Will settling an auto repossession improve my credit score rating?

I live in California and my car was repossessed about 7 months ago. After talking to the auto loan company they offered to settle for $2,000. The original amount owed to them was $13,000. In the letter they sent to me with the settlement offer in writing it stated that upon receiving the $2,000 they would amend my credit report to reflect the settlement of this account. What does this mean to my credit rating? Will it help it any or not make too much of a difference?

Will settling an auto repossession improve my credit score rating?

it will show that you paid if off but it will show on your report as still as a repo it will stay there for 7 years

Will settling an auto repossession improve my credit score rating?

it won%26#039;t make it alot better score wise but it will a show paid repo. since it is a fairly new repo you are better off paying it so it doesn%26#039;t show unpaid for the next 7 years. even the small increase in your fica score will be worth it.

Will settling an auto repossession improve my credit score rating?

Probably wont make much of a difference. It it was a repossession, charge off, or other types of bad debt like this paying them off or settling them will do little to help your credit. In your case it is probably unlikely but see if you can negotiate a pay for deletion deal. You may have to offer more for this, but it is your best shot at truly helping your credit. I really doubt they will do this with such a high amount still owned on it, but trying wont cost you anything. If you settle the debt it will still show up in your credit report as a repossession. It will just note that it was %26quot;settled for less than original amount%26quot; or %26quot;legally settled for less than owed%26quot;, or something to that affect. Either way it will still be listed in your report as a repo just with some kind of settled note on like the ones previously mentioned. In the event you can%26#039;t do a pay for delete the only thing that will make your report go up is time which is 7-10 years depending on the laws in california which im not up on. Just make sure you don%26#039;t get any other bad debt%26#039;s on your credit report. Good Luck!

Will settling an auto repossession improve my credit score rating?

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Will settling an auto repossession improve my credit score rating?

Just a fyi my ex hubby did this several years ago and after the loan company settled, they turned the rest to thier insurance company to recoup thier loss and then the insurance company will come after you for the rest of it. So it does get to your credit report one way or another. Good Luck.