Car Dealership Ruined My Credit!

[Anonymous]

I was slowly rebuilding my credit and got up to around 660-670 and bought a new car. The dealership waited 53 days (!) to pay off my trade in through Capital One. Capital One obviously reported it as derogatory and my score dropped by 100 points! Eventually they paid off the original payoff amount which still left a balance of $120 (thanks to interest and fees). My credit went up by 35 points once that payoff check went through and Cap. One reported it, but that's still 60-70 points lower than it was. My scorewatch has the account change listed as before: balance $8230, status: not more than two payments past due. The after is listed as: balance $108, status: pays account as agreed. So, if 'pays account as agreed', why did my score only go back up by 35? Is 'pays account as agreed' negative? What can I do here? Thanks for anyone's help!

[tryingtogetitrightnow]

it does not show any 30 or 60 days late currently on your report for the cap one auto from all that?

[Anonymous]

I'm not sure. The score update was just an alert from scorewatch, not a full report.

[Anonymous]

I've heard that I could have the dealership write a letter to the three agencies explaining that it was their fault the payment was late and that could erase anything negative on the report. Is that possible?

[marty56]

I dont think the dealership sending a leter to the 3 CRAs will do anything.  CRAs cant remove anything unless the creditor authorizes it.  I would think the dealership should send the letter to Cap 1. 

[guiness56]

The same thing happened to me.  Two months after the car was no longer in my possession it started showing as late on my credit reports.  I disputed it with the CRAs saying I never missed a payment and the car had been traded in 2 months before.  All three CRs now show no lates, paid in full, never late.

[Anonymous]

Wow. I never thought about these things. My car loans on trade in were paid the same day I sold or traded in the cars. But I can see how this can cause problems. You will need to contact Cap1 showing that the car was sold and see if they will correct lates for you. If not request that they call the car dealer. If you have a late and the car dealer is at fault, it should not be too difficult to have corrected. Careful if you dispute, could wipe out the trade line with TransUnion and Equifax. I will follow up on all auto loans now after hearing about this. I never thought once about it in the past.