Consumer Comeback Blog

Credit Score Glossary: Repossession

Repossession: When a lender takes back possession of property that was used as collateral in a transaction.

This usually happens when a borrower has fallen behind significantly on payments. For example, a creditor may repossess a person’s car if he or she misses several car payments. Similarly, a bank can repossess a person’s home if he or she falls behind on mortgage payments.