Car repo'ed last night but have the money to pay it off
Date: Fri, 07/29/2011 - 10:42
My car was repo'ed last night. I've been a slow payer but was behind on my June payment and as of today my July. I live in CA. Ironically I received a check from my father's estate on Wednesday which will more than cover the cost to pay of the car in full and afford me to purchase a new vehicle and have plenty left over. I'll be making a deposit today and the funds should be available early next week. The repo guy said that Wells Fargo will be sending me something certified mail. So I have a few questions....
1. Since it was repo'ed does it immediately show up my credit report as repossession whether I pay it off next week or not?
2. If the repo will be on my credit report would it be better for me to let them sell it at auction and just pay them the difference including any extra fees?
3. If the repo won't show up on my credit report, is better to pay it off and get it back and then sell or trade it when I buy my new vehicle.
Thanks in advance for your help
Kim T.
Pay it off
Ideally, since you are paying the are and effectively redeeming the property, and paying off the loan you might get by with just the lates on your CR. Definitely better to pay it off.
No derogatory item must be reported to your CR. It is entirely
No derogatory item must be reported to your CR. It is entirely up to the creditor whether or not to report it. If you pay immediately, and get assurance that they wont report, that is about the best you can do. Since creditors normally report to a CRA only once a month, so whether or not they report might depend on when their next reporting date is, and how quickly you clean this up. I would get right on it.
Once reported to a CRA, paying wont secure removal of the derogatory reporting, and it will stay in your CR for 7 years. I would get it paid, and clear the negative aspects of having debt in arrears that you did not pay. If they auction the car, that might reduce your net indebtedness, but it will still appear as an unpaid debt that went through repossession.