[Iceman-19]

Has anyone ever had a vehicle they were financing through a bank repoed? What happened, and what were the ramifications? Financial, credit, etc.
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[tiger_handheld]

"call the finance company tomorrow morning and work it out and you can get your car back" - Froy from Operation Repo

[dared3vil0]

“Just when you think you’ve got everything under control, the neighbors come over with shotguns.”
— Operation Repo

[08civicsi_coupe]

well if its to the point where they repoed it your credit is fucked for a long time! just burn the car cuz who gives a fuck at this point

[1exotic]

http://www.youtube.com/watch?v=dCuFCbU9ctc&feature=plcp

[FerrariEnzo]

if your car gets repo means you didnt pay your bill... lol what do you think would happen..

good luck trying to apply for any type of loan..

[Iceman-19]

Wow I know what a reposession is, thanks. I didn't get anything repossessed, I was just curious as to what all comes down because of it.
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[Phil@rise]

Years ago I had one repoed. Didnt pay for 4 months after a slew of mechanical problems that they refused to cover under warranty. There was no repercussions. They sold the car for what was owing on the loan and it had no ill effect to my credit rating.

[Iceman-19]

Really? Everything I have read states it will affect your credit.
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[N8]

too bad operation repo is fake, woulda been a good show :S

[FerrariEnzo]

Im guessing the only way it affects your credit is if you let it get to collections... if its still under control of the bank or whoever you got the car from, should be ok..

[AW607]

if your car gets repo means you didnt pay your bill... lol what do you think would happen..


"It ain't no joke
if you don't pay that note"

[604CEFIRO]

Don't listen to these guys. I work in auto credit, lending.

If your car goes into repo status it's because your account has gone past 60-90 days delinquent.

If you get your car repo'd and you don't intend on getting the car back and just defaulting you will get and i9 on your bureau, meaning you've written off the credit line

i9 and r9's will plummet your beacon score, and when you go seek credit next time, creditors will weigh that heavily when assessing your credit.

ESPECIALLY BAD because an auto loan is pretty much a necessity in life.

If you can't keep up with a car payment, creditors will not lend you money for loans, credit cards, etc because if you can't pay for a necessity in life, how are you going to manage paying something that's less important?

Next time u go for an auto loan you will either be turned down, or require a strong a1 cosignor, or a heavy down payment usually 20% or more.

If you end up getting the unit repo'd, but end up settling your payments and getting your car back (which will cost you more than just paying your arrears) your credit score will still drop, and your auto loan credit line will show as derog, it'll show when the payments were missed and how often and how far delinquent it was (i2,i3,i4,i5, i9 = 30,60,90,120 days delinquent or written off). Again, creditors will weigh heavily on that when looking at your credit.

This adverse credit will affect you for a minimum of 2 - 5 years if you plan on applying for something else in the future. Again, creditors will ask for security or cosignor.


Don't be late paying your auto loans. Ever. It's a necessity of life, and weighs heavy against you when any derog appears
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[Iceman-19]

Thank you for the info!

[jlenko]

Don't listen to these guys. I work in auto credit, lending.

If your car goes into repo status it's because your account has gone past 60-90 days delinquent.

If you get your car repo'd and you don't intend on getting the car back and just defaulting you will get and i9 on your bureau, meaning you've written off the credit line

i9 and r9's will plummet your beacon score, and when you go seek credit next time, creditors will weigh that heavily when assessing your credit.

ESPECIALLY BAD because an auto loan is pretty much a necessity in life.

If you can't keep up with a car payment, creditors will not lend you money for loans, credit cards, etc because if you can't pay for a necessity in life, how are you going to manage paying something that's less important?

Next time u go for an auto loan you will either be turned down, or require a strong a1 cosignor, or a heavy down payment usually 20% or more.

If you end up getting the unit repo'd, but end up settling your payments and getting your car back (which will cost you more than just paying your arrears) your credit score will still drop, and your auto loan credit line will show as derog, it'll show when the payments were missed and how often and how far delinquent it was (i2,i3,i4,i5, i9 = 30,60,90,120 days delinquent or written off). Again, creditors will weigh heavily on that when looking at your credit.

This adverse credit will affect you for a minimum of 2 - 5 years if you plan on applying for something else in the future. Again, creditors will ask for security or cosignor.


Don't be late paying your auto loans. Ever. It's a necessity of life, and weighs heavy against you when any derog appears
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Or.. you could just live within your means and buy a used car, with cash. Not everyone has to get a car loan...

[N8]

Or.. you could just live within your means and buy a used car, with cash. Not everyone has to get a car loan...

Yea no shit.. wish I knew that when I got my first job in my career..first thing I got was a car loan. Wasted so much money and got a bad rate cuz I fucked up on some credit cards in college. Now I have a car paid in cash driving for the past year and feel soooo much better, not nearly as nice of a car but it works. And now I almost have enough cash to own a nice car, so I can spend more on mods vs paying the bank :alonehappy:

[Great68]

Or.. you could just live within your means and buy a used car, with cash. Not everyone has to get a car loan...

I think 604CEFIRO was explaining that having a car loan in good standing looks really favourable on your credit rating to potential future loan requests, like for a mortgage. Buying a car with cash, however fiscally responsible you think it is, does nothing to help your credit rating (but it doesn't hurt your rating either).

I wouldn't necessarily consider someone buying a car with a loan to be buying a car "out of their means" either.

[freakshow]

^ +1

I think he meant 'If you have an auto loan, it's related to one of your necessities, which makes it more important for you to pay it'. Not that having an auto load in and of itself is a necessity..

[jlenko]

Oh, I get what he means. You can build a nice solid credit rating with a couple of credit cards too.

I bought a new car.. once. Got 0.9% financing.. and never missed a payment. But the amount of money I wasted on that 'new' car.. which I HAD to have (in my own head) because all my friends had new cars and I had to fit in..

I could have bought a nice lightly used Cadillac and been way more comfortable.. and probably paid less.. but instead I bought a new car to be a poser. (insert Cavalier joke here, fags)

[Iceman-19]

Cavaliers are fine commuter cars, lambo doors on a Cavalier though......

[Great68]

I bought a new car.. once. Got 0.9% financing.. and never missed a payment. But the amount of money I wasted on that 'new' car.. which I HAD to have (in my own head) because all my friends had new cars and I had to fit in..

I could have bought a nice lightly used Cadillac and been way more comfortable.. and probably paid less.. but instead I bought a new car to be a poser. (insert Cavalier joke here, fags)

Ok that's fine.

But just because you made a bad financial decision for yourself, does not mean everyone who gets a car loan is "Living beyond their means". Which is the blanket you were using in your original statement.

[SumAznGuy]

Ok that's fine.

But just because you made a bad financial decision for yourself, does not mean everyone who gets a car loan is "Living beyond their means". Which is the blanket you were using in your original statement.

A fine example of this is having the cash to buy the car outright but why would you if the car is at 0% financing.

[604CEFIRO]

Lol why so OT?

Original poster asked about the implications of what happens to a persons credit if they get a financed / leased vehicle repo'd.
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[Iceman-19]

Because its the internet.

[Phil@rise]

I dont understand half the terms 604cefiro is using, thats fine and I'm not disputing them but I'm left wondering, if thats the case as it will always ruin your credit to have a car repoed. Why was I able to secure financing on another car only a year after mine was repoed? Keep in mind this was some 15 years ago perhaps things were more slack?
Do other bills given on a use service now pay later like phone hydro ets do they effect credit as well either good or bad as they are a necessity for life?

[Iceman-19]

Have you never pulled your own credit report? You should if you havent.

[604CEFIRO]

Why was I able to secure financing on another car only a year after mine was repoed? Keep in mind this was some 15 years ago perhaps things were more slack?


It is hard to say why. It could be a combination of reasons but things that come to mind are:

- the lien was not secured correctly against your name when you first got your vehicle = the credit line was never reported onto your credit bureau
- human error when assessing your credit the second time around
- were you the primary or secondary on the loan? again, depending on the finance company, human error occurs when registering a lien on the 2nd person

15 years ago is a long time and I'm sure credit buying trends have changed a LOT since then.

Do other bills given on a use service now pay later like phone hydro ets do they effect credit as well either good or bad as they are a necessity for life?

It may be easier to explain it to you this way.

Never be late on:
- creditcards
- auto loans
- mortgages
- lines of credit
- bank loans
- any type of leasing, ie// musical instruments from Long Mcquade etc

Things that kind of don't matter as much if you were late paying:
- cell phone / mobility / cable

Hydro is never reported on your credit bureau as a "credit line". The only time I've seen hydro on a bureau is when it's gone to collections status. Any time you start getting collection calls, especially from 3rd party agencies, your debt's already been written off and sold to a 3rd party company to recover the debt and reported as so on your bureau. It will show as a Collection item and drag your Beacon down.

Tips on having a strong credit bureau:

1.) Don't be late paying your credit lines (creditcards, line of credits, auto loans, mortgages etc). As long as you pay the bare minimum prior to the due date, your creditscore will not be affected negatively. So if the minimum payment on your creditcard is $75 dollars, pay that $75 dollars ON TIME

2.) Don't go shopping for credit randomly at multiple places and not follow through
- "Shopping around" drives your credit score down. I see a ton of idiots going to Kingsway Honda, then Richmond Honda, then Burrard Acura applying for credit at multiple places. "Shopping around" is credit seeking, and when you do it too many times in a short period, it reflects very poorly on your creditscore. Each time a creditor pulls your credit, your Beacon score will go down.

The only reason people shop around is usually because one place turned them down, and then they go somewhere else... rinse and repeat.

If you wanna shop around and get a better deal, you NEGOTIATE a deal prior to having your credit pulled.

3.) Use your creditcard, then pay it off. Keeping a balance is ok, but try to keep the balance between 25-50%. Don't let it ride at max. Maxed credit drives your score down

4.) It's better to keep creditcards you don't use open, than to close them off by calling Visa/Mastercard and requesting the credit line closed. Sometimes, credit card companies will misreport the closure, and it ends up looking like a R9 write off. That isn't your fault, again it's human error.

There's more, but I'm kinda busy at work :P

[death_blossom]

How much does your credit get affected if u miss your credit card payment by a few days? While I don't do it anymore, there have been a handful of times where I simply forgot to pay my credit card bill, or was waiting for pay day. It never happened consistently, but would happen once in a while.
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[604CEFIRO]

^ Great question. Unfortunately I'm not able to put an actual number of how much your beacon score drops each time you miss a payment.

But, what a lot of banks nowadays offer to customers is an auto-minimum payment option onto your creditcards. It links it to your bank account so that when your creditcard payment is due, it will auto deduct the minimum payment out of your account to cover that months payment. It'll help protect you from getting dings against your credit bureau for late payments.

Keep in mind, when creditors review a persons credit, we buy within a guideline and generally there is an acceptable amount of late payment(s) on each credit line per year.

Different lenders will have different guidelines. Mortgage guidelines will probably be more strict vs. Auto lending guidelines etc.

Keep in mind the beacon score is not the end all be all of your credit. It's only one part of what we look at. Having a high beacon score is a good indication that the customer pays well, maintains good standing on their credit lines, etc. It's an indicator, but we don't base your profile just on that score.

Ex.// A person might have a 750 beacon score (which is a great score), but only has one credit card with a $1000 limit, $0 balance, established in July 2012. This person might be looking to purchase a $35,000 vehicle. Does this persons credit support a $35k purchase? No... but they score high, and have perfectly clean credit.

That's where some confusion is with people new to credit...

[inv4zn]

There are so many people who are either misinformed or completely ignorant as to how credit really works in our society and how much it's needed...

And they go around telling other ignorant people misinformation, and it just spreads.

Some of the things I've heard from my friends...:facepalm:

Thanks for the solid information.

[Iceman-19]

I'm glad I started this thread! It really delivered.
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[death_blossom]

There are so many people who are either misinformed or completely ignorant as to how credit really works in our society and how much it's needed...

And they go around telling other ignorant people misinformation, and it just spreads.

Some of the things I've heard from my friends...:facepalm:

Care to share? I had someone tell me once that it is best for your credit to pay off your credit card bill completely every month. He implied that carrying a balance on your credit card has negative effects on credit score.
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[SumAznGuy]

Care to share? I had someone tell me once that it is best for your credit to pay off your credit card bill completely every month. He implied that carrying a balance on your credit card has negative effects on credit score.
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Take it for what it's worth but I am bad when it comes to paying my credit card bill. For a while when I was in between jobs, I lived off of my credit card. I was always paying off the minimum and quite often I was a few days late because I would forget. Well, I still managed to get to get a mortgage from the bank, twice.
It won't kill your credit rating but if you have the money to pay off the credit card, why wouldn't since most bank credit cards are going to be 18% or higher interest.

[Hondaracer]

I think 604CEFIRO was explaining that having a car loan in good standing looks really favourable on your credit rating to potential future loan requests, like for a mortgage. Buying a car with cash, however fiscally responsible you think it is, does nothing to help your credit rating (but it doesn't hurt your rating either).

I wouldn't necessarily consider someone buying a car with a loan to be buying a car "out of their means" either.

with financing rates as they are today, your nuts to buy a car outright