Car repossession and credit report
Q: How would the repossession of a vehicle affect a persons credit? This is a result of a divorce settlement that one side was told to pay off a vehicle. The vehicle is in both names. The loan value is more than what the vehicle is worth by a large amount. The side that was deemed responsible through the court to assume payments on the vehicle has missed the first payment since the divorce decree.
A: The repossession stays on your credit report for 7 years from the moment of a delinquency - that first payment which was missed. It will affect credit report rather harsh. From what I have seen, depending on all the variables, e.g., how many open credit lines or accounts a person has, account balances vs. account credit limits, lengths of time the accounts have been opened, and so on, the FICO score could drop by anywhere from 30-40 to 70-80 points on average among the three credit agencies.
Sat Dec 9, 2006 12:12AM | Copyright: www.bad-credit-advisor.com | More in Credit Repair Tips | Comments (0)
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