When you enter into a voluntary car repossession agreement with your lender, your credit score and report will reflect that information.
When you reinstate a car loan, it does not change derogatory marks on your credit reports that led up to the car repo.
Voluntary repossession can still leave a deficiency balance that the lender can pursue you for payment and put on your credit report.
Texas Car Repo: Whether a car repossession in Texas is voluntary or involuntary, there are certain procedures that must be followed after the bank or finance company repos a car.
Surrendering your vehicle also known as voluntary repossession to the lender does not void the car loan contract. You are still responsible for the loan and deficiency balance.
Having a repossession in your credit files may not prevent you from getting a mortgage loan but it’s best to have other positive credit to offset the repo.