Hi all! Long story short…
I leased a Lexus back in 2018 and has sold it to Vroom later in 2019.
The vehicle has been fully paid off by Vroom and ownership was transferred.
I spoke with Lexus Rep and they confirmed that they received a check and account has been closed. It has been more than 6 month since the car was sold and I still see a lease balance showing up on my credit report (Credit Karma, Credit Wise)…
Why would it still be there and not removed? I assume since the balance amount does not change, my score does go higher than it would without it.
I hope someone has had a similar situation and may share info. I would really appreciate!
Thank you all
Have you pulled an official credit report from the 3 bureaus this year? You get to access all 3 for free once a year. I would suggest you do that and see what’s there. Those are more reliable sources of what’s on your CR. As much as I like Credit Karma, it is not always the source of 100% accurate truth.
the lease would still be on there. It would only be reported as paid off now. If not, then you can dispute it.
You get a free credit report from each of the credit reporting agencies each year. Here’s the link from the ftc.gov website that explains it: https://www.ftc.gov/faq/consumer-protection/get-my-free-credit-report. Go there and choose an agency to pull the report from. Look for your lease account–it will be on there but there should be a status line or something along those lines that indicates “paid in full”. If it doesn’t say that and the car was paid off by Vroom more than a month or two ago, you might want to go about the process of filing a credit report dispute. There may be a few months’ lead time between when an account is paid off and when it shows up on your credit report as such.
Hope this helps.
I just did this with my Tacoma and within a month TFS reported the account as closed and credit karma updated it. So please check with LFS
I agree with the above advice to check your actual credit reports and not rely on Kredit Carma, however be aware that disputing could have unintended consequences.
Rather than correcting the balance, it’s possible that the entire trade line (account) could get deleted from the target bureau, which means you would lose the positive payment history (I’m assuming it’s positive).
Having an open installment trade line with a relatively small balance compared to the original amount (total of your lease payments) is an asset from a credit scoring perspective. Once it reports as closed you will no longer have that benefit.
If you have other open installment accounts (another lease, a mortgage, etc.) with relatively low balances reporting, this is moot.
Conversely, if the trade line is reporting a monthly payment due, if you apply for new credit elsewhere the decisioning algorithm will likely count the payment toward your DTI and evaluate your capacity to repay the new obligation accordingly.
I must caution you that they do count the number of open auto loans for a lease. I almost got denied for my BOLT since my credit was showing 4 auto accounts and they said they would not approve a 5th open auto account. I had to prove I had sold the toyota
Here is the best way. Go to the credit bureau that you think has it on there, unlikely it’s all 3. Then start an online dispute. You do get a free copy when filling a dispute and they will reach out to Lexus and correct. Happened with another car for me took 10 mins to fill out the form and in 3 weeks received corrected report.
What he said.
The lease will be on there and the original amount will be shown, but it should list it as paid off/closed.
Thanks everyone! I just checked the and it looks open/active (at least on credit karma). Even though it is not showing any ‘late payments’, etc. It still has the monthly payment, the date of last payment and that it’s active.
I will go ahead and call them again and request the actual credit reports…
Let’s see what it shows
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