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Re: Trying To Get Away From Credit Acceptanceplease Advise
You could actually be in a good position if you are willing to sell the car, depending on how much interest/principle is coming out of each payment at this point. If you are still paying a significant amount of interest with each payment, then you have a few options:
1. Throw every extra dollar you have at each payment and pay off the loan early.
2. If the payoff amount of the loan is close to the used retail of the car, you could either sell the car on the open market and pay off the loan, then buy a newer car at a better rate with lower payments, or you could take the car into a dealer and trade it in. The high interest rate loan will be paid off in the transaction and will be replaced by a new much lower interest rate loan now that your fiance has a decent score and a perfect car payment history.
Option 2 actually seems kind of awesome, because you will get a newer car with lower payments . If you want to keep the car, option 1 seems like the best choice.
How Does Paying Off Your Car Financing Affect Your Credit
Since paying off your car can help improve your debt-to-income ratio , it can have a positive impact on your credit as well. When reviewing your credit reports, many lenders and car finance companies look at your DTI to determine your ability to pay off credit. According to Lending Tree, having a completed installment financing account on your credit history could work in your favor whenever you want to apply for another form of financing, such as a home mortgage.
If youre in the market to purchase a vehicle and need help getting approved for car financing, Credit Acceptance can connect you with dealerships in your area that can approve you regardless of your credit history.
Simply fill out the form on our website and well connect you with a car dealership that can help you get started!
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Transfer To A 0% Apr Credit Card
Borrowers who can qualify for a 0% APR credit card can get one and use it to pay off their auto loans. 0% APR credit cards typically provide a 6-18 month period where you pay zero interest. Once the loans are paid off with the credit card, the entire debt will be in the name of the credit card holder borrower, and the cosigner will be released of obligations.
However, the borrower may have to pay a balance transfer fee of 3% or 5%, which can add up to a hefty sum.
Who Is Credit Acceptance
Credit Acceptance provides financing to high credit risk individuals at a high interest rate. At times, the interest rate provided will be just below the statutory limit at 24.99%. We have found from our experience that Credit Acceptance is aggressive at repossessing automobiles when an individual becomes past due. After repossession, Credit Acceptance will sell the vehicle and ultimately sue the individual for the difference between the sale price of the vehicle and the amount the individual owed. This is called the deficiency balance. The deficiency balance can range from a small amount to as much as $15,000.00. Once a Complaint is filed seeking judgment on the deficiency balance, it is very difficult to succeed in court as the contract terms have already been agreed upon. In a vast majority of cases, Credit Acceptance will be successful in obtaining a judgment. After Credit Acceptance obtains a judgment, they can begin garnishment proceedings immediately.
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Once Youve Taken The Steps To Get Approved There Are Several Options To Secure Used Car Financing
While you can get used car financing through a bank, credit union, lender or manufacturer, there are many independent and franchise dealerships that can approve you for auto financing on a used car through the Credit Acceptance program.
Were an indirect auto finance company that works with more than 12,000 car dealers across the nation to help car buyers get approved for new and used car financing. Simply fill out the form on our website and we will connect you with three enrolled dealerships in your local area that can help you start your credit approval to buy a car.
Harassment And Falsely Doing Loan In My Name
Harassing me for one missed payment! Missed the payment in June of last year. They harassed me until I blocked them. Then when I reported that they falsely ran my credit in September, one agent told me they had not! Another agent calls me to tell me they did because I applied for a car loan with them, lol! Um I already have a car loan with u! Thats a lie!! Unethical and predatory!!
Date of experience:October 18, 2021
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Voluntarily Surrender The Vehicle
If you’ve defaulted on your auto loan, the lender may choose to repossess the car. The process isn’t pleasant, and it can wreck your credit score. If you want to avoid repossession, but you have no other options, you can voluntarily surrender the vehicle to your lender.
A voluntary surrender allows you to return the vehicle to your lender on your terms, and while it can damage your credit, it won’t have as big an impact as a repossession. You’ll also be able to avoid certain repossession-related costs, which lenders may choose to add to what you owe. If you feel as though this is your only option to avoid a repo, contact your lender to set up a time and a place for the vehicle to be turned in.
Will Car Loan Debt Settlement Affect My Credit Score
You mentioned paying a settlement balance instead of the full amount owed on your loan. When a lender offers a settlement, they are agreeing to take a loss on the remaining debt in order to close out the account. While paying a settled debt is better than defaulting, a settled account is still considered negative because it means you did not pay the lender the full amount you originally agreed to.
Settled accounts remain on a credit report for up to seven years. If you are current on your loan but then settle the debt rather than pay in full, the seven-year period will start from the date of settlement, so you’ll want to give this option careful consideration. Sometimes a settlement is the best course of action. If you’ve exhausted all other options, most future lenders will view settling the debt as better than not paying the remaining balance at all.
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I Opened An Account With This Company
I opened an account with this company in July 2021.The first thing is they couldnt change my due date, so I always pay 2 weeks late and assessed a late fee.They have no way to view your payment history.I’ve been sick with COVID over a month and thought that I made my last payment. I woke up Sunday morning to an email alert that my credit score dropped 79 points due to a late payment. I, immediately, called the company and was informed that my payment was 45 days late. I asked why no one wrote, called, or emailed me that I was behind. I was informed that they don’t email, or mail correspondences as a payment reminder courtesy, and that I didn’t authorize consent for them to contact me by phone.I made the payment that date and requested for the credit bureau record to be updated. I was informed that I’d have to dispute it with the credit reporting agencies.This is the most unprofessional, tacky, and ghetto comp any that I’ve ever done business with. Keep in mind, that the utility companies send out payment reminders. Now, I must dispute this with the credit reporting agencies. I have very good credit and have never been 30 days late paying, now I have a 76 decrease in my credit score, because I’ve been sick and delirious for weeks, and the company is so unprofessional that they don’t send a courtesy reminder.
Date of experience:June 07, 2022
Why Do You Want To Cancel Your Car Loan
Determining the best course of action to get out of an unwanted car loan largely depends on why you want to be done with this situation. Let’s look at some scenarios, and what you can do to effectively “cancel” your auto loan:
You can see from this list that you have several options for getting out of an auto loan that isn’t working for you, as long as you do it the right way. Whatever your reason for wanting to be out of your car loan, it’s important that you keep communicating with your lender throughout the process.
One situation you don’t want to find yourself in is when your lender doesn’t know you’re looking to make a change. This could result in loan default if you stop making payments, and ultimately, repossession. Repossession negatively affects your credit score, and stays on your credit reports for seven years.
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They Don’t Give A Damn
They don’t give a damn.It took multiple attempts before they acknowledged their mistake about my credit bureau reporting. Then they wanted to argue over my proof of income documents.When they finally agreed to give me the loan they would not approve the vehicle I chose. They only selected 3 pieces of crap from the dealership inventory for me to purchase.They won’t even read this review
Date of experience:May 22, 2021
Cancel Extras First Then Refinance
If you’ve got both a high interest rate and some after-sales coverages to cancel, the smart move is to cancel the products first. Once your loan balance has been reduced, then work on the refinance. Doing both will reduce your monthly payment now and can potentially net you some significant savings in interest charges down the line, too.
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Message From Credit Acceptance Corporation
Many car buyers with bad credit or no credit have difficulty getting approved for auto financing. Credit Acceptance offers indirect subprime auto finance programs that give dealers the ability to say ‘Yes’ to every customer regardless of credit history. The Purchase Program provides a higher upfront advance than the Portfolio Program. Dealers may opt to use this program when a higher advance is desired at time of funding, or in environments with more traditional pay plans. Fill out our form to connect with a Market Area Manager in your area and learn about program availability.
Can A Cosigner Be Removed From An Auto Loan
Peoples financial circumstances can change radically, and sometimes having a cosigner is no longer necessary or tenable. In this situation, the primary borrower may wish to remove the cosigner from the loan.
You can remove a cosigner from an auto loan, and the best way to do so is by refinancing. If you have improved your credit score or income, or if you find a lender with lower eligibility criteria, you can refinance with more favorable rates. However, there are also other strategies that you can employ to remove your cosigner.
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How Do I Apply
To begin your application online, follow these steps:
What documents do I need to apply?
To complete your application, enter your Social Security number and date of birth. And when you visit a dealership, bring the following documents with you:
- Proof of income
- Proof of bank account
They Are A Horrible People
They are a horrible people …. Because of the pandemic i lost my job and i am a low income person , i have no money and i called them asking if they can waive or move couple payments to the end of the contract but they said noooI really hate this company and I advise anybody never to deal with them !!!
Date of experience:April 28, 2020
Truly horrible company , albeit thieves, really screwed on my loan and I had to pay 20000 for a car at auction they sold 495.00 never ever again!!! If they offer u financing try Drivetime much better more honest!!!!
Date of experience:November 01, 2021
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‘damaged My Credit Horribly’
For most Americans, a car is a day-to-day necessity for getting to work and to the doctor, and for other reasons. But for low-income and low-credit consumers, that pressing need is something predatory lenders exploit, Healey says.
In 2015, Massachusetts resident Jimoh Adeleke bought a car with financing from Credit Acceptance. Having a car was essential for him to get to his two jobs, he said during the state attorney generals press conference.
He went with his wife to a dealership to buy a car, his first-ever vehicle purchase, and received financing through Credit Acceptance at an APR of 20.99 percent.
But after two years, in which he said he consistently made on-time payments, his wife became ill and required surgery. Adeleke says he fell behind on payments, and Credit Acceptance allegedly refused to work with him to catch up. Eventually, he defaulted on the loan.
Other borrowers who spoke at the press conference Wednesday said they were bombarded with calls from debt collectors after they fell behind on their loan payments.
It damaged my credit horribly, says Frank Mello, another Credit Acceptance customer, whose car was ultimately repossessed.
Negotiate With Your Lender
Depending on your situation, getting out of your car loan may be overkill. Call and speak with your lender about your situation and see if you can make a deal.
For example, if your financial challenges are temporary, you may be able to negotiate a forbearance, which pauses your payments for a short period. Your lender may also offer to modify your monthly payment amount to make them more affordable until you can get back on your feet financially.
Each lender has its own policies for people experiencing financial hardship, so contact your lender to see which options are available.
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Applying For A Car Loan With Bad Credit
Even if you have bad credit, you have several auto financing options to choose from you just need to find the right lender for your situation.
There are four types of lenders you can reach out to, including:
- Online lenders: Online lenders are convenient because you can find out whether you have been approved for a new loan within minutes. These lenders may also provide you with a lower interest rate since they have lower overhead costs. Online lenders are also more likely to offer preapproval so you can get an idea of your loan payment and interest rate before you make a purchase.
- Banks: Many national and local banks offer car loans. However, some banks may only allow you to get a loan through dealer-arranged financing.
- : Most credit unions offer car loans with low interest rates. You may be able to apply for a car loan directly or through a dealership. The only downside is that you may have to be a member of the credit union to qualify for its offerings.
- Car dealerships: Many dealerships offer their own financing options for car buyers. And if they dont, others will shop around for you through dealer-arranged financing.
I Had A Car Loan Through Them For 10
I had a car loan through them for 10 months was really nice when I called them until my vehicle was totaled then kept changing payoff amount and told me one price so sent a money order in and they called and told me that I was $1.14. Short so I argued that I was told to only send the amount that was on moneyorder so they said instead of being. Paid off that my loan would be considered as a settlement instead so when I just checked my credit score shows I still owe $27.00. So will be calling them back on that matter but I made my car payments on-time every month. I will never get a car loan through them ever again and they have high interest rates of 20.5%
Date of experience:August 09, 2018
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How To Avoid Going Upside Down On A Car Loan
Being upside down on a car loan occurs when you owe more than the car is worth. It’s also called being underwater or having negative equity.
If you’re upside down on your car loan and sell it, refinance it or voluntarily surrender it, you may need to pay the lender to make up the difference between the car’s value and the outstanding loan amount. If you’re already struggling with your payments, this payment can make your situation much worse.
There may not be much you can do about being underwater on a car loan if you’re already there. But here are a few ways you can avoid it:
- Make a large down payment. Most cars depreciate over timenew cars tend to depreciate rapidly during the first year. If you don’t make a down payment or put down just a little, your vehicle could depreciate faster than you’re able to pay down the loan. Making a larger down payment can help prevent negative equity.
- Opt for a shorter repayment term. A longer auto loan term can make monthly payments more affordable, but it can have an unintended consequence if you’re not careful. Even if you put money down on your loan, a longer repayment term means you’re paying down the loan more slowly, which could make it easier for depreciation to outpace your repayment.
