I'm trying to repair my credit score, and my by the time I am done paying for my truck it will be worthless. I just need to know on average what a repossession will do to my credit score? I'm already late on payments, and will have to continue to make the payments for a average of another 5 years, and by the time its paid for, it will SERIOUSLY be useless. Help if you can!
2007-07-08 09:28:30 · 7 answers · asked by carissa1_99 2 in Business & Finance ➔ Credit
Dont let the lates build up. Dont let them reposses it, surrender it. It shows different on your credit the hit will be the same. But it will stop the repossesion process. You dont want to have 10 lates on your truck then a repossession. All those lates count against you. Plus you will have to pay the court fees ect for a repossession. Also know they will sell the truck, if there is any difficiency, you owe it. Say you give it back you owe 30,000 and they sell it at auction for 15,000. You owe the other 15,000 it will be a judgement. Its called a deficiency judgement and that will also go on your credit.
Just surrender it if you are not worried about the judgement. It will change your credit score but it depends on how much other credit you have built. Somebody with an 80 credit score that has 4 mortgage and 30 years of past credit. It might change it 20 points.
If this is your first major purchase, no home loan. It will change it drastically. But its easier for that person to build it back up.
Hope this helps, good luck.
2007-07-08 09:43:38 · answer #1 · answered by financing_loans 6 · 0⤊ 1⤋
If you trying to repair you credit score, you're not doing the best job of helping the cause. Being late on payments does serious damage to your score. If you end up having it repo'd then it'll follow you for at least 7 years. This will also prevent you from getting other loans and needs down the road.
Even though your card would be useless within five years. It's still a shorter time frame then seven years on which you'll have an extremely hard time on getting any thing done which is based on credit.
try to catch up and make additional payments, best case scenario, try and pay the car off early and run the car into the ground.
2007-07-08 17:42:27 · answer #2 · answered by Lifting Underground 2 · 0⤊ 0⤋
Repossession is a bad idea.
If you let it go to repossession, they will sell it for whatever they can get at auction and sue you for the difference. This would be a lot worse to your credit score than the few late payments you have.
I suggest getting a second job so you can get the payments back up to date and then plan on keeping and driving it until the wheels fall off.
If you truly cannot afford the payments, you may want to see what you could sell it for. Get as much as you can for it and then get a loan for the difference. A small loan for the difference would be better than letting it get repossessed.
Good luck to you.
2007-07-08 17:38:37 · answer #3 · answered by mister_galager 5 · 0⤊ 0⤋
Sorry to be flip, but you just realized vehicles depreciate? Also I don't think it would be worthless, but almost every vehicle loan is upside down, unless the buyer puts 20%+ down, does not put many miles on the car, or makes extra payments.
Having a repo will ruin your credit, and you will still be responsible for a substantial diffiancy balance.
You need to find a way to make extra payments and try to get the loan paid off early. I know easier said than done, but go to credit couseling office have them go through your budget.
2007-07-08 19:01:00 · answer #4 · answered by Gatsby216 7 · 0⤊ 0⤋
big Time, you must go see a banker do not let your truck get reopossessed! 1) your score will drop by 50pts or more AND you may get sued for remaineder balance. lets say you owe 10k, car will get sold to the lowest bidder lets say 6k, you still owe 4k, then add about 4k for repo fees, court costs ect. you could end up paying what you owe and have nothing buy bad credt....... you did the right thing and put a post on here buy now hit this in the butt now.
good luck
2007-07-08 20:54:14 · answer #5 · answered by Anonymous · 0⤊ 0⤋
The hit on your credit score varies, depending on your total credit history.
Is the market value already lower than what you owe the lender (If its a truck, maybe I shouldnt even be asking this question)? Im thinking, instead of repo, you can try to sell it. Get it off your name.
2007-07-08 16:53:36 · answer #6 · answered by Fahad S 3 · 0⤊ 0⤋
Must have bought a Chevy to be worthless! About 100 to 150 pt drop--------been there , done that-------not good idea. unless there is absolutely no other way to do so.
2007-07-08 16:36:24 · answer #7 · answered by nickle 5 · 1⤊ 2⤋