Vehicle repossession is more than just a bad event as there are consequences that can linger for years after the fact
At Auto Credit Express, we get questions from applicants with bad credit asking how a past vehicle repossession will affect their ability to buy another car. But in order to answer the question accurately, we need to ask a few more questions. Here they are:
How long ago was it?
A vehicle repossession will remain on a credit report for seven years. The further back in time that it happened, the less it will impact credit scores. More importantly, most subprime lenders won't consider an applicant with a repossession on their credit report until after a year has passed.
How many repossessions have you had?
One repossession is bad enough, but having multiple repossessions can decrease the chances of getting approved for a car loan exponentially. In fact, even most subprime lenders will automatically reject an application if more than one repossession appears in the borrower's credit file.
In this instance, most consumers must wait until all but one of the repossessions falls off their credit file.
Are your credit reports accurate?
Even though, in theory, repossessions should only appear in credit reports for seven years, this isn't always the case. In some instances, repossessions remain on credit reports for more than seven years. When this happens, this information has to be disputed with the credit reporting agencies in order to have it removed.
Something else to consider: many banks keep internal records for more than seven years and will turn down an applicant involved in one of their repossessions even after the information rolls off their credit reports.
Have you applied with a previous lender?
A solid credit history with a lender can work to your advantage. In many cases lenders will consider applicants with a repossession – even with a subprime lender – if that applicant has spotless payment history with them.
The Bottom Line
Vehicle repossession is never a good thing and a black mark like this can linger on a credit report for seven years or longer. Multiple repossessions are even worse and, for the most part, consumers must wait until just one appears in their credit file. At Auto Credit Express we understand repossession and are glad to answer any further questions consumers have.
Something else that is helpful: Auto Credit Express matches applicants with car credit problems to those dealers that can offer them their best opportunities for approved car loans even with bad credit.
So if you're ready to establish your credit, you can begin now by filling out our online car loans application.