Is there a difference in a voluntary reposession and involuntary reposession on your credit report?

Is there a difference, if so, what is it, and which would look better on your credit report?


Any help/advice is greatly appreciated.


Thanks!

Is there a difference in a voluntary reposession and involuntary reposession on your credit report?
Auto finance is what I do for a living and all of the other posters are correct.





Credit wise there is no difference.





The bad thing about repossessions without a bankruptcy to explain it is they will ruin your credit for several years and make it very hard to get any other types of loans without making massive down payments, paying huge fees and State maximum interest rates.





After the car goes back the lender will sell it at auction for far less then it's worth and come after you for the difference plus all fees for towing, storage, reconditioning, interest, lawyers and anything else they can think of. This will amount to several thousand dollars and if you do not pay they can take you to court, get a judgment and attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own.





If there is any way you can avoid this, do so.





Sell the car and take out a loan so you can pay the difference, this will be much cheaper in the long run and not ruin your credit.
Reply:No difference at all on your credit report.





The vehicle will be sold cheaply at auction. You will be liable for the loan balance plus all the fees. It could be as much as you owe now.





You would be much better off to sell the vehicle and pay the difference out of your pocket.
Reply:not really. Voluntary is usually less costly
Reply:there is a slight difference but in the end the credit reported form either will be negative. voluntary would "look" better if you were in a situation to give an explanation and if that explanation will have an impact on the creditors decision. at my job we ask for explanation letters all of the time and sometimes a strong explanation letter will impact the loan decision.
Reply:Not really any difference because they both report as 8's. Some agencies will show whether it is voluntary or involuntary but it usually doesn't matter to potential creditors. As a banker, if I see an I8 (repo code on credit bureau) it doesn't matter to me if it is voluntary or involuntary because a repo is a repo.





If you voluntarily let a car go back for a "legitimate" reason such a divorce, etc., most creditors will want to know why and ask what you did to avoid it. Depending on your answer, there are some banks that may give you another chance but you will probably pay for it in higher interest rates.
Reply:Nope! Repossession is repossession, no matter how you spin it!
Reply:there is no difference...
Reply:No, a repo is a repo, point blank, when it comes to the way your credit is viewed.