these symbols: 
We’ll need to verify your account during the wallet set up process.
Click here to see how to add your WWFCU MasterCard Debit Card to your Apple Pay Wallet.

Feel free to contact a WWFCU Member Service Representative at (734) 721-5700
or stop by our branch for assistance setting up Apple Pay.
Home Loans

Buying a Home or Refinancing Soon? Read This First

May 2, 2018

The housing marketing has been a bit of a roller coaster ride over the past few years. While the ride has seemed to level off as of late, many homeowners or potential homeowners are waiting to see what happens.

We’ve got some good news for you – 2018 is a great time to do either: refinance or buy a home. Mortgage rates are on the cusp of rising, so you won’t want to wait too long to lock in your low rate at Wayne Westland Federal Credit Union. Also, Realtor.com predicts that the home inventory is increasing, so there will be more homes to choose from if you’re in the market. Finally, keep in mind that credit unions have lower loan rates, on average, than a typical bank.

Lobby Days

Whether refinancing or a new home is in your future, chances are you’ve got some questions. That’s why we’ve teamed with the home loan experts at Mortgage Center for Lobby Days. Stop by the Wayne Westland Federal Credit Union branch for Lobby Days on Friday, May 18 between 1:00 and 4:00 p.m.to speak to Mortgage Center representative Sandra Qasguargis. She’ll be there to answer your mortgage questions and help find the right mortgage solution for you.

If you have any mortgage questions before then (or after!), please call a WWFCU Member Service Representative at (734) 721-5700.

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