No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Hi everyone... I'm new here, and ANY input is greatly appreciated.
Here's the situation:
I totaled my car on January 30th. The insurance paid all but $1339.60 or so (No Gap )... I have $1200 I can give them now, but they said they would either take $800 and consider the loan "Settled for Less Than Amout Owed" (or some form of settled) or I have to pay the $1339.60 in full (claiming that there is only $1.53 in interest), obviously for a "Paid in Full" listing. They won't meet anywhere in the middle of the two numbers at all and are currently considering my account delinquent. However, as long as I pay by the end of the month, there will be no negative marks.
The question I am getting to is: How bad is it going to look on my credit if I just settle for the $800? My payment history is 100% on time (except for the potential 30 days late, which would not be in effect as long as I pay by Apr. 22). I could make myself suffer a little more for the extra $129, but as it is, I've been Direct Deposit Advancing since November to keep afloat while a garnishment runs it's course.
Thanks in Advance for your help!
Why not just make a regular monthly payment on the loan until you can pay off the balance?
Hi and welcome to the forums.
Settling for less than full amount is a major negative on your CR. Avoid it at all costs if you can.
Why can't you just continue to make monthly payments as before it was totaled?
An auto loan is collateralized. Once the collateral is removed from the equation, the lender has the right to call the loan.
That having been said I agree that it would be in the lenders best interest to allow the monthly payments to continue until the balance is PIF. If you have a good payment history with them you might consider proposing such an agreement.
Best of luck!
CB
(Edited to correct spelling)
What is in your credit report?
Robert: What do you mean what is in my credit report? With COAF? Nothing but current payment history ATM. Other than them, a few past issues which will drop off in the next couple of years.
They said that after the title is released, any remaining balance is due in full. They won't allow me payments of any kind. I even explained to them an identical situation I had a few years back where the lender allowed me to continue making payments for the remainder of the loan, with a smaller payment for the remaining balance. They have me between a rock and a hard place at the moment. I definitely want to have positive marks, but I'm having a lot of trouble as it is and if it won't be to detrimental, I'll just settle.
LOL!
I undertand the woes of your situaton, but how to address depends upon what has been formally posted to your credit report.
Has the original creditor posted a late, or a charge off?
Has any colletion posted?
No late payments what-so-ever and it's not in collections yet... As long as I pay it before the end of April, no negative payment information will be given (of course, I'll request that in writing before paying ANYTHING).
@Anonymous wrote:Robert: What do you mean what is in my credit report? With COAF? Nothing but current payment history ATM. Other than them, a few past issues which will drop off in the next couple of years.
They said that after the title is released, any remaining balance is due in full. They won't allow me payments of any kind. I even explained to them an identical situation I had a few years back where the lender allowed me to continue making payments for the remainder of the loan, with a smaller payment for the remaining balance. They have me between a rock and a hard place at the moment. I definitely want to have positive marks, but I'm having a lot of trouble as it is and if it won't be to detrimental, I'll just settle.
Have to ask. Who are They? Are you dealing with the front line CSRs or have you elevated this to management level. It just seems so idiotic that they would settle for less, and in doing so ding your credit, when they have someone wiling to pay the full amount if they will just give you a little breathing room. There is no understanding the corporate mind set sometimes.
On another tact, could you possible take out a small loan with your local bank or CU and pay that back over time? You would wind up with a PIF installment loan and another giving you more good payment history. Just an idea.
CB
Sorry CB... lol
They is Roger... my "Account Manager".
The regular CSRs weren't helpful in the first place, either. Not to mention, they spoke accented English that was difficult to understand and didn't comprehend some of what I was asking...
I would go the loan route, but I can't seem to get one anywhere. and I wouldn't wanna take out a loan if I don't have to... I'm working on paying down debt (for right now... All current accounts have 100% on time pmts, larger than minimum pmt, etc.). I don't make a LOT of money and with this loan showing as open on my credit, I can't get a new car until I figure this out.