Car Repossession buy-back credit effect?

Heya Dopers, Longtime reader, first time poster.

My aunt (really…not me…I swear) had her car reposessed when she moved and forgot to make the payments for 3 months ( :confused: )

She can buy the car back for the balance of the loan and the repossion fees etc.

Her question is this: Will she still have a reposssion listed on her credit report if she buys the car back?

Yes, for sure! That will not go off her credit for at least 7-10 years. Sorry to your Aunt.

And welcome aboard!
One more thing, if she does buy it back it would look better to creditors…but it would still be a black spot on her credit. If bought back it would just be slightly…very slightly a little better…

Your aunt might want to ask her finance company or bank. The bank can’t lie, but they can omit things on her credit report if they so choose. If she were able to convince them it was a wholly honest mistake, there might be an employee there able to keep it from reporting.

I’m not sure that is entirely accurate Jonathan. And I’m not sure what a credit score has to do with ones personal bank. I use equifax to check my report from time to time and they do not contact a bank what so ever. they contact the credit bureau if I’m not mistaken.

Equifax is a credit burough and they get their information from the banks (or other lending institute). If this aunt’s bank has not yet reported the delinquency on the loan, which I doubt, they could withhold that information from Equifax or any of the other credit reporting agencies.

Definitely ask the bank and collection agency if they will keep this off the credit report in exchange for payment on the car. They want the money. Dinging your credit report doesn’t do them any good at this point.

Oh yeah… If the bank does agree to something like this GET IT IN WRITING!

It’s better to have her resume paying the loan and get the car back.

REPO is alot worse than just showing up as late on several months worth of payments. A Repo-made-good is still bad (and can show up as a very specific type of derog), but a repo-made-good is better than a straight REPO.
The bank is legally obligated to report accurate information. It doesn’t mean they will, but they are obligated to be accurate as to not dupe other lenders. If she gets the vehicle back, instead if just showing some late pay, the accurate thing would be to show it as a repo-made-good.

If I was a bank that decided to lend her money later,because I didn’t know she got repo-ed before, and she defaults…and then I find out the lender from before was being deceiptful on behalf of the consumer, then me and that bank that didn’t accurately report the repo-made-good would go to war.

And it has happened before…alot/

-Credit Guy.

I agree, the bank probably already reported missed payments (R3/I3 which is 3 months late payment) and an R8/I8 - Repo.

I’m not sure if the R3 will be bundled with the R8 but it will stick on the report and is a very bad indicator. I very much doubt it can be “fixed”.

I would pull a credit report and check. If it’s there, she’s screwed for a good long while. Her best bet is to keep her FICO score as high as possible.

Good luck

For car loans, it’d be an “I8”, wherein the I refers to an installment loan and the 8 refers to a Repo.

An “R” preceding any code (R1…R9) would indicate a **R[/]eveloving account - revolving account meaning a typical credit card that lets you carry balances and make min payments…the balance revolves.

So, an R9( would be a credit card/bad written off debt)

Kind of hard to have an R8. :slight_smile:

O = open account like Amex or collection where bal is due immediately to 30 days
R= typical revolving credit card debt, store finance account
I = Installment - like a car loan
M = Mortgage

I knew the R/I difference. It’s just that I’ve seen several R8s on vehicles but I know that a vehicle payment plan should be “I” (never seen an I8).

Maybe I’m just seeing things wrong. Have you ever seen an Revolving car loan?

Or rather, can people have a R8 repo after buying stuff on a Credit card?

No credit card repo…no R8…although I wouldn’t be surprised if some clerk who cut the data tape headed for the bureaus let R8 go out the door…when it should be I8.

Thanks for the replies so far…
One sue is that the bank wants the entire loan repayed in full (plus repo costs) before they will give her the car back. They aren’t allowing her to resume making payments. :rolleyes: