Repossession Credit

A repossession on your credit report will cause you to pay outrageous interest rates and big down payments. It is a very severe mark. It will make it difficult to be approved for any new loans. Additionally, it will remain on your report for seven years. It is possible for you to remove this mark. Following is an explanation on how the procedure works.

First, when your car is repossessed it can be resold. You will be responsible for repaying any loss the lender takes. If you are found responsible, you will be sued and a deficiency judgment will be placed against you.

If you have a deficiency judgment, this will be reported on your credit as well. Future unsecured loans will be next to impossible to get if you have either one of these marks. We suggest you wait until the car is resold to challenge the item. Also, wait to see if the lender sues you for any damages or loss. You should then dispute it. 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 bureaus receive it they will conduct an investigation into the listing. They will contact the lender and ask them to verify that the account is; yours, the reported dates, and the balance.

We advise waiting until the lender receives some type of payment. If some form of payment has been received, the lender is much less likely to spend the time or money verifying the item. In addition, an item must be removed from your report that is not verified. Deficiency judgment marks should be disputed as well. It is reported that the bureaus do not check public records when investigating a mark, which is where they would find verification of this.

In summary, you do not have to feel embarrassed or pay high interest rates every time your credit is run. Repossessions are removed from reports every day.