Impact of Having a Repossession Reinstated

A young couple admiring a new car
Dear Experian,

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


Dear CBN,

A credit report shows the entire history of an account. It will show that the car was repossessed, that the lender has agreed to continue the loan, and that you have brought the account current.

Rehabilitating the loan and making on-time payments likely will be viewed more positively by creditors than an outstanding repossession. There might not be an immediate improvement in your credit scores, but the longer your payments continue to be made on time, the more your credit scores will benefit.

The repossession itself will be removed seven years from the original delinquency date - the first late payment that led to the repossession. In the meantime, keep making all your payments on time in order to show future lenders that you are getting your credit back on track.

Thanks for asking.
- The "Ask Experian" team