If I default on my car loan, how will it affect my credit and for how long?
If you default on your car loan, the lender is likely to report the default to one or more of the major credit bureaus. The adverse report will reduce your credit score reported by the bureaus. How much the score will go down depends on several factors and is calculated by a proprietary formula.
The adverse information will remain on your file for up to seven years. Each creditor that looks at your credit report will have its own policy on how far back it reviews history and what effect it will have on its decision-making process.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
If you default on your car loan, the lender is likely to report the default to one or more of the major credit bureaus. The adverse report will reduce your credit score reported by the bureaus. How much the score will go down depends on several factors and is calculated by a proprietary formula.