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If I get a title loan on a car and then just let them repossess it, will it affect my credit score?

Asked in Atlanta, GA · May 19, 2016
I'm trying to get a new car and the one that I have looks great on the outside and inside, but under the hood it needs to go. Can I do a title loan for as much as I can get and then just let them repo the car since I will be using the money to just go get another one? Will that destroy my credit?

Advisor answers

In a word: yes! Any repossession will remain on your credit for up to 7 years. In addition, you may end up owing more than you borrowed. If the Title Loan Company aren't able to sell the car for the full amount owed, you will be responsible for the difference. Try to get a loan and use the money to get the car repaired. This will allow you to maintain your credit and you'll have a car that works!

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