I am trying to help raise my credit score so that I can purchase a home in a year or so. I am working on paying my credit cards to 0 balances and I have always paid them on time. My question is how will my car repossession (1yr ago) affect me?

I figured I would pay the credit cards to $0 first to help my credit-debt ratio because I cant afford to pay on the car and the credit cards at the same time. Is this the best solution, or should I be concentrating on paying on the repossesion and old credit card debts that were charged off (over 2yrs ago)?

Do you have any tips on getting the best deal/pmts when I try and contact the collection agency my repossesion is with?

Should I request anything in writing from them prior to making payments, so that they will be sure to notate my credit accordingly?

Thanks for all of your help and great site!

Alexis (more…)

well I got a car at a used car lot and got in house financing on it. I put 1000.00 down and the balance of 2000.00 was left for me to pay. It was an As-is sale. Within first month the car stopped working for some reason. I called the car lot they fixed it for free I got it back. That same month it stopped working.. I then moved to a new address and eventually called for them to come pick it up. I have no proof that they took it. But when I went to apply for a car loan, now mind you this happened in 2004 and its now 2008. they are saying i owe them the full price. i was young and naive and dont have any of the paper work for the car that i signed. what do i do?

AFATASI (more…)

Almost a year ago my car was repo’d.  Now I am getting a letter saying that it was sold at auction and the remaining amount is my responsibility. What I want to know is can they legally collect the money since I did give the vehicle back since I couldn’t afford it. 

I really can’t afford to pay them and I thought once it was repod it was their problem. 

I know it messed up my credit but now all of this?!  I live in Arkansas.

Leslie (more…)

My husband had a car reposessed back in 2001 on his credit report it states it has been turned over to a collection agency the date of 1st delinquency states 11/2001 .then again on closed accounts it states 1st del 8/2002 and then again on a different one it states 5/2006…

When does the sol come into effect… It is saying he owes 10,458 dollars .. Does the time clock keep ticking every time the sell this account to a differnet collection agency or how does it work ? Any information would be greatly appreciated ..

Kind regards,
Kerryn (more…)

My credit is in the toliet because of my divorce after a 15 year marriage, shortly before and partly due to the break-up, he bought a ford truck that was way out of our budget..

Next we purchased a home that if we budget properly we would be fine. I made more money with a new job.  He became frivilous will all our financial obligations, and 9 months later he walks out leaving me with the home, kids, bills that were supposed to be his part to pay, not taken care of.

I did everything to bring all bills to current, but after months with no financial support from him, I had to start saving money for an attorney, and find a new home for my kids and I. I wrote a letter of forbearance for the home. I paid most of the smaller bills off and now I am hit with a truck note that he doesn’t pay regularly, it has been repossessed, but he has paid to get it back.

I am sure you know where I am going. How do I begin to fix my credit.

I have recently been turned down for a job due to this credit disaster. Because in my line of work I deal with clients credit cards numbers.

Ruth (more…)

hello,

       I’ve been reading your website that last two days and decided to finally write for your opinion.
I am 25 year old single mom who just a had a baby boy.I have a HORRIBLE Credit Report and Im not sure my next step to take.The last two years I took the approach to start paying off my collections on my credit report to bring up my score. Which to my surprise it did raise it because I was able to buy a car in July of 2007. I also went and got 2 credit cards.When I was 18 i went and obtain creidt and didnt know how to handle it. Now because My car note and my debt took the best of me. My credit score plummet down to the floor when I bought my car my credit score was 640 now its below 500.My car was repossessed and my credit cards are in collections. i want this to be clear and not showing credit settled on my report when i Pay my debts.

Question 1
will paying off my collection debt and repo help my credit score

QUestion 2
If no to question 1 how can i raise my credit score.

Question 3
How long should i wait to purchase a house for my son and I.

I already have 3 arrangements with collection agencies to pay off the debt. Was this the right thing to do

PLEASE HELP

Francesca (more…)

NCLC Reports [Vol 26, August 2007] that some auto auctions are now videotaping the proceedings.  On page 3 we read:

“The tape of the auction will show if no one else is bidding on a vehicle (a possible indication that there are problems the dealer should have discovered), that the dealer did not bother to inspect the vehicle (indicating negligence in ascertaining whether the car has a wrecked or flood history), or that the dealer carefully inspected the vehicle (indicating that the dealer probably discovered the hidden defects that is subject of the litigation).”

My vehicle was repossessed in April of 2005. I was two months late on my payment and had made firm arrangements to pay with my first check. Two days before I received my check, the finance company repossessed my vehicle while I was working. Recently, I pulled my credit report and soon after began receiving calls from the finance company. I attempted to make arrangements but the finance company stated I could make a lump settlement no payments. From day one they have stated this. I advised recently that I still have no means to pay a lump sum.

A month later the finance company placed account with Collection agency. Since then I have received two notices from them and two calls. One voicemail incidated my file was being turned over to the state of Texas for legal proceedings and one of the Collectors told me they were preparing to file suit. My question: The finance company charged off the balance in June of 2005 but are charging me the same interest rate when I purchased the vehicle and the collection agency total amount is $2000 in addition to the balance forwarded to them from the finance company. I would like to know where I could further research the amount of interest that can be charged and for how long after a charge off by the original creditor has been placed. 2. What type of fees can a collection agency charge. 3.and I was considering sending in a $10 payment along with a letter disputing balance and requesting info from collection agency for a breakdown of the fees to make sure these are legal and applicable charge added to balance. What type of letter would be possibly get results?

Amanda (more…)

My wife and I bought a car in nov of 06 when she was still working, since then she has had do have a couple of major surgeries and is unable to return to work.  We volentarily gave the car back when we were sure we could not make the $700/ mo payments on the car anymore.  The company auctioned the car off for much less than it was worth and say I still owe 21000 on the car including fees, and they are charging %14 interest on the remaining balance. They offered a $14000 settlement if I could come up with $2000 down by the end of aug (which I can’t)and then $400 a month for 3 years to get it taken care of. 

I have spoken with a debt settlement company who for $300 a month (in my savings account)($1200 up front split into 4 payments) can settle it for me as well in three years.  They already have the first $300 payment but I am wondering if this is the best thing I can do for myself?

Any help would be greatly appriecated, I love the site it has been very helpful with some other issues I have been having.

Thank you
Kris (more…)

Okay in 2000 I co-signed on a car with my ex.  We traded in my car for this car.  A week later we broke up and he had to take the new car because it was too expensive for me.  So I went and got a used cheaper truck and we went our separate ways.  I kept in contact with him to make sure he was paying since my name was still on the account.  Finally I started asking him to refinance it so that I could get my name off the account.  Well, I’m not sure if he ever asked, but he told me that they wouldn’t do it.  Then he moved and switched numbers and I lost contact with him in 2002.  Okay so April 1, 2005 after I thought he had it all paid off and my name was off the account I received my first collections call.  This is the first I had heard about it and the car had been repossessed in November of 2004.  I was never notified about any delinquency or that it was going to be repossessed and I had called the lender and gave them my address whenever I broke up with my ex.  They sold it in an auction and the amount they were trying to collect from me is 4600.  I asked why the weren’t contacting my ex and they said he was under the Patriotic act because he was now in the Marines and they couldn’t call him or collect from him.

Okay there are a couple of things weird with this.

When we bought this car it was on a walk away balloon program.  So at the end of 4 years we could either pay or refinance the left over amount.  We also had the option of trading the car in for a new one or we could just give the car back.  I don’t have copies of the contracts and I can not get ahold of my ex to send them and collections will only send me one page of the contract.  I asked for the notes on the account and they mailed them to me.  My ex tried many times to have it refinanced and they wouldn’t because the car had expired tags (he was in the marines and had the car in storage).  He then said he would give the car back.  The company states in the notes that it was a volunteer surrender, but yet I have repossession on my credit.

Also by the notes in the account the payment amount had changed which means he would of resigned a contract without me present.  Which, I think takes me off the account unless someone forged my name.

What should I do????

Tabatha (more…)