• Returning the car to the lender will result in the account being reported as a “voluntary surrender” rather than as a “repossession.” However, the difference will likely be minimal in terms of the negative effect on your credit scores. Whether you return the car yourself or a repossession company is sent to get it, you are not repaying the debt as agreed. In the end, that is what lenders look at and what hurts credit scores. The benefit to a voluntary surrender is that you are proactively working with your lender to resolve the debt. Although you are returning the car, you are taking responsibility for your financial issues and trying to work with the lender rather than forcing it to take an action nobody wants. By working with your lender, you are maintaining a more positive relationship. Because you aren’t completely burning that bridge, the lender may be willing to extend credit to you much sooner after your financial challenges are resolved.
  • Not really. The bottomline and what people look at is whether you repay the debt and in both instances the answer is no. Helping them take back the item doesnt mean diddly.

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