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What could happen to your credit if you default on an auto loan?
Wiki User
∙ 12y ago
It depends on what you mean by default. Many auto lenders call your payment "in default" after 30 days. So we'll call that "default". If you go more than that and they end up reposessing your car, we'll call that reposession.
The severity of both depends on what other credit you have on your bureau. For example, a 60 year old man with 12 houses paid as agreed in their life, 22 cars paid off, 40 credit cards paid off, 8 active tradelines and a score of 800 is barely going to be touched by a single 30 day late payment. Their 800 score will maybe be hurt by a few points which will bounce back up in a couple months. Likewise, a person with no credit score that had a bankruptcy and foreclosure and a repo after the bankruptcy who then has been carefully working their way up to a 550 score for the last 10 months with this car as their only tradeline could have their score completely wiped out for several months.
Reposession is another thing entirely. Anyone will be hurt considerably more by a reposession, but it is not unrecoverable. A lot depends on the borrower's overall credit profile like before. The 1 reposession may or may not hurt the score dramatically. It WILL affect your ability to go out and buy another car though. Most likely, even if your score remains in the higher numbers, you will not have trouble obtaining credit at most places - except for buying a car. If you had a reposession 3 months ago, they will require a sizable down payment for conventional financing and you will not qualify for the best terms and rate incentives available to others with even lower scores but no reposession.
Once they take your car, it is not over. At that point, it continues to report as late on the bureau until the car is sold at auction. If your car was reposessed in March and you were 3 months behind at the time, and they don;t sell until September, you will be a full 9 months behind on your bureau which is bad.Also, once it sells, if they do not sell for enough to pay off the balance, you will be hit with a deficiency balance. This wil be money you still owe them. They will obtain a judgment and then, if necessary, garnish your wages to pay it.
Hope this helps!Kevin FreelsEvansville, IN
Wiki User
∙ 12y ago
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Can you default on an auto loan if there is a cosigner and you are the primary?
Well, you CAN default but the co-signer would then be completely responsible for paying the loan that you defaulted on. The co-signers credit will be impacted by your default and all subsequent collections.
Can your dad cosign for auto loan?
Yes, if he's willing and his credit will support it. But don't let Dad down . It's a one-time thing if you default on the payments.
If you have bad credit and get an auto loan with a person that has good credit would your APR significantly go down?
ANSWER The APR would NOT go down because the co-signer is just a safety net just in case you default on the payment. You might have to obtain credit repair services.
When cosigning for someone does the bank notify you on the borrowers credit affairs?
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Where can one find the best rate on an auto loan?
There are a lot of places online one could get auto loans at a good rate. To name a few, one could try Car Direct, My Auto Loan, Up 2 Drive, Auto Credit Express and Capital Car Loans.
Can you default on an auto loan if there is a cosigner and you are the primary?
Well, you CAN default but the co-signer would then be completely responsible for paying the loan that you defaulted on. The co-signers credit will be impacted by your default and all subsequent collections.
What happens if you were a cosigner on an auto loan but now your credit is terrible and you are in a credit consolidation program?
As far as the auto loan you cosigned for, nothing will happen as long as the person who actually borrowed the money makes the payments on time.
Will an auto loan that has multiple borrowers appear on each of the borrowers credit reports?
Yes. If there are multiple borrowers responsible for the loan, regardless of how they are part of the loan (either co-signer or a joint borrower), the status of the auto loan will appear on their respective credit reports. However, if the auto loan is guaranteed by another person other than the borrower, the guarantor will NOT have the auto loan appear on their credit report UNLESS the loan goes into default.
Where could someone with bad credit apply for an auto loan?
Even if one has bad credit, one should first apply for an auto loan at the bank, credit union or financial institution where one does business. Car dealerships would be another source to apply for an auto loan even with bad credit.
Can your dad cosign for auto loan?
Yes, if he's willing and his credit will support it. But don't let Dad down . It's a one-time thing if you default on the payments.
Your Credit and Auto Loans?
Your credit score will have an affect on your ability to obtain auto loans at a decent price. Lenders are playing a game involving risk and reward. The more likely they feel you are to default on a loan, the more they will need to charge you in order to compensate for this possibility. If you have a history of bad credit decisions, your auto loans will have a higher interest rate. While this may be the case, the rates offered are not universal across all lenders. Some institutions are more favorable to people with bad credit, others to people with good credit.
Which is the default storage class in a function?
auto
If you have bad credit and get an auto loan with a person that has good credit would your APR significantly go down?
ANSWER The APR would NOT go down because the co-signer is just a safety net just in case you default on the payment. You might have to obtain credit repair services.
What is auto report in the computer?
Like the name says it, it 'Auto Report' the error that could happen in windows, for any program
What companies offer auto credit to those with a bad credit rating?
There are a few companies which offer auto credit to those with a bad credit rating. A common one in the United States is called Auto Credit Express Loans.
Does an auto loan rewrite hurt your credit?
I think yes....the auto loan rewrite can hurt your credit
What are the fees you have to pay when buying a car from a dealership?
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