Repo on credit report?

Question

my friend and I are having an argument because her car got repo'd about a month ago for not paying. She is in a much better poistion to pay now but i am tryin to tell her it dosn't matter how much money you make no bank is gonna give her anoth 20,000 loan

Answer 1

Having worked in the credit industry, I can tell you that the repo WILL remain on her credit for many years. It will only MATTER to her credit for three years after the date she SETTLED the debt. Now, she can opt to pay the amount IN FULL - or she can cut a deal with the folks she owes (often for less than half the actual amount due), which will show as SETTLED FOR LESS THAN on her report.
Either way will have the same effect on her credit and score, the account gets closed as paid and time starts ticking from that date.
She will need at least six months from closed status to be considered again, at a higher rate.
The important thing to take away from this, is that once an account is sent into collection status (such as a repo), you cannot get it back - it simply goes into a settled status and closes - no matter how much you pay them to get that to happen.
Best advice is to make an offer, haggle out a deal you can afford, start at 50% of actual balance if debt if fresh - 30% if debt is more than a year old. NEVER SEND THE MONEY until you get the agreement IN WRITING from the company that the amount you agreed to pay will settle and close this debt. Then, save the original letter stating this fact, and a copy of all payments made (whether it is one or ten) which satisfied the debt according to the agreement you made for less than full.
Paying more will not improve your credit faster, so haggle as much as you can and just get it closed.
On the same note, a VOLUNTARY REPO actually looks better than an INVOLUNTARY - creditors know you were on top of your situation and tried to work it out before giving up your vehicle.

Answer 2

She may be able to get another loan, but probably not with the same creditor that the vehicle loan was with or with good interest terms.

She needs to read her states repo statutes, RISA and MVISA, and also the UCC concerning repo's, UCC § 9.506

Some states have very firm cure statutes where a person must be given the chance to redeem the vehicle, for either the past due payments or the full amount (it depends on the state)
But all states, along with the UCC, have strict statutes in how the repo is done. All of the required notices before and after the sale "must" be adhered to or the repo would legally be considered an illegal repo and the deficiency would legally be considered uncollectible.

Answer 3

Some lenders don't report to credit bureaus for 60-90 days. If repo just happend, your friend might want to check her credit. Bad info might not be there yet.

Answer 4

My daughter had a repo years ago and has tried to fix her credit but no one will even talk to her about even a used car loan because of it.

Answer 5

She won't get another loan at a decent rate for a while if this only happened last month.

She should consider paying cash for something used or see if she can get her old car back and just catch up on the payments.

Answer 6

Repo On Credit

Answer 7

Why doesn't my repo show on my credit report, it is confusing me and info would be much appreciated..