I surrendered my car the other day because I could not make the payments any more. My credit score before that was very good about 720. How long will it take to build my credit back up after this is done.?
2007-05-20 15:37:12 · 7 answers · asked by Andy G 2 in Business & Finance ➔ Credit
I agree with the rest, it's going to hurt.
They will sell the car for a fraction of what you owe. Then they will demand that you pay the deficiency plus fees and interest. Which in many cases adds up to almost what a person owed to begin with.
Your credit on that will suffer for the next 7 years.
If you don't pay, they may and probably will try to sue.
If they sue and win, you will have court costs on top of what you owe, plus post judgment interest until you pay.
That could stay on your reports for quite a long time.
Hopefully you didn't sign anything that would waive your rights when you surrendered it.
I agree you should go back and try to work something out.
2007-05-20 20:03:24 · answer #1 · answered by echo 7 · 0⤊ 0⤋
If you do a voluntary repossession, it is the same as if the credit provider picks your car up!! It can remain on your credit as long as 7 years. And you will find it very hard to get any credit anywhere else. If you have a credit rating of 720 then you could surely secure help somewhere. By doing this it will lower your overall credit score. You will regret it immensely if you relinquish your vehicle!! Believe me I did, but I was going through a divorce and unemployed. So I didn't have much choice. Go to the company that you financed your car and see if they will refinance, sometimes they will give you a payment "Holiday" and you will still have to pay the amount of interest for that payment but it will be lower than the regular payment amount. Or you may be able to find someone else to refinance with. But if you are already having trouble making the payment or you happen to be late it will probably at a much higher interest rate. DON'T do it if you can help it!!!
2007-05-20 23:47:54 · answer #2 · answered by Dixie 1 · 0⤊ 0⤋
Auto finance is what I do for a living and I can tell you that this is going to haunt you for the next 7-years.
No only will the repossession show on your credit, but the lender will send the car to the auction and sell it for a lot less then it's worth and come after you for the remaining balance plus all fees from the repossession and the auction.
If you do not pay they can and most likely will sue you and get a judgment. At that point they can attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like boats, cars, land and homes.
They should contact you and tell you when and where the auction is going to take place. You might consider going and bidding on the vehicle yourself. At least this way you could cut your losses.
As far as answering your question, you can look for at least a 100-point drop in score as soon as the repossession shows up on your credit.
2007-05-21 10:02:01 · answer #3 · answered by ? 7 · 0⤊ 0⤋
Big mistake. Most Banks only get 3 bids before it is sold to the highest bider.. See if you could get the car back from the bank and try to sell it yourself. You'll get a lot more. If you made payments, maybe you can refi for a longer term..
2007-05-21 00:23:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
after 7 years because u took the car back and this is bad on your credit report..
2007-05-21 12:16:14 · answer #5 · answered by shorty21 5 · 0⤊ 0⤋
To hell in a hand baskett!
they dont give a **** about you !!!
Work youre *** off to acumulate credit and at the very smallist thing they take more than they should away !!!
its all a scam to keep you in debt.
From now on only pay cash if you cant then you dont need it that bad now do you?
2007-05-20 23:03:24 · answer #6 · answered by Turkish 3 · 0⤊ 0⤋
it depends on. if you pay it off after they resale it it will be ok it will show that it was repoed and paid off if you do not pay it off afterword it will look worse trust me i have had that happen. I got a new car a few monthes later and a house a year later
2007-05-20 22:46:31 · answer #7 · answered by stoncolder 1 · 0⤊ 0⤋