 TITLE: How Does a Repossession Affect Your Credit? CONTENT: What Happens to Your Credit Score After a Repossession?\n-------------------------------------------------------\nA repossession will have a serious impact on your credit score for as long as it stays on your credit report—usually seven years, starting on the date the loan stopped being paid. But in addition to the repossession being noted, this process often includes the following \"dings\" to your credit:\n*   **Late payments**: For every month you miss a payment, there's a negative item on your report.\n*   **Defaults**: Entering loan default is its own negative event.\n*   **Collections**: If you are unable to pay off a deficiency balance, your account may be sent to collections, which will also be noted on your credit report and hurt your credit score.\n*   **Court judgments**: Unsuccessful collections may result in a court judgment.\nCredit scoring is complex, so it's impossible to pinpoint exactly how many points your credit score will drop in the event of a repossession. But, given the multiple hits to your credit and the fact that payment history is the single most influential factor in calculating your credit score—accounting for 35% of your FICO® Score☉ —the impact will be substantial. Each of the items listed above stays on your record for seven years, although their impact lessens as time goes by.\nDamage to your credit can make it more difficult for you to secure loans and credit going forward. That's a particular challenge if you need to replace your repossessed car with another financed vehicle. You may be able to get a car loan after a repossession, but expect to have a harder time finding a lender and be ready to pay higher interest on the loan. END