Credit file after car voluntary termination

GingerLs

May to have to voluntary terminate my HP car finance as the car is no longer needed. I'm looking to sell the car and pay the settlement however I think the car is not worth the remaining balance. 

Will voluntary termination have a negative impact on my credit file? 

Grumpy_chap

Is the car on HP or PCP?
Have you definitely reached the 50% point including any balloon?  50% of total.
Are you up to date with all payments?
Is there any damage beyond expected wear & tear?
Have you obtained the settlement figure?
Have you obtained a price from WBAC?

Don't rely on "think" or guesses, start with actual numbers that allow you to make a proper informed decision.  

GingerLs

Grumpy_chap said:

Is the car on HP or PCP?
Have you definitely reached the 50% point including any balloon?  50% of total.
Are you up to date with all payments?
Is there any damage beyond expected wear & tear?
Have you obtained the settlement figure?
Have you obtained a price from WBAC?

Don't rely on "think" or guesses, start with actual numbers that allow you to make a proper informed decision.  

Car is HP as mentioned on my post. 50% has been paid. There is no damage and yes I've got a price from WBAC which is less than the settlement price.

I've looked into what you have mentioned, I am asking whether it will affect my credit file so that I can make a decision. 

Thank you though 😊

DCFC79

I don't see why it would affect your file, it would show to reflect the finance is paid off, complete or whatever words they use.

sourcrates

GingerLs said:

Will voluntary termination have a negative impact on my credit file? 

A negative impact on your credit file - no, not to my knowledge.

Your credit file is just a reflection of how you have managed your credit repayments, payments are recorded as either been on time, or late, defaulted or whatever.

A voluntary termination is not something recorded on credit files.

The debt will be shown as either settled, or closed etc, that`s it.

ItsComingRome

sourcrates said:

GingerLs said:

Will voluntary termination have a negative impact on my credit file? 

A negative impact on your credit file - no, not to my knowledge.

Your credit file is just a reflection of how you have managed your credit repayments, payments are recorded as either been on time, or late, defaulted or whatever.

A voluntary termination is not something recorded on credit files.

The debt will be shown as either settled, or closed etc, that`s it.

A VT marker can be and frequently is added to your credit report to explain why the agreement was ended early.

https://www.experian.co.uk/consumer/help-discover/discover/guides/qa.html is more generally about COIVID but does have a section on VT explaining this.

sourcrates

ItsComingRome said:

sourcrates said:

GingerLs said:

Will voluntary termination have a negative impact on my credit file? 

A negative impact on your credit file - no, not to my knowledge.

Your credit file is just a reflection of how you have managed your credit repayments, payments are recorded as either been on time, or late, defaulted or whatever.

A voluntary termination is not something recorded on credit files.

The debt will be shown as either settled, or closed etc, that`s it.

A VT marker can be and frequently is added to your credit report to explain why the agreement was ended early.

https://www.experian.co.uk/consumer/help-discover/discover/guides/qa.html is more generally about COIVID but does have a section on VT explaining this.

OK, never had one, so didn't know that, but I assume its a standard marker, just the same, so I cannot see it having any effect one way or another.

JAS2015

I VT my car a couple of years ago. It just shows as settled on my credit files (all 3 that i check). No mention of voluntary termination 

Rosco32

It will be flagged on your credit report (Experian from my experience) that you voluntary terminated your agreement, which you are allowed to do after paying 50% of the total value. I’ve done this previously. It’s had no negative effect on my circumstances and hasn’t resulted in any declined credit applications I have made.