North Carolina Toyota is Talking to Drivers About Repossessions

Jun 26, 2013

Have you fallen behind on your car payments or faced repossession? North Carolina Toyota is helping drivers understand repossessions and how a consumer’s credit is affected.

What is a Repossession?

Repossession is when your car’s lender seizes your vehicle. A repossession can occur as soon as you default on your payment, or it can happen after a certain time period has gone by. Your creditor’s specific terms for repossession are spelled out in your contract. Repossession can also occur if you fail to maintain insurance on the vehicle. After your car has been seized, your lender may try to resell the car or keep it to compensate for your debt. In some instances, you may try to buy it back from the creditor, but you are required to pay whatever you have past due and repossession expenses.

How Does Repossession Affect Your Credit?

Repossession will be reflected in your credit history for a period of 7 years. It is important to remember that 7 years begins at the first date of delinquency. If you can’t make your payment after delinquency and before repossession, your credit will show a repossession from the month that the car was charged off or repossessed by the bank; your 7 year period again at that time. As long as delinquencies and repossessions and are on your credit, your credit score is negatively impacted for that time.

Life After Repossession

It is important to get started right away on rebuilding your credit.