How points go down? Is it considered a collection? How long does it stay on your record? If a lease, does that payoff go on your record?
Related posts:
- How will a voluntary repossession affect my credit?
- How can I remove a voluntary repossession from my credit report?
- what is the difference, if any, between repossession and surrendering my car? how does this affect my credit?
- What must you about an illegal vehicle repossession?
- How does a car repossession affect getting a home loan?
5 Comments
7 years …..it affects it just like a foreclosure. EXCEPT repos dont affect the capability of obtaining a mortgage….foreclosures do…
you can have a REPO and a collection account if you owe them money. you can probably assume that at least 100 points will drop
No matter what you do it will affect your credit.
Its as bad as an involuntary repo. It will go on your credit and it will hurt. It will stay on 7 years from the date of first delinquency. It is not a collection. It will show the full history of the account. Every late payment will show. Its gonna hurt. And they will come after you for what you owe still. They will sell the car (for way less than they should) and come after you for the difference. Have you tried deferring a payment or two? Most companies will do this, maybe with a fee involved. Also, if its this bad, maybe talk to a bankruptcy attorney about a chapter 13. I think they can help and you can keep the car. Not certain how it all works, but Id look into it before I gave the car back. It wont solve anything. Good luck and hang in there!
Auto finance is what I do for a living and bmd is correct as far as she goes.
It will hurt your score/profile bad for the next several years. You should expect at least a 100-point drop in score.
If this has not happened yet, you should avoid it at all cost. A repossession without a bankruptcy to explain it is one of the worst things that can show on your credit report.
Not only will they come after you for the difference but they will add all cost for the repossession, towing, storage, auction, reconditioning, late fees, interest, lawyers and anything else they can think of.
This could amount to several thousand dollars and if you do not pay they can take you to court, get a judgment and then 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 show on your credit for 7-years and make it very hard to get any other type of loans without making massive down payments, paying huge fees and State maximum interest rates.
Of course it’s considered a collection! And it will stay on your credit report for at least 7 years. It doesn’t matter if it’s a lease or not – if you are unable to make payments and the car is repossessed, it’s going to negatively impact your credit for many years.