Obviously your car is repossessed when loan is not repaid but does it affect your credit? does anyone know?

Question

Obviously your car is repossessed when loan is not repaid but does it affect your credit? does anyone know?

Answer 1

Sweet, It dramatically effects your credit and you actually owe the difference for what they sold the car for at auction and what you still owe on it.

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Answer 2

sorry to be so negative, but of course it does.

Answer 3

yes

Answer 4

Yes it effects your credit!

Answer 5

yes it does

Answer 6

Of course it does.

Anytime you pay anything past 10 days or more or fail to pay, it is reported on your credit - lowering your credit score.

Even worse, when the credit officer looks at your credit he will see that you are a dead beat and if he is doing his job right - will turn you down for a loan.

Answer 7

Yes off coarse comeon!

Answer 8

Yes, for 7 years. And if for some reason you get another car, your car insurance will be more because of the default on your credit report.

Answer 9

Surely.

Answer 10

Well.....lets look at this situation.

You borrowed money to buy a car.

You did not pay the money back.

The bank had to repo the collateral for the loan that you did not pay back.

Your credit score is a number that assigns a risk to you. In essence, your credit score establishes how risky it is to loan you money. What is the likelihood you will pay the loan back?

Now,  you have a loan that you agreed to pay back and did not pay back. That means, you are a very risky person to loan money to. If a bank loans you money there is a good chance you will not pay it back because you have done that before (car loan).

So, yes,  it will tank your credit score.