It's 640 and I owe $12000
2007-06-03 08:36:56 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
the two people said it right, DO NOT LET THIS HAPPEN. 640 is a OK score in with you may be able to refinance to bring you payment down. now lets say you let is get repossessed not only your credit will be trashed you could be faced with a lawsuit... here is why. they take your car sell it for 8k, then they will add about 2k for repo fees, then 1k for attorney fees that's about 7k they will come after you! in that they could garnish your pay. My brother was faces with that harsh reality a year ago.
2007-06-03 13:45:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Auto finance is what I do for a living and believe me you do not want this to happen.
As far as your score is concerned, it depends on what makes up your score to begin with. If this car loan is one of the only lines of credit you have, it could result in a drop of well over 100-points.
With a 640 score, you should be able to refinance the vehicle and lower your payments, assuming that you have paid on it for at least 12-months and have a good pay history.
If you let the vehicle repo, the lender will sell it at auction for a lot less then it's worth and then come after you for the balance plus all towing, storage, auction, repossession and lawyers fees. This will amount to several thousand dollars.
They will turn it over to a collections and then get a judgment against you. This will allow them to attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like vehicles, boats, land and homes.
All of this will show on your credit report for 7-years and make it extremely hard to get any other loans without paying huge down payments, fees and sky high interest rates.
Avoid this at all cost.
2007-06-04 04:11:30 · answer #2 · answered by ? 7 · 0⤊ 0⤋
Unfortunately, teh credit bureaus are not talking. Their scoring systems are proprietary and we have no way of knowing exactly how many points each negative mark is worth.
Let's just say a repossession will have a HUGELY negative impact on your score. I'd venture to say that it will knock you into the high 500s. Even a voluntary repossession (when you turn in car on your own accord) looks bad. Do what you can to curb the repo. As family for help or see if you can refi.
Good luck!
2007-06-04 03:15:43 · answer #3 · answered by YSIC 7 · 0⤊ 0⤋
call the lender, immediately and see if you can work out a payment plan, a refinance, anything so that it is not repossessed because your credit will take a nose dive, and the repossession will remain on there for 7 years. What they do is sell it at an auction and you are listed as owing the remainder, even if you pay on the remaining monies owed, it will show up as a derogatory item on your report
2007-06-03 09:14:13 · answer #4 · answered by Pengy 7 · 1⤊ 0⤋
A lot. It shows up in two pays: a lower score + just having it on your report. Try working out a deal to get the $12,000 lowered so that your creditors see you paying it off in regular payments.
2007-06-03 08:41:00 · answer #5 · answered by Venita Peyton 6 · 0⤊ 0⤋