When it comes to repossession, there are two ways it can happen: either you surrender the car yourself or wait until a recovery company comes and takes it. If you choose to give up the vehicle yourself, it’s a voluntary repossession. But just because you give up your car voluntarily doesn’t mean you avoid the consequences of repossession. When you surrender your vehicle your credit score still drops, and it shows on your credit reports. If there’s any good side to a voluntary repossession is that you avoid the repossession fees and it the future it will make it easier for lenders to work with you. The key is to reach out to your lender as soon as you think you may miss a payment and let them know what your current situation is and try to avoid a repossession as much as you can.
Involuntary repossession is the complete opposite, this is where you missed 2-3 months of payments so your credit score is already affected by those late payments hurting your credit profile very bad making it very difficult for you to be able to get a new vehicle at a good deal. At this point the bank already tried to reach out to help you as much as they can, and you haven’t made the proper arrangements to keep your vehicle, so they send a recovery company to pick up the vehicle. Regardless if you are showing any of these two repossessions on your credit report, it’s affecting your credit at the same level as the other one. The bottom line is that you may be able to avoid a repossession if you reach out to your lender ahead of time. While not every lender can help you, it doesn’t hurt to ask. If you played all your cards and ran out of options to keep of with those payments your best bet is to voluntarily give it up to avoid the repossession fees and the added stress of your car being taken away unexpectedly.
Here at Credit Services of America we help with ANYTHING that’s on your credit report, as part of our FREE credit consultation we go over your credit profile to get a better understanding on which accounts are affecting your score. We explain how your credit score is determined and what steps we need to take to fix your credit reports. We have been very successful removing any type of repossessions off your credit report saving clients tons of money and a fresh start when its time to use your credit again.
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for details and to discuss your own individual situation