2007-01-25 14:01:04 · 4 answers · asked by moodringgrl 3 in Cars & Transportation ➔ Insurance & Registration
No, not as long as it gets paid off on time.
2007-01-25 14:19:29 · answer #1 · answered by Better_than_you 3 · 1⤊ 0⤋
Well if you owe more than the car's worth, you'll have to continue to make payments until it's paid off. Legally, you don't "own" the car it's on lien-the bank/credit union/whatever has the title to the vehicle. This is why they always insist on comprehensive insurance coverage.
Obviously if you owe less, then you pay off your loan early, which helps your credit rating; plus you will get back the calculated interest for the loan's term, and now apparently, the credit insurance as well.
BTW, it's normally a bad financial practice to be owing more than a vehicle's worth; though there are times when you have no choice. Partially for the reason you mention in your question. Good luck.
2007-01-25 22:32:20 · answer #2 · answered by jim 7 · 1⤊ 0⤋
Keep making your car payments until your insurance settles the claim. If you do not do this, the lending institution (Lien Holder) CAN report you to the credit bureau(s).
Bottom line: Pay monthly installments on your car loan until the claim is settled and you will be fine.
2007-01-26 09:07:19 · answer #3 · answered by rob1963man 5 · 0⤊ 0⤋
If there is no creditor that isn't getting paid it shouldn't affect your credit rating, especially if it was totaled through no fault of yours.
2007-01-25 22:19:32 · answer #4 · answered by oklatom 7 · 1⤊ 0⤋