Q: Will my credit score go up when I pay the balance due of my auto repossession of or will it stay the same?
A: Yes, it is possible that your credit score will increase after you pay the balance of your car repossession, but there is a chance it may not increase.
The best way to get a score increase is to have a written agreement – before you make that payment.
Your agreement should specify that in exchange for you paying the balance, the company agrees to delete all negative information about the account from your three credit reports: Equifax, Experian and TransUnion.
Without a written agreement, you could pay the bill and then they will simply “update” your credit reports to say “Paid” but they will leave the previous information about delinquency, late payment or repossession on your reports.
That doesn’t help your score.
- Is Voluntary Repossession Bad for Your Credit? (blogs.abi.org)