New Contributor
Posts: 52
Registered: ‎09-20-2012
Re: capitol one auto loan

Here's my opinion, which may be different than most of the more experienced posters, but it worked great for me. I had a Chapter 13 that was dismissed (not discharged). The reason for this was that I only took a BK to save my house, but I got to the point where it made more sense to let it go. No payments were made towards my car loan with Capital One over 18 months. By ridding myself of my house payment, I was able to get caught up with Capital One in about six months.  In fact, I was ahead six payments when I refi'd my car through another lender. Capital One was reporting "charge off, now pays as agreed" It was the only negative account I had open. I didn't feel comfortable with the advice I was getting on the forum so I went with my gut. I had 70% equity in my car and owed.$5600. I could've paid the car off in six months, but installment debt is the best debt you can have. So I refi'd, got a lower rate, took a 24 month amortization. The reason is that credit scoring focuses on how you managed over the last 24 months. My payments are lower by $100. The amount of interest over 24 months on a $5600 loan is about $400. I don't mind paying the interest to get the benefit of an installment account in good standing and closing a negative account. My scores went up by 25 points in each bureau. I have been paying aggressively towards this and the balance is at $4900 after 45 days. I am frustrated with Capital One and file a claim with the BBB. They believe they are reporting accurately, but all three credit bureaus were showing that I had a recent late payment, when I hadn't been late in over two years. I believe it is the way it is being coded in the data that goes to the credit bureaus. I think they are showing a rolling 90 because of how it came out of BK. I am hoping they will fix it before I got to the FTC.