How long does a derogatory closure of an account pertaining to an auto loan affect your credit scores?
I recently co-signed for someone, and our relationship ended. They gave me the truck back and said they no longer wanted it. I have a car payment myself, so it will be hard to have two payments. I also am trying to save money to buy a house within next year. I have thought about voluntarily surrendering the vehicle. My credit has just recently improved. If I decided to do this would it ruin my credit to the point where I wouldn’t be able to get approved for a mortgage?
I took out a loan for a van in 2008 and lost my job shortly afterwards. I only made two payments on it. The lender never came looking to take back the vehicle. This past week I received a letter from them stating that they want the van. What are my options? Can you help?
I am trying to trade-in my car; however, I am upside down on my current car loan. If I trade it, my payments will be really high. The salesperson is trying to convince me to do a voluntary repossession on my current vehicle. She said that it would not be a big hit on my credit and my new car payment will then be lower. I told her that was something that I really had to think about and research. I don’t know much about what she was talking about, and I did not want to make an impulse decision.
If I voluntarily surrender my car to the financial institution carrying the loan, will it make a difference on my credit report? Or, is it a repossession no matter how it is repossessed?
Categories: Score Advice
Why is my old creditor pulling my credit report? I had a car that I could not afford after being laid off. I ended up giving the car back and my account was charged off. I have no open accounts with them, so why are they pulling my credit report one year later?
I am considering a voluntary vehicle surrender. What ramifications can I expect, both financially and on my credit report and credit scores if I agree to surrender my vehicle to the creditor?