What Happens When Your Car Lease is Up?

Your car lease is almost up. It's time to weigh your options.

* Leasing another car is one--but maybe not your best--option. If you have a good credit history with your lease company, you'll likely get a letter (about two weeks before your lease is up) that preapproves you for a new lease. Before you agree to financing through the dealership, at the very least, ask for a conditional agreement subject to approval and review by your credit union. In fact, that's sound advice for any lease or dealer financing arrangement.

* You also may choose to buy your current leased vehicle outright for the amount stated in your lease agreement (residual value) plus any additional charges and fees. Again, first check with LifeWay Credit Union about ways to finance any purchase.

* Another option is to turn in your leased car and walk away. Maybe you found that leasing just isn't for you. Before your lease ends, learn all you can about the end-of-lease process. Talk to a return lease specialist where you plan to return the car. When you return the car, be prepared to sign several end-of-lease papers to terminate your responsibility, and make sure you receive a copy of the federal odometer receipt and a report of the vehicle's condition.

If you're not sure which option to choose, call us at 615-251-2089. We can review your lease agreement and help you weigh your options.

Register to Vote

Make your voice heard and get out to vote! The right to vote is one of the most important privileges of being a U.S. citizen. But in the 2004 election, only 58% of the voting age population (18 and older) voted, according to the U.S. Census Bureau; and only 65% of the eligible population was registered to vote.

To register, contact your local election official for a voter registration form. Or, register to vote online with Credit Union National Association Voter Registration at https://electionimpact.votenet.com/cuna.

Net Worth: Are You On Target?

Is your net worth on target for your age and household income level? In the book "The Millionaire Next Door," authors Stanley and Danko suggest a simple formula:

Divide current age by 10

Multiply that by annual pretax income, excluding inheritances.

Example: If you're 40 with an annual income of $50,000, your net worth should be at least $200,000 (40 divided by 10 = 4 and $50,000 x 4 = $200,000).

Although this is a suggested minimum, the more you exceed this figure, the better. Remember: other factors affect net worth--such as family size and health--so use this figure as a starting point.

America's Credit Unions: Secure, Strong

Amid turmoil, America's Credit Union serve as safe harbors for consumer savings. Click here to learn more.

Virtual Branch Tip

Did you know there’s a great way to provide yourself with more online security when you use Virtual Branch?

When you’re initially set up on Virtual Branch, your login ID is your Social Security number. You have the option to change your login ID once you’re inside of Virtual Branch. Just click on Personal Information under Personal Options on the left-hand side of the page, then click on Change Login ID on the upper-right-hand side of the page. Once your there, simply enter your new login ID, verify it, and you’re all set!

Questions? Call us at 615-251-2089 and we’ll be glad to help.

Watch for ATM Skimming Devices

Look for irregular devices on ATMs you use. Crooks may attach an overlay swipe device, which gleans your name, account number, expiration date, and security features off the magnetic stripe on the back of your card. Review statements on a regular basis--more often online--and report transactions you didn't make.

And if you're not set up to use Statement Express, click here to get started.

Ways to Boost Your Credit Score

Every time you apply for a credit card, mortgage, car loan, or insurance, your application is judged in part by your credit score. Lenders use your credit score to determine whether to grant credit, and at what cost. The higher the score, the more likely you are perceived to repay the credit. Consumers with scores less than 600 usually are seen as higher risk and may pay a higher interest rate or are denied credit.

Fortunately, you can take steps to boost your credit score. These tips can maximize your score and influence your credit-worthiness.

1. Be punctual. Late or missed payments, foreclosures, and bankruptcies have the greatest negative effect on your credit score.

2. Check your credit report regularly. Don't let inaccurate information ruin your credit score. Consumers are entitled to one free credit report per year from each of the three major credit bureaus (Equifax, Experian, TransUnion), which you can get online at annualcreditreport.com. Even though the credit report is free, getting your credit score will cost extra. You can obtain your credit score at myFICO.com, or from the individual bureau's websites, experian.com, equifax.com and transunion.com.

3. Keep debt in check. Try to keep your account balances below 50% of your credit limit. For instance, if your credit card has a limit of $2,000, keep the balance less than $1,000.

4. When shopping for a loan, submit your applications within a limited time. If done in a short period of time, multiple inquiries on a credit report will count as one inquiry to a potential lender looking at your report. Excess inquiries strung out over a longer period, however, could negatively affect your credit.

5. Keep accounts open. Time is one of the most significant factors that can improve your credit score. Closing old accounts—especially ones with a good payment history—shortens your credit history and lowers your score. Lenders take into account the average age of your accounts, so an older account can help balance newer credit.

6. Keep a healthy mix of credit. This includes things like a mortgage, a credit card or two, a car loan, and perhaps a retail card. LifeWay Credit Union can help you acquire the mix you need.

The Free Credit Report That's Really Free

Go to annualcreditreport.com, which was established after the Fair and Accurate Credit Transactions Act of 2003 gave consumers the right to obtain - once a year
- a free credit report from each of the big three credit reporting agencies: Equifax, Experian, and TransUnion. Or, you can call toll-free 877-322-8228.