However, making payments every month can help to improve your credit score over time. This is because it shows that you are still willing and able to pay your debts, even though you have experienced a setback.
If you are concerned about the impact of a repossession on your credit, you should talk to a credit counselor or financial advisor. They can help you to create a plan to improve your credit score and get back on track financially.
Here are some additional things to keep in mind if you have a repossessed car:
* You may be able to negotiate with the lender to have the repossession removed from your credit report. This is more likely to be successful if you have made all of your payments on time and in full.
* You can also dispute the repossession with the credit bureaus. This is a more time-consuming process, but it may be successful if there are any inaccuracies in the reporting of the repossession.
* A repossession can stay on your credit report for up to seven years. However, the impact of a repossession will lessen over time, as other positive information is added to your credit report.
