In all, a repo could cause a 100-point drop in your credit score, Sanford says.
And late payments, collections and public records generally all stay on your credit for about seven years, according to myFICO.com.
You can stop a repo.
The key is to communicate with the lender.
Do you still have to pay if your car is repossessed?
Even if your car is repossessed and later sold at auction, you might not be off the hook. If your car sold at auction for less than what you owed on the loan, you must still pay the remaining balance to your lender. The creditor will notify you of how much you owe and you will be responsible for making payments.
How many payments do you have to miss before your car is repossessed?
In general, you can expect car repossession to occur if you miss three or more payments in a row on your auto loan. One missed payment can result in repossession, but it’s less common. A “missed payment” is considered a payment that is more than 30 days late.
What can I do to get my car back after repossession?
If you want to get your car back after repossession, you have several options:
- Redeem the car or reinstate the loan (if allowed in your state or by contract).
- Wait until the sale and attempt to bid on the car at auction.
- Negotiate with the with the creditor to try to get the car back.
Photo in the article by “Wikipedia”