Any type of action by a creditor to regain possession of an item will affect your credit score and this includes an auto repossession. To find out how this happens and what you can expect, keep reading.
Many people believe that an auto repossession will take place after a long succession of missed loan payments. This may be true, however, what you need to know is that a creditor can repossess your vehicle after just one missed payment. When this happens, your creditor will probably make some phone calls to you and follow up with a few letters.
Your creditor may begin the process to repossess your vehicle if you do not contact him and try to work out a payment schedule or, if you have the money, bring the account current. You may be able to stop the repossession if you work with your creditor. If you are successful, you will be able to retain possession of your vehicle and keep your credit rating intact.
Your credit score can be affected for seven to ten years, depending on your state of residence, if your vehicle is repossessed. Your credit score will spiral downward if this happens.
It would be best if you contacted your creditor right away and attempted to come to an agreement of some sort. As a general rule, it is more beneficial for creditors to work with you on a payment plan than to repossess your vehicle.
It is most likely that you will be responsible for paying any towing charges, storage costs, repossession fees, and additional costs resulting from the repossession. Often, these costs can skyrocket to several hundred dollars.
Auto repossession is not a pretty thing and it is important that you understand this. If you see an auto repossession ahead and do nothing to try to turn it around, you will greatly harm your credit score as well as lose your vehicle. So, call your creditor and see if you can work out a payment plan. If successful, this will result in your keeping your vehicle and not damaging your credit rating. - 29866
Many people believe that an auto repossession will take place after a long succession of missed loan payments. This may be true, however, what you need to know is that a creditor can repossess your vehicle after just one missed payment. When this happens, your creditor will probably make some phone calls to you and follow up with a few letters.
Your creditor may begin the process to repossess your vehicle if you do not contact him and try to work out a payment schedule or, if you have the money, bring the account current. You may be able to stop the repossession if you work with your creditor. If you are successful, you will be able to retain possession of your vehicle and keep your credit rating intact.
Your credit score can be affected for seven to ten years, depending on your state of residence, if your vehicle is repossessed. Your credit score will spiral downward if this happens.
It would be best if you contacted your creditor right away and attempted to come to an agreement of some sort. As a general rule, it is more beneficial for creditors to work with you on a payment plan than to repossess your vehicle.
It is most likely that you will be responsible for paying any towing charges, storage costs, repossession fees, and additional costs resulting from the repossession. Often, these costs can skyrocket to several hundred dollars.
Auto repossession is not a pretty thing and it is important that you understand this. If you see an auto repossession ahead and do nothing to try to turn it around, you will greatly harm your credit score as well as lose your vehicle. So, call your creditor and see if you can work out a payment plan. If successful, this will result in your keeping your vehicle and not damaging your credit rating. - 29866
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