If my car is repossed, what will that do to my credit rating?

I have been making payments on my car for a year and a half and owe more that it was financed for. I am one payment behind and will be caught up soon. Payments of $430 a month and the fact I owe more than I financed after a year and a half is killing me. Any advise?

If my car is repossed, what will that do to my credit rating?
Owing more than a car is worth is the norm. The average 60-month loan requires 44-payments before the customer is in a equity position.





Do not let it repo. This is one of the worse things that can happen for your credit. Second only to bankruptcy. They will sell the car at auction for less than it's worth and come after you for the balance plus all fess for repossessing the car, storage fees, auction fees and lawyer fees. This will amount to several thousand dollars.





When you don't pay they will take you to court and get a judgment then they can attach bank accounts, garnish your wages (if your State allows it) and file liens on any other property you may own. Add this to the fact that all of this will show on your credit for 7-years and it will be next to impossible for you to get another car, home or personal loan without massive down payments, fees and sky high interest rates.





Avoid this at all cost.
Reply:trade it in or offer it for someone to take over payments...a repo is an I-8 only one rating is worse than that and that is an I-9 bad debt uncollectable..and whats worse when the repoman gets your car they are going to sell it and whatever they get out of that will go towards the car and you my dear will STILL OWE MONEY on the car..they will garnish your wages for the rest of the money...Repo aint a good option...just try and get someone to take over payments...
Reply:See if you can refinance at a lower interest rate which will lower your car paments and the length of your loan, which will make a huge difference. My cousin went from seven percent loan down to three percent loan and it shortened her loan time by almost two years. Do what ever it takes to keep up the car payments, you have invested a ton of money into the car by now. Also you can ask the lender to put the one payment you are behind back, you will still owe it just not right now, at the end o f the loan. Best Wishes!
Reply:Try to pay it off sooner than 1 1/2 years by paying more on the principal. It will wreck your credit if you allow it to be repossessed, as lenders will consider you risky and charge you a higher interest rate on future purchases.





Sorry, but those things happen. Alert family and friends to try to pay off a car in 3 years or less, rather than 4-5 year. Stretching out the payments may make it seem more comfortable with payments, however, as you've discovered, the value of a vehicle usually drops quickly.
Reply:Once you get caught up on your payments, exchange the car for something that you can actually afford.


DO NOT let yourself get so behind on a payment that your car is actually reposessed. It's easier to pay off your debts/month than to try and fix your credit once you start missing payments.


People do not understand just how important their credit score is. Do what you have to do, but DO NOT get behind on anymore payments!
Reply:surrender your car back to them.... call them and talk with them they may even lower the payments for you, if not surrender the car to them they will sell it at an auction and you will have to pay the shortfall if there is one.this happened my cousin and she didnt have to pay shortfall as they got good auction price for car... her rating was black listied for two years...if they take your car you will be blacklisted for five years or maybe more..