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Posted in Auto Loans
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LearningTheHardWay

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I applied for an auto loan with 2 negatives on my report
When I applied for the auto loan (through my credit union of which I've been member for over 25 yrs) there were 2 collection accounts on my credit report. Both were in the process of being disputed because they were old accounts that the collection agencies "updated" to make them look recent. The credit union told me that in order to proceed with the loan, I would have to take care of the collection accounts and show proof that they had been paid off before we could proceed . Since I applied for the loan, 1 dispute has been completed and has been wiped from my credit report. The second dispute should be completed any day now and hopefully with the same result. But if for some reason they don't wipe it out (it was older than the one that got wiped) and I have to pay the account off (the amount is small but old) can the credit union "hold up" my auto loan even though an updated credit report would show that the old accounts were wiped (if that is the outcome), and my credit scores have increased which is obviously a good thing for me?? I realize that the credit union makes the decision but with 1 account being wiped off my report and hopefully the second too, do I still have to pay and show proof even though the disputes were in my favor and the old accounts were wiped ( if that is what happens with the second dispute)????? Sorry if I sound as if I'm repeating myself........I'm just not sure how to ask the question!!!!!

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The answer will depend on the credit union. I would say that once they repull your credit and the collections are gone, then they should not care how they were removed or if you actually paid them, BUT some companies have weird practices. I would say if they give you a problem about it, go to another lender. If the accounts both get removed, I absolutely would not pay them to appease the credit union, I would go to another lender.

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Awesome!!  Thank you again!! for your help.  I am a member of another credit union through my job too so if this doesn't work out then I'm going to go to them and see if I get approved.  My credit scores are good and I'm actually really happy with where they are but it just makes me want to work to make them better.  With this last one negative hopefully removed, my scores will get better too so that will help.  Thanks again and again!!  

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