If the car dealership pays off my car?

Question

got a new car but its in my parents name but the dealership where i got it frm paid off my car as a trade in which was an 03 honda! they told me it will bring up my score which is about a 525! so how and will this really help me cause i dnt have any credit at all now

Answer 1

okay, i hate to be the bearer of bad news. But you need to hear this... absolutely NO car dealer pays off what you owe on a trade. What happens is that they take the A.C.V. (actual cash value) and apply it to the loan... the remainder is tacked on to your new loan. Point Blank!  Now if you had "equity" in your old car (which is highly unlikely because it is rare to find cars with equity) then your car was worth more than the loan and they took the profits.

Now, the cosigning CAN help your credit if you are not late. NOT EVEN ONE DAY! It doesnt hold as much weight as if you were the sole person but it will help.

If you have more than $8,000 in unsecured debt than put it in a debt settlement program, and pay it off quicker. go to www.mydebt101.com they are certified and reliable.

Answer 2

Average credit in America is 720.

Under 620 is horrible credit.

525 means you don't pay your bills.

The car dealer can not help your credit score in any way.  It was a bit of "salesmanship" to show they cared.

Answer 3

Paid off loan......you need help with a 525

Answer 4

it really wont if its in your parents name. That thing about co-signing is a sales gimmick. It can only ruin your credit if you default

http://www.financialwealthnow.com

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Answer 5

It depends on how long you had the first loan out for, and how much the new loan is for.  It really wont make a huge impact or your score overall, because its going to go up a little from the payoff and down a little because of a new loan for a higher amount.

Answer 6

billy bad *** is exactly right!!!

Answer 7

Might help a little because you won't have the debt in your name.

But if you don't make youor payments you are hosed anyway.