Will my credit be affected if I can't make my first auto loan payment and I take the car back?

"I just got a car loan, but within a week of getting the loan, I was laid off.

I can't make the car payment anymore. Will it still hurt my credit if I just take the car back?"

“Yes, it will definitely affect your credit. Just because the repo man didn’t come get the vehicle doesn’t mean you won’t be impacted.
What you want to do now is a “”voluntary repossession.””
Once you return the car, the lender will sell it and put the proceeds toward the loan balance. You’re on the hook to pay the rest.
Instead of doing a voluntary repo, you can also contact your lender and discuss your situation. You might be surprised by how willing they are to help you.”
Eric Schad
Answered on May 21, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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