Turn in the car? 2 1/2 years of perfect auto payments not being reported.

[Anonymous]

We had to file bankruptcy about a year and a half ago. I had purchased a vehicle several months beforehand and advised our attorney that we wanted to keep it.

I continued making payments on time, never missing one. I had counted on those payments to help us rebuild after filing. Now I find that the finance company never reported the payments and they won't because of the bankruptcy, even with a letter from the attorney saying that we wanted to preserve that account.

As we work to rebuild our credit, I'm torn over what to do. I feel wrong about this, but would it be better to hand the vehicle back in and get a different loan with a different vehicle so we can at least get that credit established? I'd happily keep this one if they'd just report it. 

Thank you.

-Pxlchk

[Noctilum]

I would absolutely keep it.  A year after bankruptcy you are going to get stuck with those buy here, pay here, high interest dealers.  At least you probably have a decent rate on your current car and the fact you wanted to keep it tells me you are comfortable with the payment.  IMO, ride that thing into the ground and find some other way to rebuild.

[StartingOver10]

Agree 100% with the prior poster.

Installment loans are only 10% of your credit score. Most of your rebuilding will come through credit card/revolving accounts.

Keep good records of your installment payments being made on time and you can overcome the non-reporting issue by refinacing with a CU two years from discharge. That will solve all your problems as far as installment loan reporting.

[Anonymous]

Fantastic advice! Thank you both. It's uncharted territory for us. 

[Anonymous]

I totally agree with the advice above.  You'll build well with credit cards and probably about the time your ready for a new car on your terms you will have strong scores that will get you the best APR.

[Ups77]

I would keep your current vehicle. If you apply for credit trying to purchase a new one it's going to hurt you further. Rates will be through the roof.