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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.
At that point, you STILL owe that remaining balance. And that credit report time doesn't start until AFTER you pay that remainder off, with interest. So, if it takes you four years to pay it off, you still have that repo on your record for another 5-7 years. It can make life miserable. No such thing as a voluntary repossesion, just because you gave the guy the keys means nothing. It stays on your credit report for a while unless you dispute it and have it removed. It stays on for 7 years. Usually 10 years if the lender posts it to your credit record.