Score and Car Repo

[Anonymous]

I am thinking about turning in my car, $16.000 still left on it after 7 years. My score is already 540, realistically how fast could I recover as I would have the funds to pay off any other loans I have, they are small, 2 credit cards ($300-$500 range) that I still use, just need to pay the bill. Other than 2 cars, I have no other big loans. Everything else is small. I just want to know for anyone who has had a repo, did it take long to get your score up?

[CreditInspired]

I haven’t had a repo but Google says it could subtract 80-100 pts off your score plus remain on your CRs for 7 years.

Then, there’s the deficiency aspect. You owe $16K but car can only be sold for $9K. You still owe $7K.

I would think twice before going this route. 

[Brian_Earl_Spilner]

It's not just the repo you need to worry about. They'll auction the car off and you'll owe the balance. So, if they sell it for $6k, they're going to come after you for the $10k leftover. If they send it to collections, that will show on your report for 7 years. And if they decide to sue and they get a judgement, that will show up on your report for 10 years. Worst case scenario, you could take a triple hit for 7-10 years.

[CreditInspired]

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@Brian_Earl_Spilner wrote:

It's not just the repo you need to worry about. They'll auction the car off and you'll owe the balance. So, if they sell it for $6k, they're going to come after you for the $10k leftover. If they send it to collections, that will show on your report for 7 years. And if they decide to sue and they get a judgement, that will show up on your report for 10 years. Worst case scenario, you could take a triple hit for 7-10 years.

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Yep, OP. A whole lot of stuff to think about before taking the repo route. 

[gdale6]

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@Brian_Earl_Spilner wrote:

It's not just the repo you need to worry about. They'll auction the car off and you'll owe the balance. So, if they sell it for $6k, they're going to come after you for the $10k leftover. If they send it to collections, that will show on your report for 7 years. And if they decide to sue and they get a judgement, that will show up on your report for 10 years. Worst case scenario, you could take a triple hit for 7-10 years.

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Judgments no longer appear on CRs due to settlement with multi states AGs led by NYS. Prior to this settlement the time period for a judgment to remain on file was 7 years.

[Brian_Earl_Spilner]

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@gdale6 wrote:

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@Brian_Earl_Spilner wrote:

It's not just the repo you need to worry about. They'll auction the car off and you'll owe the balance. So, if they sell it for $6k, they're going to come after you for the $10k leftover. If they send it to collections, that will show on your report for 7 years. And if they decide to sue and they get a judgement, that will show up on your report for 10 years. Worst case scenario, you could take a triple hit for 7-10 years.

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Judgments no longer appear on CRs due to settlement with multi states AGs led by NYS. Prior to this settlement the time period for a judgment to remain on file was 7 years.

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That's interesting. My judgement was from years ago and it was set for 10 years. I wonder if that applies to sagestream and ARS as well.

[Anonymous]

I have a repo, see my scores below. Honestly I'm not sure the impact of it because I redeemed it and kept the car however it still shows as a negative reporting tradeline. I have been denied a card because of this, Wells Fargo, but was able to get NFCU just fine.

The loan is paid off at this point, the repo was in 2017. I now drive a $55k Infiniti soooo it clearly didn't bother them when they ran my credit 🤷‍♂️

[Anonymous]

Thanks everyone for your input. My husband and I decided to keep the vehicle, we will try trading it in again and just work on getting my credit score up, that’s what I wanted anyway but he issue with paying so much on an old vehicle was annoying. Hopefully we can get something that’s worth the $750 payment.