Credit Score Cowgirl

We were caught in an ice storm and totaled our truck.  Wasn’t our fault, a young lady lost control and came at us head-on, foot on the gas.  Everyones okay.

Her insurance said it would take 14,600. to fix our chevy avalanche.  We didn’t think that was right since the front end was now about 6 inches long! 

We called our insurance company to send their adjuster and they said it would take 23,600. Totaled.  They said they would write us a check and get the other company to ‘come on board’. The fair market value of our truck is 25635.  pay off is 25365.  Our company said it would take the ‘fmv’ and average it with the price of similar vehicles selling in our area.  I figure we’re screwed! 

Yes! I was upside down and yes! I was throwing money at this truck.I had no intention of trading this vehicle soooo I thought I had time. 

Meantime, credit card companies have been doing the ‘bait and switch’ and interest rates have been skyrocketing, I ‘opted out’ and closed these accounts to keep rates from going higher.  Fico went from 674 to I don’t even want to look. 

We live IN THE MIDDLE OF NOWHERE 26 miles from a very small town, my husband is a ranch foreman, yes folks the real Mccoy cowboy.  So he makes squat.  They just don’t pay for legends. 

I work in town and this business (self-employed) is what pays the bills. A $500 beater is just not going to stay together on 16 miles of dirt road. 

I don’t have big eyes, but it has to be a truck 4×4, low water crossings don’t mix well with low clearance vehicles. 

I don’t want to go upside down with some shady dealer but the fico has me in a head-lock. 

I haven’t gotten the word from the insurance company and am freaking out. 

Any words of advice?

Kayla

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Howdy Kayla,

Look into your existing financing agreement with the truck to determine how the lender deals with the subject of gap coverage.  The insurance company’s settlement may be sufficient to satisfy the loan.

Closing credit card accounts is not normally the right move to make if your goal is to improve your credit score.  You “closed these accounts to keep rates from going higher”, but if those accounts had balances, then just the opposite may have occurred.  Can the accounts be reopened? 

Thanks for the questions and hope this helps.

Paul