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Posted in Auto Loans
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GmJr22

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Car loan is still on my credit history
I have two collections on a car loan that is the same. One shows a zero balance saying that the car was returned and it was transferred/sold. Another says I owe a balance of over 5 thousand. Why is that and how can I clear it from my credit report.

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The account with a zero balance is probably the original account from the original lender and the account with the balance is the collection account for this account. It is normal to be double-dinged like this. How can you clear it? Probably nothing you can do with the original account, but you might have a shot at removing the collection account if you are able to pay it in full and able to get a pay for delete agreement. You may even be able to get a "pay for delete" and get a settlement for less than what is owed, but it would depend on how old the account is and if they can still legally collect on it. It would also depend on them. Throwing a bunch of money at this may not even be worth it. May be best to just let it age off your reports, but it all depends on what you can afford. Do not enter payment arrangements or plans with the debt collector, that would only drag out the dealings with them by extending the "statute of limitations" to be sued.

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