Phoenix, AZ -- (SBWIRE) -- 07/30/2014 -- How Does Creditor Repossession Compare to Voluntary Repossession?
Most people know someone whose car has been repossessed. They may not know about voluntary repossession, which is different from lender repossession. So how do voluntary and creditor repossessions compare? Credit-yogi.com – the most trustworthy supplier of online fiscal guidance – can answer these questions in an opening conversation with a staff member, during which these topics may be covered:
- Defining Creditor Repossession
- Explaining Voluntary Repossession
- Damage to Credit Scores
- Recuperating from Either
Creditor Repossession Process
If someone defaults on his car loan, the creditor can begin the repossession procedure. He’ll let the borrower know the car will be repossessed, hire a repo agency, then pay an agent to bring the vehicle to a storage facility. This should be straightforward, but is often complicated by automobile owners. Credit-yogi.com has 15 years’ experience with car repossession to share with those in need of it; just stop by the website to pick it up.
Voluntarily Surrendering a Vehicle
Voluntary auto repossession happens when a borrower gives the vehicle back to his lender because he can no longer afford the payments. How do voluntary and creditor repossessions compare? When one gives his vehicle back on purpose, it shows that he is responsible enough to realize his inability to handle the payments, making the lender more willing to work with him again. A person whose vehicle is repossessed against his wishes is not in the same position.
Effects on Credit Scores
Damage is done to one’s credit rating by both kinds of repossession, but voluntary repossession causes less injury than one ordered by a creditor. Giving the vehicle back because one can’t pay for it is less harmful because it’s voluntary. When a lender has to hire a company to get the vehicle, it reflects poorly on the borrower and does more credit damage. Credit-yogi.com has a 24/7, 365 toll-free number that folks can dial to ask questions with no obligation, so call soon to learn more about repossessions.
Healing from the Pain
How do voluntary and creditor repossessions compare? Well, it takes much less time to recuperate from giving one’s car back than it does to get over one begun by a creditor. Although both result in people having no vehicle, it’s also easier for one who surrenders his car to get a loan for a different one later. Lenders frown on those who’ve had their autos taken back, so their chances of obtaining a loan up the road are slim. Consensus? Given the choice, voluntary repossession is a far better option than creditor repossession.
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