Repossession
When a creditor takes possession of your vehicle after you default on your loan or lease. For credit rating purposes it does not matter if the repossession was voluntary or involuntary.
                    1) Deficiency Balance - A deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. This also applies to lease turn-ins with over mileage charges.

Simple Interest
A flat rate of interest that is not compounded, generally expressed as an annual rate. One day of simple interest is calculated by: loan balance x interest rate = daily amount of interest 365 (days in a year).

Stipulations (STIPS)
Documentation may be required to prove items on your initial credit application.
                    1)  Proof of Income (POI) - Income is the SINGLE BIGGEST FACTOR in determining how much or what type of vehicle you can purchase. See our car loan calculator for more details.
                                     h W2 Income : This type of income is most important to a lender because it is attachable (it can be garnished). Acceptable POI includes
                                                      8 Computerized pay stub with year to date calculations.
                                                     8 Four consecutive handwritten pay stubs and previous years W-2. Often, cancelled checks from the employer are required.
                                     h Self Employment or 1099 - This type of income must be verified with tax returns prepared by a professional tax service. Lenders require two years tax returns. It is rare for a lender to approve a person with bad credit that has been self employed for less than two years.
Lenders use a customers adjusted gross income. That is income net of all expenses. This can be found on Schedule C of a tax return or line 31 of the 1040.
                                     h Child Support - A copy of the court order and a recent check or check stub. Lenders may not count this type of income if will not last for the length of the car loan.
                                      h Social Security - Form SSA 1099 and a bank statement showing deposits.
                                      h Unreported Income - Income from cash jobs is not counted when calculating income.
                     2) Proof of Address (POR) - Acceptable forms of POR include utility bills, credit card statements or anything received through the mail which contain the following:
                                         h Customer's name.
                                         h Customer's address.
                                         h Dated within the last thirty (30) days.
                   3) Telephone Bill - Some lenders require proof of home phone service. Many lenders are now accepting cell phone service as well.
                    4) Mortgage Statement - The most recent mortgage statement is used to verify your monthly mortgage obligation. This document also serves as POR.
                    5) Lease Agreement - Used to verify your monthly obligation. Often the landlords phone number is required for verbal verification.

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