When your car gets repossessed do you get belongings that are in and what does it to credit?

When your car gets repossessed, the lender (typically a bank or credit union) takes possession of the vehicle because you have failed to make the required payments. The lender has the legal right to repossess the car once you are in default, which is usually after you have missed a certain number of payments.

What happens to your belongings in a repossession?

When your car is repossessed, the lender typically has the right to take possession of any personal belongings that are in the car at the time of repossession. This may include items such as:

* Clothing

* Electronics

* Jewelry

* Furniture

* Toys

* Tools

The lender is not required to return these items to you, and you may have to pay a storage fee or other charges to get them back.

How does repossession affect your credit?

Repossession can have a significant negative impact on your credit score. A repossession will remain on your credit report for seven years, and it can make it difficult to obtain credit in the future.

In addition to the negative impact on your credit score, repossession can also lead to other financial problems, such as:

* Difficulty obtaining employment

* Increased insurance premiums

* Higher interest rates on loans

* Difficulty renting or buying a home

If you are facing repossession, it is important to take action immediately to protect your credit and your finances. You should contact your lender and try to work out a payment plan. If you are unable to reach an agreement with your lender, you may want to consider filing for bankruptcy.

Repossession is a serious matter, but it is not the end of the world. By taking action to protect your credit and your finances, you can minimize the damage and get back on your feet.