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How will paying for a car loan on a repo car affect my credit score?

Asked by: 2298 views
Car Loan

My husband and I signed a ,000 loan on a truck. The payments were behind and the car was in a wreck. The truck was repossessed and the loan company says we still owe 00. The loan company offered a settlement of 00 if we pay by the end of the month. Does this sound right to anyone?
How would it really affect my credit if I pay off the loan now?

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1 Answers

  1. 0 Votes Thumb up 0 Votes Thumb down 0 Votes

    Sounds like a great deal, and is not that uncommon. Paying off the outstanding balance on a repo can only help your credit.

    HOWEVER, GET IT IN WRITING! Before you send that $2,800 payment, make them put it in writing that $2,800 will settle the debt and they will report it as PAID IN FULL. If they don’t put it in writing for you, then after you pay $2,800 they’ll say your balance is $5,200! (5000-2800) Collection companies are snakes!

    Good luck!

    Digger - Aug 09, 2012 | Reply


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