aldogut, This could be very damaging to your credit report. I am not sure how many points it would drop but it would probaly be quite a bit. If you can not make the payments you could possibly try to work something out with the bank. Try going down and speaking with them and let them know your situation. They could maybe help keep your car or know of a route you could go to do less damage to your credit. It still may effect your future chances on securing any type of loan.
It is not possible to say, by how many points exactly will your credit score take a hit. However, as far as the damage is concerned, your credit report will be damaged in a major way. Since a voluntary repossession will be considered as a negative item and any negative item stays on your report for 7 years. However, before considering voluntary repossession, you can try to strike a settlement deal with your creditor.
Asking for a settlement is not as hard as it may sound. Soemtimes people will shy away from this just because they are a little nervous about admitting they can not afford something. Remember the creditor stands to lose money too and by working together you both could lose alot less. I would go down and speak directly to your creditor unless this is not an option. If not then try to call and work something out before the situation gets bad.
Avoid this if you can, not only do you drop points but you will be questioned about it everytime you apply for something till it drops off your report. Then you have the collection hounds and that is a whole other pain in butt to deal with.
Can you call the creditor and try to have your payment lowered or work out something where they don't screw your credit up? Worth a shot to pick up the phone and talk to them, they don't care for these situations either.
aldogut, This could be very damaging to your credit report. I am not sure how many points it would drop but it would probaly be quite a bit. If you can not make the payments you could possibly try to work something out with the bank. Try going down and speaking with them and let them know your situation. They could maybe help keep your car or know of a route you could go to do less damage to your credit. It still may effect your future chances on securing any type of loan.
It will definately damage credit score.
Hi aldogut,
It is not possible to say, by how many points exactly will your credit score take a hit. However, as far as the damage is concerned, your credit report will be damaged in a major way. Since a voluntary repossession will be considered as a negative item and any negative item stays on your report for 7 years. However, before considering voluntary repossession, you can try to strike a settlement deal with your creditor.
Asking for a settlement is not as hard as it may sound. Soemtimes people will shy away from this just because they are a little nervous about admitting they can not afford something. Remember the creditor stands to lose money too and by working together you both could lose alot less. I would go down and speak directly to your creditor unless this is not an option. If not then try to call and work something out before the situation gets bad.
Avoid this if you can, not only do you drop points but you will be questioned about it everytime you apply for something till it drops off your report. Then you have the collection hounds and that is a whole other pain in butt to deal with.
Can you call the creditor and try to have your payment lowered or work out something where they don't screw your credit up? Worth a shot to pick up the phone and talk to them, they don't care for these situations either.
credit i already have
will I lose any of the other credit I already have