A voluntary repossession is essentially the same thing as an..
Added 2021-11-14 17:09:01 +0000 UTCA voluntary repossession is essentially the same thing as an involuntary one: a defaulted loan. Either one will drag down your credit scores, but there is a slight difference: A voluntary surrender shows up differently on your credit reports, and that might matter to somebody who reads through your report manually.3
If anybody tells you that a voluntary repossession won’t hurt your credit, evaluate what biases that person has. Will they benefit financially (by selling you a product or service, for example) if you decide to take your car back? If so, get advice elsewhere.
For example, a loan officer at a small credit union might read through each item on your report. Computerized scoring models, on the other hand, probably won’t treat voluntary surrenders any differently.
