Can voluntary repossession help me rebuild my credit faster?

S

socksclutch123

New Member
Hey there, I'm really thinking about doing a voluntary repossession—basically surrendering—my car so I can get that whole account off my credit report. The thing is, the car started at $10,00, but I was young, super stressed, and in a tight spot, so I ended up with a 28% interest rate. The payoff is just under $15,000 now, and my monthly payment is $380. I had a bunch of missed payments back in 2020 and quite a few late ones since then. My credit score is sitting in the 400s, and this car is the only thing on my report. I'd love to let the car go so I can start working on building my credit back up. Has anyone here tried something similar or have any tips from experience?
 
Yes, it can be removed. It may not be easy. Start building positive credit now. This helps your credit profile. When the item is removed, you'll already have positive history. I offer a free consultation.
 
So, I did a voluntary repo a while back, but then about a year later I went for a settlement offer ended up paying around half my original balance. Honestly, I just couldn’t get it off my credit report, and I’d seen other people getting sued over the full amount. I had a friend who got taken to court over a credit card she couldn’t pay after being out of work, and I really didn’t want to go through all.that ending up in court just to hear I still had to pay or risk getting garnished. When your balance gets up there, you’ve gotta be careful chances are they’re not just going to drop it.
 
I undertook a voluntary repossession, yet the arrangement required me to continue making payments until the loan balance was settled. Looking back, I'm not entirely sure I would choose to go through that process again.
 
Hey, just a heads up: if you refinance the loan with a credit union, you could bring down the interest rate. On the other hand, if you give the vehicle back, it'll go to auction and you'll still be on the hook for the remaining balance.
 
Alright, so if you let them repossess it, you're still on the hook for what you owe, and you're left without the car you're paying for.

Maybe just give the finance company a call? See if they're willing to work something out like a lower interest rate or smaller payments.
 
Perhaps consider trying to get the account removed from your credit report while continuing to make payments on the note. That note might actually be considered relatively inexpensive in 2024.
 
Hey, make sure you do your homework with the details in the comments. You've got options, so get creative with it. If you're planning to be in the market, I'd really hustle to get that tradeline cleared up ASAP. That way, if your credit bounces back, you can jump on leasing or financing another ride before the repo hits hoping they don't re report it in the meantime. It's all about timing if you take that path.
 
You might want to think about selling it and using the money you get to chip away at that loan. Just a heads up, it's gonna stay on your credit report until it's either paid off or settled. Another option is to rent it out and put that rental income toward the debt.
 
Turning the car in. Not removed from the credit report. You still pay the difference. Loan amount. Auction price. Your best option. Make the remainder of your payments. On time.
 
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