How much would a repo. hurt ones credit. How many points would ones credit score drop?

Answer 1

There is no right answer to your question without knowing the exact specifics. Do you want to keep the unit? If you do call the finance company and try to make arrangements with them, the person that said they don't want it back is wrong, they ALWAYS want them back there is more money in it for them, let me explain to you why. If you have a good payment history they MIGHT make payment arrangements with you, if not they will simply want the unit back.

Lets say that you have been making payments for 4 years on this unit and you have another 4,000.00 to go to pay it off, they already have lets say 14,000 of your money. If you pay it off they will get 4,000.00 that's 18,000 total, if they repo it and run it through the auction, which is exactly what they will do, the unit may go for 7,000.00 They will have 500.00 into repo fees so what would you rather have? The 14.000.00 plus 4,000.00 or would you rather have the 7,000.00 minus the 500.00 repo fee and minus the 250.00 auction fee? Why do you think there are so many repo's? I have no less than 300 come across my desk a week and that is a LOW end figure As of 6:00 this morning my time I have 624 run across my desk in the past 7 days. Some companies want the units back so bad to get them into the NEXT auction they will offer me an extra 5 to 600 dollars to split with my driver to get it picked up quicker.

If it looks like it coming time to get rid of it, call them and tell them to came and get it, a volunteer repo looks a lot better on a credit report than an involuntary one. At least with a volunteer you stand a chance to get another one as people turn units in for a lot of reasons, they get them repo'd for only 1 reason.

Answer 2

A repo will drop you into the lowest category. So how much depends on where you are now. The only thing worse than a repo is bankruptcy. The only lenders who will lend to repos are the high risk, high rate lenders.

Answer 3

Not sure the exact points you'll lose on your credit score. However, the fact you have a repo on your credit report isn't good. Make sure the company reports the correct information on your credit report. If it's incorrect, dispute it. SOMETIMES, you can get the item removed, SOMETIMES.

AND I agree with the answer given above.

Answer 4

I couldn't say how much it will hurt it, but it definitely will. If you can't make the payments, contact the bank or lendor immediately. Tell them that you are having trouble with the payments, but want to work with them. They may waive the penalties, allow you to skip a payment, or refinance the loan. The last thing they want to do is reposess the car, house, etc. That is often very expensive for them to do, and they're not in the business to throw away money. If you have to, sell the car or house, pay off the loan, and find something cheaper to buy or rent. It will do much less damage to your credit than having a reposession on your credit history.

Answer 5

A lot. If you already have had it happen, you can just get a free credit report. If it hasn't, you might think about voluntarily returning the car to where you purchased it. Your credit will still be affected, but it won't be like your trying to get out of paying.

You will still have to probably pay something depending on how long you much time you have left to pay on the car, but it's far better than having them involuntarily tow the car away in my opinion.