It happened in the darkest hour of night. Two big, burly men came quietly to the house, hooked some cables to the car, and towed it away. While aware of falling behind on payments, actually having the car repossessed was somewhat unexpected. Repossession damages one’s credit standing so now might be a good time to look into getting a different car loan with the repossession on one’s credit record. The following will offer some thoughts on what steps to take to get one back in a car as quickly as possible.

Pittsfield, MA -- (SBWire) -- 12/14/2012 --Running into unexpected financial difficulty happens to everyone at some point. Perhaps a man loses his job and can no longer afford his mortgage payments. Maybe a woman becomes gravely injured and is unable to work for a long period of time, which adversely affects her ability to pay all of her bills each month. When a person’s automobile is taken back by the lender, his financial situation looks bleaker than ever. Knowing that he certainly cannot afford to buy a car outright, he asks himself if people can get car loans with repossessions on their records. The answer is yes, but not necessarily right away. Here are some tips about how to get another car loan after a repossession.

Wait at least two years after repossession to apply for a loan. During this time, apply for new lines of credit. Doing so will illustrate an ability to be responsible with money. One form of new credit may be a secured credit card. This is a charge card for which one puts a certain amount of money in an account with the issuing lender, who gives the card holder a line of credit equal to the amount deposited. Use this card just as an unsecured card and pay the monthly payment in full and on time every month, or pay it off completely.

Other tips that can help someone obtain a new car loan with repossession on his credit record include paying off the repossession balance. After the repossession, the lender will auction off the vehicle, usually not receiving enough for it to pay off the full balance of the loan. This leaves the former auto owner with the responsibility of taking care of the left over amount. Once this is paid, send a short note (no more than 100 words) to the credit bureaus explaining why the repossession happened. Contact a few high-risk (sub-prime) lenders who approve loans for those with damaged credit reports.

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