Does Lemon Law Affect Your Credit?
You should know does lemon law affect your credit score, because lemon law has certain ways of affecting your credit score. There are important steps to take in order to prevent the lemon law from negatively impacting your credit score. In fact, sometimes the lemon law can help preserve or even improve your credit score.
Generally, does lemon law affect your credit depends on making all of your car payments, registration fees, and other costs on time. If you pay your payments on time, lemon law should not affect your credit score. Sometimes, lemon law can help credit.
Under the lemon law, if your vehicle is having problems under warranty, you may potentially be entitled to compensation. If the dealership is unable to repair or replace your car within a reasonable number of repair visits or days, they may be required to lemon law buyback your vehicle.
Affect of Lemon Law
After completing the buyback of your vehicle and paying you compensation, you will no longer be required to pay further payments for your lease or car purchase to the manufacturer. By not needing to make payments after completely winning your case and returning the car to the manufacturer, you may preserve or improve your credit score by not needing to make any further payments to the manufacturer.
After winning a lemon law buyback, does lemon law affect your credit by not having any more payments to make, you also have less mistakes to make in relation to your credit. However, it is very important to continue making your payments during your case, if you miss payments you can definitely hurt your credit. This can result in a lower credit score by missing payments.
Make Car Payments
If you miss payments on your car lease or financed purchased car, it can certainly hurt your credit and lower your credit. Even when you have a pending lemon law case, it is still very important that you continue making all of your car payments until your case is completely finished and you sign away the car back to the manufacturer and they no longer ask you for car payments. As long as the dealership or automobile manufacturer is asking for you to make car payments, if you miss those car payments, it can hurt your credit.
Good Credit Score
As long as you make all of your car payments on time, having a lemon law case will not negatively impact your credit score. In fact, it can help your credit score because once the manufacturer buys back and repurchases the vehicle they will generally pay you a large settlement and will no longer ask you to make car payments.
By getting that settlement compensation money, and no longer getting bills from the automobile manufacturer, this will put you in a good position to keep your credit score strong. In many situations, you may be able to use the compensation you win in order to pay for some of your other bills as well which can potentially help improve your credit score.
Always speak with an attorney in your area to get the most up to date information. In fact, it is best if you can consult with an accountant as well regarding your credit before making major transactions regarding your vehicle. However, in my many years of experience as a lemon law attorney, as long as you make all your car payments the lemon law should not hurt your credit.
The lemon law is a consumer rights law that is aimed at protecting consumers like you. So it does not make sense for them to hurt your credit score for using the lemon law. However, it is very important that you continue to make each and every car payment and pay for all your other costs associated with the vehicle on time. Missing payments or paying late can indeed hurt your credit and lower it.
Talk to our law firm today. We would love to help you with your lemon law case. Attorney Jimmy Hanaie has been a lawyer since 2013 from UC Hastings law school and has helped many individuals over the years. Call now (800) 400-5050.
There is no fee unless we win.