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Posted in Auto Loans
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Question By
vmonte00

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how did my unpaid auto loan appear as payed off?

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Sounds like you defaulted

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Items that are in default for about 120+ days are usually charged off.  Once they are charged off, they should also say 0 balance.  Notice that a debt is STILL an obligation even after the original company charges it off and you will likely be contacted by collection companies for this point on to collect the entire balance.  Unfortunately once an item is charged off you will never have an opportunity to bring it back to a current status.  In addition to that set of news, charged off accounts will be on your credit and part of your score for up to 7 years after your last payment, or in some states, up to 7 years after your last payment arrangement; even if that payment or payment arrangement is with a collection company 6 years after your last payment with the original creditor.

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Reply by
NunnyaBusines

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I thought I should update the statement above to say, that the balance of a charged off account only says 0 balance if the original creditor decides to SELL the debt to someone else.  But if they hold onto ownership of the account and simply ASSIGN the debt to a collection agency, the original creditor actually still OWNS the debt and will still report any unpaid portion.  It should also be said that the original creditor be the only one allowed to actually report the debt (including the balance) to the credit bureaus in this case.

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does credit score differ if i refinance

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hi,

i want to know if i refinance my auto loan ? does my credit score  get affected?

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Reply by
NunnyaBusines

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Helpful to 1 out of 1 people

Yes.  When you refinance, you are effectively closing an account and opening a new account.  So there will actually be two accounts for the same car on your credit report.  That can change your credit score drastically.  Especially if you have any late payments on the original.  The new account will be treated as if it were a seperate account changing your score because of several factors, including, but limited to, age of accounts, number of accounts on your report, and after a little time a new payment history.  The original account will show closed with a 0 balance and still report your payment history for 7 years after your last payment to them.  And any positve payment hisotry or late payments will lose weight in your score as the account gets older but is in a closed status, until it finally drops off your credit report.

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