my credit is not good, but i am paying on a reposed car to the bank that financed me, is it better to not pay them, or to pay them, how will it affect my credit after i do finish paying them off? i was told to stop paying them, because it don't change anything(credit) after i finish paying the balance off. any ideas?
2007-07-18 09:11:27 · 4 answers · asked by saraann24 5 in Business & Finance ➔ Credit
Get it in writing from them that upon fully paying it off, they will remove it from your credit, not marked satisfied, but removed. Tell them no letter no more payments
2007-07-18 09:15:57 · answer #1 · answered by Pengy 7 · 2⤊ 0⤋
The answer is yes and no. Yes it will help your credit to pay it off but only slightly. A repossession is one of the most severe forms of bad credit. You should contact the bank and ask them what you would need to do to have them REMOVE IT COMPLETELY from your credit file. Get the deal in writing and then pay it. Do not take someone's verbal committment. In my opinion, a paid or unpaid repossession are equally as bad.
2007-07-18 16:35:09 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It depends on what the lender does. If the lender does not report the payment, then it is a waste of time.
However, most such lenders would classify not paying in this case as "Repo-Charge Off" which means they took the repo and a loss.
However if you pay them afterwards, they can list it as "Repo-Paid" which means that you in fact did pay it after the repo. This is still a "DEROG" or bad credit, but not nearly as bad as a "Repo-Charge Off" In fact, when potential lenders look at that, they will be much more confident of you as a borrower, because you took care of your obligations even when most people would not have.
So, if you can get a note on your credit reports, it is a good thing.
2007-07-18 16:20:06 · answer #3 · answered by rlloydevans 4 · 1⤊ 0⤋
pay off your debt
2007-07-18 16:16:20 · answer #4 · answered by shorty21 5 · 0⤊ 1⤋