General Question

qualitycontrol's avatar

If my car gets repossessed, how long until my credit will be in good standing?

Asked by qualitycontrol (2565 points ) April 16th, 2009

I have no options left…due to the economy I am only working 3 days a week at my current job and can’t afford my car payment. If I allow my car to get repossessed how long until my credit will be good again? Also, will I ever be able to take out another loan as long as I live? Can credit be repaired?

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5 Answers

cwilbur's avatar

You’re better off calling the lender and seeing if there is anything you can do. They don’t want to repossess your car any more than you want to have it repossessed, but if you simply stop making payments, you will give them no other choice.

Negative things like repossessions and bankruptcy stay on your credit record for 7 years. Credit can be repaired, but it’s a lot less work to just avoid damaging it in the first place.

qualitycontrol's avatar

I called the bank and they told me to look for more work they won’t help me out at all. I told them I have no choice I’ve tried everything…

YARNLADY's avatar

@qualitycontrol I suggest you don’t give up with just one call to your lender. Make sure you talk to someone who can actually make a decision to help you. Most of the clerks are told to just say no, and it’s over. Make an offer to pay interest only for a couple of months, and then give them a set amount that you can actually pay. Make it clear you aren’t trying to get out of paying, just get some relief until you are fully employed.

BBSDTfamily's avatar

@qualitycontrol Your repo will stay on your credit for 7 years. Until then you will have a difficult time getting another car loan, although it can be done. You will have a very high interest rate and won’t be able to finance a very expensive car, but at least you can get back on the road once your job picks up and you are financially stable again. As far as “in good standing”, that depends on how you handle the rest of your credit from here on out… just because your repo disappears doesn’t necessarily mean you’ll be in good standing if you have other delinquincies as well.

charliecompany34's avatar

the doorbell rang in the middle of the night. “what the hell?” i said as i looked at my wife. we ran to the door; truck towed to the repo store; but today my credit is tight!

in other words, you can bounce back from repossession. just make a conscience effort to pay bills on time and cut back on the luxuries and sins for a while. repossession is a serious wake-up call—no pun intended.

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