Here's my situation:
I have approximately $7,000 in credit card balances, $25,000 automobile loan, and approximately $10,000 in student loans. I'm 27 years old and make $65,000 a year. I recently fell on bad times because I overspent in one month. That caused me to take out cash advances and fall behind on payments to cover my living expenses.
I recently had my vehicle repossessed. Fortunately, I was able to redeem the vehicle and will have the vehicle paid off completely within a week. My plan is to sell the vehicle, pay off all of my credit card balances. This will result in having just the school loans outstanding on my credit report. My payment history on my student loans has been perfect and unblemished.
Once the vehicle is paid off, sold, and the proceeds forwarded to the credit card companies, I will have approximately $5,000 remaining for a down payment on a vehicle.
What are my chances on obtaining a loan/lease for a used/new vehicle? How much of an impact will my credit score receive from paying off the auto loan and credit card balances? I know the repossession will stay on my report for 7 years, but is the effect lessened by the fact that it was redeemed? Will a down payment help? Will I need a co-signer?
I'd like some feedback regarding my situation.
Thanks in advance.
Full Version: Current Situation
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We have an Automotive FAQ (Frequently Asked Questions) section that should prove to be very helpful in your automotive knowledge quest.
In the Reading and Resource Section of this forum, which is a read only forum, you can look up information regarding Sales Tax by State, Lemon Laws by State, along with a number of industry specific topics very relevant from the dealership's perspective.
In the main section of this forum, there are two pinned topics both of which are read only topics. The first concerns Bank and Credit Union rates and tiers. You might find this useful in predicting an interest rate on your next vehicle purchase. The second is a general purpose credit application that you can use to get an idea if you might qualify for an automotive product loan based on an insider's perspective of the information you provide.
You, as a consumer, have a unique advantage to "pick my brain"as I have been in the Automotive Industry since 1972. I will endeavor my utmost to give you up to the minute information and explain any insider workings you may question.
Due to time constraints on my part, I may not always be available to answer your question right away. Don't be discouraged, this is a very busy board. If some extended time goes by without a reply, feel free to reply to your own post by typing the word *bump*. This will *bump* your post back up to the top of the forum where it is more easily seen.
We make every effort to maintain a warm and friendly, and particularly non-judgmental attitude here on CreditBoards. If you find someone is discourteous to you, use the REPORT button located at the bottom of every post-that will ensure that either I or another moderator or Admin looks at the post and decides if it is against our TOS.
Off-topic posts should go in the General Forum. And if you are a credit newbie, take a glance at our Newbies Section.
Come get your new keys!
HAPPY
MOTORINGCB Admin: LKH, Pam, radi8, breeze
CB Mods: cotterpin, CargoJon, CramitCCCA's, fla-tan, MarvBear, psp, pryan67
Forum Leads: TeeSharice, orangecrush and Four20Nik
QUOTE(VanillaEps @ Nov 3 2006, 09:47 AM) 
Here's my situation:
I have approximately $7,000 in credit card balances, $25,000 automobile loan, and approximately $10,000 in student loans. I'm 27 years old and make $65,000 a year. I recently fell on bad times because I overspent in one month. That caused me to take out cash advances and fall behind on payments to cover my living expenses.
I recently had my vehicle repossessed. Fortunately, I was able to redeem the vehicle and will have the vehicle paid off completely within a week. My plan is to sell the vehicle, pay off all of my credit card balances. This will result in having just the school loans outstanding on my credit report. My payment history on my student loans has been perfect and unblemished.
Once the vehicle is paid off, sold, and the proceeds forwarded to the credit card companies, I will have approximately $5,000 remaining for a down payment on a vehicle.
What are my chances on obtaining a loan/lease for a used/new vehicle? How much of an impact will my credit score receive from paying off the auto loan and credit card balances? I know the repossession will stay on my report for 7 years, but is the effect lessened by the fact that it was redeemed? Will a down payment help? Will I need a co-signer?
I'd like some feedback regarding my situation.
Thanks in advance.
I have approximately $7,000 in credit card balances, $25,000 automobile loan, and approximately $10,000 in student loans. I'm 27 years old and make $65,000 a year. I recently fell on bad times because I overspent in one month. That caused me to take out cash advances and fall behind on payments to cover my living expenses.
I recently had my vehicle repossessed. Fortunately, I was able to redeem the vehicle and will have the vehicle paid off completely within a week. My plan is to sell the vehicle, pay off all of my credit card balances. This will result in having just the school loans outstanding on my credit report. My payment history on my student loans has been perfect and unblemished.
Once the vehicle is paid off, sold, and the proceeds forwarded to the credit card companies, I will have approximately $5,000 remaining for a down payment on a vehicle.
What are my chances on obtaining a loan/lease for a used/new vehicle? How much of an impact will my credit score receive from paying off the auto loan and credit card balances? I know the repossession will stay on my report for 7 years, but is the effect lessened by the fact that it was redeemed? Will a down payment help? Will I need a co-signer?
I'd like some feedback regarding my situation.
Thanks in advance.
Welcome to the board VanilliaEps.
You might want to visit the Credit forum on this board with that question. There are a lot of folks over there that will be able to help you clean up your report.
Money talks...plain and simple. If you go into a dealer with a $5,000.00 down payment, they are going to bend over backwards to try and get you into a car.
Good luck on your plan.
A lot will depend on how the redeemed reposession reports to your credit files.
See how it ends up being reported. The best time to ask for a "goodwill" adjustment to the reporting would be while you are again current on the loan, but before fully paying it off.
QUOTE(mk_378 @ Nov 4 2006, 09:13 AM)
See how it ends up being reported. The best time to ask for a "goodwill" adjustment to the reporting would be while you are again current on the loan, but before fully paying it off.
A month later and the vehicle is no longer being reported as a reposession or even a redeemed repossession. The leinholder is reporting the TL as 'paying as agreed,' with the lates on the TL. I didn't even need a goodwill letter to be sent to the leinholder.
How fortunate was I?
Why would the leinholder do this?
Not complaining, just wondering.
very fortunate.
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