A repossession on your credit report is a very severe mark. It will cause you to pay outrageous interest rates and big down payments.
It will remain on your report for seven years. Additionally it will make it difficult to be approved for any new lines of credit.
It is possible for you to remove this mark from your credit report. Following is an explanation on how the repossession procedure works.
First, your car is repossessed. Your car can be resold and, if your car is resold at a loss to the lender, you are responsible for repaying this loss. A deficiency judgment will be placed against you if you are found responsible and sued.
The lender will report the repossession on your credit and if you have a deficiency judgment it also will be reported. Having either one of these marks on your credit will make it next to impossible to get approval for future lines of credit.
To remove a repossession; we suggest you wait until the car is re-sold. Additionally wait to see if you are sued for any damages or loss by the lender.
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.
The bureaus will conduct an investigation into the listing once the letter is received. The lender will be contacted and will be asked to verify that the account is yours, the reported dates, and the balance.
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.
For a free credit consultation call 1-866-246-7311. Or for more about repossession credit report and what you should do to fix it or for tips to remove charge offs visit us.
