Settled Repo for Less than owed- 24 point drop!

[Anonymous]

I had an outstanding repo balance of $7500, I settled the deficit for $1500.. once the $0 balance reported to the credit reports my scores dropped 24 points on TU, 21 on EQ (both using Vantage 3)... what the heck?!? I was hoping that reporting a $0 balance due on the repo would help my score not hurt...  clearly I missed something here.  They added the comment of "settled for less than owed" and changed the report to show 120 days late as of october '15 and repo as of nov '15... the car was actually repo'd in sept '15 and the report use to say as much.

[thornback]

Vantage 3 scores do not respond to credit report changes -- even positive ones -- the same as FICO scores and are often wildly different than your FICO scores (significantly higher or lower).   And lenders do not use them to make credit decisions.    Don't worry about your Vantage scores dropping,  you need to get / monitor your FICO scores to truly determine how this action affected your credit.   You can sign up at CreditCheckTotal.com for a $1 / 7-day trial to get all 3 FICOs, just cancel before the trial ends so you are not charged the monthly fee. 

[Anonymous]

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@Anonymous wrote:

...my scores dropped 24 points on TU, 21 on EQ (both using Vantage 3)... what the heck?!?

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Simple solution here:  Don't look at Vantage Scores.  They aren't relevant, so just ignore them.  Only focus on FICO scores, the scores that a lender will use.