If you have had a vehicle repossessed, that can be bad news one way or another. Not only do you no longer have that vehicle, but because the vehicle is lost when payments aren’t made that information can make a big impact on your credit score. Can you get a car loan after a repossession? How long does that information affect your credit? Keep reading to find out.
Can you get a car loan after a repossession?
Getting a car loan after a repossession can be challenging. Creditors and car dealerships look at your history of making reliable payments when they are deciding whether or not to offer you a loan. That said, you definitely can get a car loan after a repossession. By working diligently to raise your credit score, you may be able to get a loan within six months to a year from many dealerships or lending organizations.
However, if you need a car faster than that, there are other options. Some dealerships, like the Third Coast Auto Group, are able to offer immediate loans to drivers even if they have bad credit, or even repossessions on the record. The loan term may be longer, and interest rates may be higher, but a driver will be able to get back on the road, and back about their life, right away.
How long does a repossession stay on your credit score?
A repossession will remain listed on your credit score for the full seven years that records are kept. That said, it will not always have the same impact. Right after a repossession, it will have a very strong negative affect on your credit score. However, you will be able to raise your credit score even with the repossession still on it. After a few years, it may not have much of an impact if you have been making regular payments and have shown yourself reliable about paying debt.
If you are looking for no credit or poor credit auto financing in Austin TX, the Third Coast Auto Group can help you out. Apply online today or visit one of our four dealership locations in Austin, Kyle or Round Rock to get on the way to being back on the road.