If you surrender your car, it looks to the financial world as if you have had a repossession, which is a huge negative on your financial record. The surrender will knock your FICO score down by at least 100 points, if not more, and will literally ruin your credit for a period of time. It can be from three to seven years. It is much better to work through a bankruptcy. If you are having trouble meeting your financial obligations, you can choose which loans you can retain, and those you wish to protect yourself from, with a Chapter 7 or Chapter 13 bankruptcy.
When You Surrender a Car, is There a Direct Effect on Your Credit?
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No Matter Your Credit Situation.
Car shoppers with a credit score under 680 will have a hard time getting a loan without a cosigner, but some bad credit car loans are available.
January 27, 2012
Loan approval is not guranteed and is subject to credit application and approval of the lender. Individual loan terms may vary.