 TITLE: How Does Repossession Work? CONTENT: What to Do if You're in Danger of a Repossession\n------------------------------------------------\nDepending on the details of your loan agreement, you could be in danger of repossession after missing just one payment. The best course of action is to make all your payments in full and on time to avoid possible repossession.\nIn the case you do fall behind and risk repossession, here are a few things you could do in advance of losing your car:\n*   **Contact your lender.** If you do fall behind on your auto loan, reach out to the lender to discuss what options you may have. There is a chance your lender will allow you to defer your loan payments for a period of time or help you come up with another solution to allow you to keep your car. Communicating with your lender—ideally before you miss a payment—shows good faith as you try to remedy your situation.\n*   **Refinance your car loan.** If you're struggling to pay your auto loan, refinancing may help get your payment to an affordable level so you can continue to pay on time. Refinancing entails paying off your current auto loan with a new one, ideally at a lower interest rate. If approved for a new loan, refinancing could help you avoid repossession by satisfying what you owe on your existing loan and starting fresh with a new lender.\n*   **Consider a voluntary surrender.** If you're notified in advance of a repossession and can't find a way to cover your outstanding balance, consider voluntarily turning the car over to your lender. Voluntarily surrendering your car could help you avoid the stress of repossession, and may be slightly less negative on your credit report.\n*   **Know your state's law.** If you live in a state where the law requires lenders to notify owners before a repossession, you may receive a warning prior to your car being taken away. Most state laws also require lenders to follow specific processes, such as notifying you after the repossession and alerting you when they plan to sell the vehicle. It's helpful to know your state's laws to make sure your lender is following all the correct legal steps. To find more information about repossession laws in your state, check with your state's attorney general's office.\nIf you've recently had your car repossessed or expect it might happen in the future, consider getting a free copy of your credit report and FICO® Score☉ from Experian to see how the repossession has impacted your credit. END