Does letting a car go back to the lien-holder affect your credit even though i took no loan from bank and also what is best way give it that person?

Letting a car go back to the lien holder can have an impact on your credit, even if you did not take out a loan from a bank. This is because the lien holder may report the vehicle as a repossession to the credit bureaus, and this can negatively affect your credit score. Additionally, if you have any outstanding payments or fees associated with the vehicle, these may also be reported to the credit bureaus and further impact your credit.

To give the car back to the lien holder in the best way possible, you should follow these steps:

1. Contact the lien holder and inform them of your intention to return the vehicle.

2. Make sure you have all of the necessary documentation, such as the vehicle title, registration, and keys.

3. If you owe any outstanding payments or fees, make arrangements to pay these off before returning the vehicle.

4. Obtain a receipt or other written documentation from the lien holder that acknowledges that you have returned the vehicle.

It's important to handle the process of returning a vehicle to the lien holder promptly and responsibly to minimize any negative impact on your credit. You may also want to consider consulting with a credit counselor or financial advisor to discuss how the situation may affect your credit and to get advice on how to improve your credit score.