When you take financing or lease a large item like a new car or boat, you agree to make regular payments until the amount is paid. However, if you are unable to continue making payments, your car or boat may be repossessed. In this case, the lender can take back your purchase without notice.

How Long Repossessions Stay on Your Credit Report

The repossession will be deleted from your credit report seven years from the delinquency date of the original auto loan and could have a negative impact on your score only during that time.

You can reduce the negative effect on your credit score by keeping your other credit obligations in check. Making your payments on time and keeping other credit balances low will help offset the impact of the repossessed item.

Voluntary Surrender vs. Reposession

If you return your car to the lender, the account will be reported as a “voluntary surrender” rather than a repossession. The benefit of a voluntary surrender is that it shows you are proactively working with your lender to resolve the debt and taking responsibility for your financial issues.

How Long Does It Take for a Repossession to Come off Your Credit?

July 13, 2017

Dear Experian, I am a graduate student with no income. I have a car payment that hasn't been paid in two months, and now they want to repossess it. I...

Repossession and Voluntary Surrender on Credit Report

October 22, 2014

Dear Experian, How long does a derogatory closure of an account pertaining to an auto loan affect your credit scores? - ...

Collection Accounts for Repossessed Car in Credit Report

January 15, 2014

Dear Experian, If you have had a vehicle repossessed, will it stay on your credit if the creditor keeps selling the papers to different creditors? - JNB

Lender Might Repossess Car After Non-Payment

December 4, 2013

Dear Experian, I took out a loan for a van in 2008 and lost my job shortly afterwards. I only made two payments on it. The lender never came looking...

Vehicle Repossession can Prevent Approval for Mortgage

August 20, 2013

Dear Experian, Can a vehicle repossession affect your credit bad enough to prevent you from being able to purchase a new home? - SHA

Lender May Check Credit Report After Car is Repossessed

December 5, 2012

Dear Experian, Why is my old creditor pulling my credit report? I had a car that I could not afford after being laid off. I ended up giving the car...

Impact of Having a Repossession Reinstated

September 12, 2012

Dear Experian, If you have a repossession and then a reinstatement, does the reinstatement help your credit scores? - CBN