Which should I pay off first?
Date: Thu, 04/09/2009 - 02:21
I'm finally catching up financially. I have a credit card bill that is with a collections agency that's around $1200. It was originally $2000, but I've paid it down a little over time. I also got a car repo'd that was worth $9000. It was auctioned off and now I owe like $4000. I called the car lender and they're willing to settle for $2500. I can pay one thing completely off and make around $300-$400 payments to the other. My main thing is that I need a new (used) car. I have a trade in that's worth around $3000 and I know a reasonable lender who will finance me if I clean my credit report up a little bit. They mostly cared about the credit card...
Will I have a better chance of getting financed for a car if I pay the charged off repo or the old credit card off first?
I heard the charged off should be left alone, but I plan on paying the money I owe. Thanks for the answers.
Even after you pay off the charged off account and the old credi
Even after you pay off the charged off account and the old credit card debt, the negative item will not come out of your credit report before 7 years and so your credit score will not improve.
As far as I know, "charge off" does not mean that you are no longer required to pay off the debt. Even if your account is charged off, the creditor can sue you and bring judgment to recover the debt. Now, since judgment may adversely affect your credit score, I think that you should settle the charged off car debt for $2500. But before paying off the debt, you should get the settlement offer in writing.
You should pay the debt with lower balance first and then slowly
You should pay the debt with lower balance first and then slowly pay the debt with higher balance through a repayment plan, if you cannot afford to make both the payments at the same time. I think that since repaying the debt will lower the debt to income ratio, your credit score may improve a bit. Can you tell me your present credit score?
I don't know my current credit score. I spoke with the car le
I don't know my current credit score.
I spoke with the car lender and they told me that if I pay $3000, they'll remove the repo from my credit report. If I pay $2,500, they'll just list it as a settled charge off. Can they really remove the repo (not the loan, just the repo tag) off my credit report? I guess my credit score won't get any higher from this, but it'd help me get a new loan, right?
Hi If your car lender agrees to settle the debt for $3000 and r
Hi
If your car lender agrees to settle the debt for $3000 and remove the repossession from your report, I think it will be a good option than to pay $2500 and get the account listed only as "settled charge off". This is because if repossession gets removed from your credit report, your credit score will definitely improve.
Repossession
I am 27 yrs old and have extremely bad credit(507). About a year ago I had a car repo. I am now in the process of writting letters to the creditors to have some items removed. I owe $10,000 still on the repo in this is really hurting my credit how would I go about removing the repo.