topic Re: Whats gonna happen to credit score? in General Credit Topics

Whats gonna happen to credit score?

Anonymous — Tue, 24 Feb 2009 19:23:12 GMT

She's had the car for 18 months,was 3 months late last May-July,finance company took the 3 missed payments and put them on the back side of her loan.Now she's missed 2 out of the last 3 payments(Just made a payment at my request)She also missed about 4 payments last year on her house,which she was in the process of selling it,she did.How long till her credit recovers?

Re: Whats gonna happen to credit score?

Junejer — Wed, 25 Feb 2009 06:16:53 GMT

Those are majors, Kevin. The effect of 90 dpd will last for years. No one looks favorably upon a mortgage late. She has to keep up with those payments, especially if the house doesn't sell quickly. She doesn't want to end up in foreclosure behind this.

Re: Whats gonna happen to credit score?

Anonymous — Wed, 25 Feb 2009 11:56:57 GMT

Byrdman's right. Major hurt to the FICOs.

Here's the answer for the question you didn't ask: Yup, if you co-signed on the loans, you're dinged, too.

Hopefully, you didn't.

Re: Whats gonna happen to credit score?

Anonymous — Wed, 25 Feb 2009 14:05:37 GMT

I'm not co-signed on any of her loans.The house was sold last August,bank told her she was 2 weeks away before the foreclosure procedure would've started. The car is a situation where she's missed probably 5 payments in the last 9 months,the finance company put the first 3 missed payments on the back end.The last 2 missed payments has me thinking maybe she should turn the car in?

Re: Whats gonna happen to credit score?

Junejer — Wed, 25 Feb 2009 14:52:34 GMT

If she does that, the account will show up as a repo and will tank her scores even further. Is it that she is just over-extended or is there some other reason why she is not paying?

Re: Whats gonna happen to credit score?

wilee — Wed, 25 Feb 2009 15:41:31 GMT

Turning the car in won't make it go away. Assuming it was a new car with little to no money down, turning it in after only 18 months will likely leave her owing several thousand dollars. Why is she late paying?

Re: Whats gonna happen to credit score?

Anonymous — Wed, 25 Feb 2009 15:44:30 GMT

Well she's having a hard time making ends meet,i've helped her some,but I can do only so much on a Army salary.My plan is if they take her car,she can use my F-150, while I use my other vehice.Then the next 6-9months help her save for a $4000-5000 car,so she does'nt have car payments and she can recover emotionally and financially.

Re: Whats gonna happen to credit score?

Junejer — Wed, 25 Feb 2009 15:54:55 GMT

Just be prepared to help her recover "FICO-ally" too. There is going to be a really long road to recovery. Regardless of whether or not she turns it in, it will be reported as a Repossession.

Re: Whats gonna happen to credit score?

wilee — Wed, 25 Feb 2009 16:02:25 GMT

If she's capable of saving $5K over the next 9 months, I'd think she'd be better off just making the car payments. Will she have a decent amount of cash within 2 months to attempt a settlement with the finance company? If she has cash ready after the car is auctioned off, she have much more negotiating leverage to pay less than she owes.

Re: Whats gonna happen to credit score?

Anonymous — Wed, 25 Feb 2009 16:36:31 GMT

I don't really think she'll have a good chunk within the next 2 months,maybe $1500(If I help her and not with anything else)I figured I'll help her with about $200 per month for 6-9 months and she'll give $ also and get her a decent car.She told me that she owes like $18,000 still on a loan with 2 1/2 years remaining.