Auto-enhanced ?

[basketsbears]

Hi,

How does BK, and turning in one or two vehicles which were included in BK, affect score? Other than that, payments have always been made on time. Are the repossessions considered separately, or just part of BK?

[justbroke]

I can not offer you direct experience, but I can offer what I have seen. So long as you don't have late car loan payments on your credit report prior to filing, your auto-enhanced FICO score should be fine, so long as your general FICO score is fine. The auto-enhanced score tends to be 10-20 points higher than your general FICO score if your payment behavior on prior automobile loans shows that you handled them well.

I do not know what the trade line would show, other than Included In Bankruptcy. If they put any other derogatory note on the trade line, that could impact your auto-enhanced score. What I would say is that if they show as simply "included in bankruptcy" (which even my "redeemed" vehicle shows), it should have no "scaring" affect on your score as would an actual repossession or "settled for less than for amount" indication.

[basketsbears]

Thanks. That has always confused me for some reason. So, prior BK would be what they look at. We kept one vehicle, but didn't reaffirm, so the payments on that don't count either (although we have been paying on time).

Thank you!