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If you are unable to pay the loan installments, the finance company will repossess your vehicle or house and this will have a great negative impact on your credit score because a repossession stays on your credit record for 7 years.his is why it is important to keep in mind that how long does a repossession stay on your credit, before you plan to buy a house or a vehicle. The wise thing to do is to go for something that costs lesser than what you can afford at that time.
Repossession, whether voluntary or involuntary, will show up on your credit report for seven years. Any money owed, if not paid, could also show up on your credit report as a charge off. This could seriously affect your ability to apply for any type of credit.hdhayes60 Â· 7 years ago.he damage to your credit report will be bad, and will stay on your record for 7 years, once the collection agency gets hold of the debts, then they will also put a negative on your credit report.