Financing with a Charge Off on Credit Report

Erroneously reported as charge off? Not clear based on your post. Contact original lender and have them remove the error?

I never had a delinquent account so I don’t know but wouldn’t the lender repossessed the Lexus? Why would they allow you to keep the car?

(Had to look up the meaning of change off).

 

A personal loan for $80K will have a poor APR. This is assuming you have 50% in cash ready to put down on the 458. I would try and have the charge off (had to look that one up) removed somehow, but that won't be easy. You'll most likely run into an issue with paying some fly-by-night company to "remove" it only to have it pop up during a credit pull.

I would just save up the rest of the money and buy the car cash, that may be the only way. The plus side is they haven't hit their floor yet so it'll save you some $$ in the long run. Also factor in adding a warranty and setting 10K+ aside for any issues that may show up. Good luck.

 

Back 1992 ish I bought a computer through Amex, back when they were selling products. They delivered it to a suite one floor down and someone signed for it. I never got it and things got nasty. I ended up engaging a lawyer and Amex dropped it. But then they reported it as a charge off (but keeping my card active).

Fast forward to 1998 when i was buying a building with finance through US Bank. They said I would have to pay off the charge off before they could fund.

I wrote a letter and explained what happened then called the loan officer and asked them to explain why US Bank would believe a third party over their own customer of 10 years.

They funded the loan without me having to pay the charge off.

 

From what I’ve read so far, this seems like a really bad idea..
Save till you have a substantial down pmt. Be realistic with your budget.living large on credit will most likely end badly and purchase price is just the price of admission.

 

SO the charge off is real but you did pay the loan off .. if so did the bank accept less then full pay off .. if not and you did pay the loan off try to get the bank to write a letter....If they will not do that .. then the problem you have is that since the charge off is on a luxury car and you now want to buy another luxury brand car I suspect the typical exotic car lenders will not be interested,,.. However if you have a car picked out at a dealership they maybe able to get it financed you may not like the rates. I think your best bet to get the "charge off "taken off your record

 

Here's an idea, could just pay cash, then no payments or interest.

 

Lightstream usually deals with high credit scores, but they offer unsecured loans, so that may be an option, though you'll get smoked in interest rate.

 

Most lenders will look past this with a substantial down payment. How much are you looking to put down? It'll likely take 50% down to put them at ease. With loans at 4% and climbing even with "perfect" FICO's of 800+ it's smarter to put 50% down, go for a longer (84/mo) loan for the security of a low payment and just pay it off in 2 years or less. Money is becoming more expensive as the days of 0.9% loans are behind us. Put half down, invest the other half, and pay-off quick and you beat the system. Any other way and you end up in a bad position. Remember, this is not a needed vehicle, it's recreational vehicle, and as such the purchase decision needs to be easy and not a financial stretch.

 

Do you have a current home mortgage? Many banks offer sub-prime home equity loans, and you can pay it off early without any penalties. I personally do not recommend taking a loan out for a toy of any kind, instead save up and buy it with cash. Especially when considering taking out $160k on margin, the interest coupled with remaining depreciation will add up. But I guess if one is willing to pay out that kind of money to get into the car now, then so be it. I don't mind waiting....

 

Try fixtyourcreditconsulting.com those guys are great!


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I'm reading this post and all I can think about is the so called satisfied / settled charge off. Clear your records first then consider the car , it'll still be there, don't give the lenders a reason to charge you more interest on a loan.

 

I think at least in CA, it is illegal for any business to offer to remove an accurate credit report entry.


- Sam in Saratoga

 

Lexington won't do anything that you can't do yourself in an hour. Create a profile with each of the bureaus and use their online system to submit disputes.

 

If the car was paid off, then you should dispute the matter under the FCRA. You will need to dispute both to the credit agencies and the lender. It accurate reporting or reporting in a manner designed to be detrimental more so than necessary can constitute violations. Even if you end up paying cash, you should dispute.

 

A Charge-Off can (and does) exist in 2 different forms - as a debt that was eventually paid, and as a debt that was not. Yours is the former type. The fact that you eventually paid it off doesn't mean the charge-off is an invalid credit entry. Paying it off is a good thing credit-wise, but doesn't erase the charge-off.

Think of it as voluntary vs involuntary manslaughter - either way, someone's dead.

 

If the information is accurate, it stays.

 

Lenders are not required to report to all three bureaus, and in fact many do not report to all. For those that don’t report to all three, it varies from lender to lender as to which ones they do and do not report to.

Also, debt buyers and outside collection agencies are not absolutely required to report at all. The only restriction is that if they choose to report, the FCRA requires it to be accurate.

So the fact that a record is not present on one bureau in no way gives you leverage to remove it from the other two.

Also, charged off and paid in full are separate characteristics of a trade line. A trade can be paid in full post charge off, but that doesn’t change he fact that it was charged off. And that fact remains on your file.

Sorry.

 

The lenders are worried you aren’t a great credit risk... the 670 credit score supports that...

720+ is very good...lots of folks are in the 800s...

So, objectively...

Self employed
670 score
Write off
Low money down...

Not trying to burst your bubble, but don’t look to overextend yourself...

Go buy a 360, pay cash, and enjoy...