The consequences of a car repossession for your credit and financial health are high. Knowing what your family is in for when it comes to repossession can be an excellent first step for you or anyone else struggling to make the necessary payments for their cars. A car repossession highly affects your credit score and may reflect poorly in your credit report for as long as seven years. One of the factors contributing to this negative mark is the missed payments getting to the point of redemption. Every month a payment is skipped, and there is a decrease in your credit performance in creditworthiness. Loaning contracts mean that the consequences of defaults are handled more seriously than others and including a complete retracting of the source of default. Collections can be sent to a collecting agency, in which case the effects cost as the score drops due to your mistake. Financially, losing a car can lead to more than an asset loss. Some of the costs you may have to cover include:
