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Thursday, March 6, 2014

Voluntary Repossessions Hurt Your Credit Score

This will be a short post, but if you're wondering whether returning your car to the dealer will result in a repossession listing on your credit report, the unequivocal answer is YES!!! In the eyes of the credit bureau's there is no difference between you voluntarily returning the vehicle and having a company come and get it. The wording will be different, saying voluntary surrender instead of repossession but they both will hurt your score. 

This is important when purchasing a vehicle to make sure you can afford the vehicle should something happen to your income. Plan appropriately and you won't have to deal with that hassle. If any car salesman tries to suggest returning the vehicle should you not be able to make the payments, just remember you don't need this negative listing hurting your credit score for seven years.

P.S. here is a link from Experian saying exactly what is in this post.
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