When a vehicle is repossessed, the lender generally sells the property at auction. See the article Effects of Bankruptcy, Foreclosure, Maxing-Out a Credit Card, and Debt Settlement On a Credit Score to see how delinquencies and other negative events harm a FICO score. While it is likely that the repossession of your motorcycle will cause you some credit problems in the future, you should probably be more concerned about the possibility of the lender attempting to collect a deficiency balance on this obligation once the repossession is complete and the vehicle has been sold. For more information about credit, credit scoring, and credit reports, I encourage you to visit the credit resources page. Had this repossession not occurred, your credit rating may have started to improve once these credit card debts began to fall off your report unfortunately, the repossession means that you will likely be facing an uphill battle in obtaining reasonably priced credit for several years to come. However, since the credit card debts that were charged off were already six years old, their negative impact on your credit rating would have ended within a year derogatory credit listings fall off of your credit report seven years from the date of charge off. Had your credit score been an 800, I would have expected a significant drop after this repossession, but since your credit rating has already been damaged by other delinquent accounts, the impact of this repossession will likely be less severe, relatively speaking. However, given the fact that your credit rating has already dropped to 590 due to past financial difficulties, this repossession may not cause a large drop in your credit rating. Any repossession is generally considered a strongly negative mark on a consumer’s credit profile, and will usually lower his or her credit rating significantly.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |