A repossession on your credit report will cause you to pay outrageous interest rates and big down payments. A repossession is a very severe mark.
A repossession will remain on your credit report for seven years. Approval for any new lines of credit will be very difficult with this mark.
It is possible for you to remove this mark from your credit report. Following is an explanation on how the repossession procedure works.
When your car is taken and then re sold if the lender takes a loss you will be responsible for repaying that. You will be sued and if you are found responsible a deficiency judgment will be placed against you.
The repossession will be reported on your credit by the lender as well as the deficiency judgment if you have one. If you have either one of these marks on your credit, future lines of credit will be next to impossible to get.
To remove a repossession, wait to see if you are sued for any damages or loss by the lender. We also suggest you wait until the car is re-sold.
You should then dispute the repossession on your report. This is done by sending a dispute letter to the bureaus.
You can write this letter or hire a service to do it on your behalf. This letter must provide an explanation as to why the mark is inaccurate.
Once the letter is received, the bureaus will conduct an investigation into the listing. The bureaus will contact the lender who will be asked to confirm that the account is yours, the balance, and the reported dates.
The lender is much less likely to spend the time or money verifying the item with the bureaus if some form of payment has been received for the debt. Therefore, we suggest waiting until payment has been made. If an item is not confirmed it must be removed from your credit report.
Rumors are that the bureaus do not check public records when investigating a mark. That is where the bureau would find confirmation of a deficiency judgment. If you have a deficiency judgment you should dispute this mark, too.
In sum repossessions are removed every day. You do not have to keep paying high interest rates or feel embarrassed every time your credit is run.
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