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Posts: 2
Registered: ‎04-17-2007
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Repossession of an RV

Two weeks before Christmas my RV was repo'd for lack of insurance despite the fact it was unregistered and sitting on my lawn.  I redeemed it by purchasing insurance, but couldn't afford the repo fee, so I let it sell at auction.  Anyhow, it tanked my credit from the 700's to about 568.  I have recently paid off the remaining balance with another loan from my credit union. Since the settlement payment was 23,000 compared to the 55,000 of the initial remaining loan balance, how much will that impact my credit score?  I know this will be on my report for 7 years, but my main concern is raising my score as quickly as possible so I can obtain low interest loans on a new car and or house.  I have no credit card debt, no car debt, just my current house mortgage, motorcycle, and home equity loan.  How long with the healing process take to see a decent score again?
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Posts: 5,436
Registered: ‎03-10-2007
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Re: Repossession of an RV



swordman202 wrote:
Two weeks before Christmas my RV was repo'd for lack of insurance despite the fact it was unregistered and sitting on my lawn.  I redeemed it by purchasing insurance, but couldn't afford the repo fee, so I let it sell at auction.  Anyhow, it tanked my credit from the 700's to about 568.  I have recently paid off the remaining balance with another loan from my credit union. Since the settlement payment was 23,000 compared to the 55,000 of the initial remaining loan balance, how much will that impact my credit score?  I know this will be on my report for 7 years, but my main concern is raising my score as quickly as possible so I can obtain low interest loans on a new car and or house.  I have no credit card debt, no car debt, just my current house mortgage, motorcycle, and home equity loan.  How long with the healing process take to see a decent score again?


 
I know that certain actions can affect your score as badly as a BK.  That being said sicne you have made good and it shows paid off, you should see the healing process begin.  Do you have other credit?  If not I would work on reestablishing that lost credit by opening a small credit card.  Since you have an installment loan from your credit Union make payments pristine and if you can afford it bring the balance down a quickly as poss.  The bigger the difference between the borrowed amount and the amount still owed, the more it helps your score.  Even though for some reason if you have limited installs, paying it off can have the opposite effect

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