I have bad credit as it is but im only 20. i got out to a rough start. now i have this car loan and im almost being forced to move and i wont be able to pay it anymore. my friend says do a voluntary repo, he says it will go off my credit in 7 years and ill be able to fix it from there. is he right?

sorry but in most cases, it will take 7 to 10 years to truly repair bad credit reports.

Auto finance is what I do for a living and your friend is kind of right.

Derogatory accounts do fall off your credit report after 7-years from the date of first delinquency so your really talking about 7 1/2 years.

Here is the part he left out. The lender will sell the car for less then it's worth and come after you for the balance plus all fees associated with the repossession, towing, storage, interest, reconditioning and anything else they can think of. This will amount to several thousand dollars.

When you do not pay them, they will turn your account over to a collection company and they will take you to court and get a judgment. At that point they can attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.

All of this activity will also show on your credit for 7-years and make if very hard to get any other types of loans without making massive down payments, paying huge fees and State maximum interest rates.