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How does letting a car go back to the lienholder affect your credit?
Wiki User
∙ 16y ago
It is a blackmark on you credit for a number of reasons. Each month that the loan is in force there is a record listed to the credit bureaus for each payment made on time or late. So if the car is going back to the leinholder there is generally late payments that will significantly affect your credit rating. Also once a loan is listed as a voluntary repossession as in this case it will show the negative information as well as a balance that is still owed. This is very important to know. The bank (lender) will more then likely sell the car at auction after they take it back. So say your loan is still for 10,000 and the bank sells the car for 7,000. You are still responsible for the 3,000 and they will come after you to collect that even though you no longer have the car. All of that will also be reflected on your credit reports assuming that they report to the three major credit reporting agencies.
Wiki User
∙ 16y ago
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Does letting a car go back to the lien-holder affect your credit even though i took no loan from the bank and also what is the best way to give it back to that person?
If you were the lien holder, how would you like it given back? How soon would you like it given back? and how much money would you want if the person you trusted were to give it back in it's current condition? The credit effect is between you and your God.
Will back taxes effect your student loans?
No, but is will affect your credit report.
Do you need good credit for an auto loan?
For the more expensive cars you will need a good credit rating,you credit rating is a way of letting the lender know how much he or she can lend you with the probability of you paying it back.
If a person does not want a vehicle anymore and gives it back to the lienholder is it considered to be repossessed?
Yes, voluntary repossession. Your credit will still suffer and the leinholder needs to sell the vehicle to get their money back. If they are unable to cover the loan fully, you are responsible for the difference.
What happens to your credit if you purchase an engagement ring on a loan and then return it a few weeks later?
If they accepted the ring back and didn't charge you anything, there will be no affect on your credit. If you owe and don't pay, that will affect your credit.
Do cash advances affect credit ratings?
No. as long as you pay back on time
If you have two cars in your name but you are considering letting one car go back to the company after you get another one how will this affect your credit?
Do you mean defaulting on the loan and allowing it to be reposessed? If so, it will show up as an auto loan default and repo. That will stay on your credit report for several years. Best to sell it and pay it off.
Do unsecured loans affect your credit rating?
An Unsecured loan can very much affect your credit rating, but it depends on whether you pay it back and keep your promise. If not, your credit rating can severely drop and you will lose trust with your provider.
Can an employer not hire due to bad credit?
If back taxes are owed, does this affect being hired?
How will taking a car back to buy here pay here affect credit when they do not report anyway?
If they don't report, then you don't have to worry about it affecting your credit.
My car has been reposed in the BX NYC - what must I do to get it back?
Contact the lienholder. Only they can answer that question.
You bought a car for your fiance and now the wedding is off you need to get rid of the car Can you return the car to the dealer And how will this affect your credit?
In general, you cannot return a car to a dealer. You can sell it back to them, though. Selling it won't affect your credit.
