Ask Bill your personal finance question

How Do I Maintain My Credit if I Cannot Afford My Car Loan?

I cannot afford them monthly payments on my car what can I do to not let this damage my credit any further?

I have been off work sense 7-10-09, and I have been falling befind on my car payments. The lender has increased my payment due to being delinquent. There is no way that I can afford that payment, but I don't want to turn in my car and damage my credit any further. What can I do so my credit does not get damaged more than it already has?

Read full question
Bill's Answer
4.2
/5.0
(5 Votes)

Bills.com | Find Learn Save

The only way to maintain a good credit rating is to make your monthly payments on time to all of your creditors consistently. If you are unable to afford the monthly payments on the vehicle then you will experience a negative impact on your credit rating. Furthermore, if you do not make the payments the lender will seek to repossess your vehicle. You should consider trying to sell the vehicle if you know that you cannot afford the payments.

Voluntary Repossession

If you are not able to sell the vehicle you may need to consider voluntary repossession. Voluntary repossession is a term used to describe a situation in which a consumer voluntarily surrenders the property securing a loan, such as an automobile, to the lender that financed the purchase. Both voluntary and standard repossession will harm your credit scores. To learn more visit our Web page All about voluntary repossession.

There is no solution that will allow you to keep the vehicle while not making monthly payments, and maintain a good credit rating. You will have to decide between bringing the monthly payments to a current status, selling the vehicle, voluntarily surrendering the vehicle, or having the lender repossess the vehicle. Keep in mind that although you may experience a negative impact on your credit rating there are methods to help improve your credit. To learn more about credit reports I encourage you to visit our Credit Report Resources Web page.

I hope this information helps you Find. Learn & Save.

Best,

Bill

www.bills.com/

4.2
/5.0
(5 Votes)

People also like to Read

Daniel Cohen

Credit Card Counseling | Credit card counseling has helped millions of people resolve their debt problems. Learn more about c... Read more >>

Betsalel Cohen

There are many ways to get debt help, and Bill has given advice on each one of them.... Read more >>

Mark Cappel

Learn all about credit card debt consolidation loans and find a reputable lender from Bills.com - your source for saving mone... Read more >>

Daniel Cohen

Having an IRS tax lien or a State Tax Lien filed against you demands quick action. Free tips from bills.com. ... Read more >>

0 Comments

1500 characters remaining
loading...