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Does it still hurt your credit if your car was repossessed but you then paid off the loan in full?


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2015-07-15 20:54:39
2015-07-15 20:54:39

Yes - but before you pay it off in full you can try get the finanance company to change what it says on your credit bureau by holding the payoff money up in their face - I would get any promises in writing.After you pay it off - your credit bureau says Repoed then paid off. It could look to another lender like it was paid off by the old company selling the car and you could get no credit for paying it off at all. I bought a 2002 ford focus a couple years ago, i had no credit cause i was only 18 years old. I finally got approved through ford motor credit and about six or so months ago the car out of no where just broke. I pulled over and looked back all i seen was oil and the repair shop said it was a possible bad motor. I have had nothing but problems with the car the entire time i have had it (broken seat belt, cig lighter, ect.) it was just out of warranty so i was pretty much stuck between a rock and a hard place. I decided just to have the car towed to the dealership and tell them i didn't want the car because i didn't have the money to get it fixed and what not. I then bought another vechile from a lady my dad knew and i made little payments til i paid it off and i heard nothing about my car. A couple weeks ago ford motor credit calls and i picked up they say i owe about 3600 and i told them i didn't have that kind of money and no one i knew did either. The lady said i could make a big settlement and take 40 percent off that price to make it 2400 but that still didn't fit in my budget at all. I asked if i could save up and make the 2400 payment they said no. They said i could pay 150 towards the 3600 and when i wanted to settle pay have of what i still owe. That sounded decent. I talked to my friend who is a bit older then me and has had this similar situation happen to him. He told me he didn't pay them a dime back and no matter what my credit is gonna be screwed up for a long time so don't bother paying them back. The ford person said after my credit would be better, so i am not sure what i should really do. Would it be worth paying them or just saying forget you guys you have the car it broke whatever? And boths ways how would my credit look if i did pay or didn't pay? To anyone who replies i thank you very much and appreciate your help i have to the 15th of July to decide. HiI hope I can help you.....The same thing happen to me....I found out that the repo was hurting my credit. I waited three years before I contacted the collection. Six months after I made a settlement on the repo. (Settle for 3000.00, repo was 6100.00) In the mean while I open a secured credit card and a unsecured card. Six months later my creit score jump and it is improving....

One thing to remember is that a collection is a collection , charge off is a charge off and a repo is a repo. Paying these off does not improve your credit and in some case it can hurt because the date of last activity will refresh for every payment is made.

The best thing to do is ask for a pay for deletion. Get it in writing and send all correspondence by certified return receipt and save all green cards you get back. Always remember, that when dealying with these types of issues you need to have the following thought process - if it is not in writing , it is a lie. With out written agreement, they can say they never agreed to what ever and then it is their word against yours. With the writing, you have proof and then can have it enforced in court if needed.

Good luck to you

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Just the same as if it was your car repossessed. Legally, you hold the same liability as the primary buyer.

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Yes, it can still hurt your credit if you voluntarily return a car. The car company will still put the debt you owe on your credit report if they choose too.

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Both can hurt a lot, but your credit still can be restored after this.

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no. You will hurt your credit when you close an open line of credit.


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