Advice needed on settlement offer

[lpayton]

I had a vehicle repo'd 3 years ago. I owe them $3500. They made me a settlement offer of $3000, pay $100 a month and after 3 months they will report to bureaus I am paying, but it will still show the repo. After I pay it in full, they will remove it completely. Will re-opening it by making monthly payments hurt my score?

[kjm79]

How is it reporting now? 

And the offer is good, if you can get them to put it in writing for you. 

[lpayton]

They have put it in writing, and right now it shows as "repossession" with a $3500 balance.  So, what they promised, is that If I begin making payments of a minimum of $100/month, after the 3rd month they will begin reporting it to the bureaus that I am making payments...but it will still show as a repo.  Once I get it paid off in full, they will completely delete it.  Oh, and they knocked off $500...bringing the amount to $3000 owed. 

I am just wondering, if I am making payments, and they are reporting the payments..but still showing it as a repo..will it help me at all? If the repo is still showing I would think it wouldn't make a difference? A repo is a repo is a repo..right?

( The goal would be to pay it off as fast as possible sending in chunks of $ as I can, to get the full deletion which I know will help me. Just wondering how it would affect me in the mean time)

[kjm79]

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@lpayton wrote:

I am just wondering, if I am making payments, and they are reporting the payments..but still showing it as a repo..will it help me at all? If the repo is still showing I would think it wouldn't make a difference? A repo is a repo is a repo..right?  While it's being reported as a repo, no the payments themselves won't help, other than reducing your debt.  A repo is repo, as you said.  But getting that deletion afterwards is key.  Having the agreement in writing is great too.  Good luck!

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