We have been working on our credit for awhile now. This past May I was able to buy my wife a new Nissan so she could go to work. June the transmission went out in my truck and I had to buy a new one. instead of getting a new loan we paid out of pocket and things went downhill from there. The Car was reposessed this past Mon. today I paid everything that was owed including late fees to get it back and was told the account was reinstated. How will this affect my credit, and how do I Recover. Help is greatly appreciated
Starting Score: EQ 518 TU 589
Well since its been repo'd that means there was obvious some derogatory marks already put on your report. I'm guess probably 3 missed payments before they started the repo (though I've heard some shadier places like JDByrider have initiated a repo after 1 missed payment).
Either way these derogs will be on your report no matter what. They may have been nice and just put you current from the time you paid it all back and will let you resume payments and as long as they are all on time all you have to worry about is the lates you already got.
However I believe they can put a comment or a status that will come up as a flag - I think its re-instated repo or something like that which will be an additioanl ding on your report.
If you brought it current, I'm sure if its a credit union or a friendlier bank they might have just kept the lats and that been it since in the end they got 100% of the money they spent repoing the car back plus all the other fees/interest.
Either way at this point it doesn't matter what happens to your report unless you can keep that auto loan current.
I'm assuming this is in reference to your wife's car and not the one you paid cash for? otherwise I'm not sure why they would repo a car you paid cash unless it was used as some other collateral.
Oh and as far as recovering - work on keeping your payments current - and once the entire loan is paid off start sending GW letters to try to get those lates removed and or any other derog info they might have given it along the way. Time heals all wounds, but compassion from others is like neosporin. Least they can do is say no, but come a couple years those lates won't sting as much as they do now.
You will have to see what they posted to your CR. Maybe try a GW to them.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
Thank you guys so far< good reponses so far
@hoppermech wrote:We have been working on our credit for awhile now. This past May I was able to buy my wife a new Nissan so she could go to work. June the transmission went out in my truck and I had to buy a new one. instead of getting a new loan we paid out of pocket and things went downhill from there. The Car was reposessed this past Mon. today I paid everything that was owed including late fees to get it back and was told the account was reinstated. How will this affect my credit, and how do I Recover. Help is greatly appreciated
Next time when you run into fixtures for anything try to negotiate down and check out different companies, and be stern about it. It will save alot of money. Unfortunately alot of the posters are right it does stay on your report for a while, because I had a similar situation with my hyundai except I did not get it repossessed. but that was over 2 years ago. Stay current and it will be a thing of the past. If I can recover so can you. I would say stay current for at least a year maybe a year 1/2.