There is no doubt that getting your car repossessed is a tough financial and emotional situation. After all, you’re stuck without a car after spending thousands on a down payment. Typically, repossessions will stay on your credit report for a period of up to 7 years from the day the account was originally placed into collections.
How Long Does a Repossession Stay on Your Credit?
In some circumstances, you may possibly have your repossession taken off your credit report prior to the 7 year period.
While most consumers will just need to wait it out, there are only 2 ways you can attempt to remove a repossession from your credit report.
How to Remove a Repossession from Credit Report
File a Dispute
This is the most cost-effective solution of the two. If you believe that the repossession was actually an error, you can file a dispute with the 3 major credit bureaus.
Once a dispute is filed, the bureaus are legally obligated to respond within a 30 day period.
If there is no response within 0 days or the bureaus do not have the proper documentation, the repo can be taken off your credit report forever. A repossession can have a large impact on your score, so it’s best to try and get it removed as soon as possible.
Restart the Loan
The most common (and also the most expensive) method to getting a repossession removed from your credit report is by reinstating the loan. This means that you must repay all your missed payments including any fees the lender gives you.
It’s important to note though that not all lenders will allow you to reinstate a loan. Although some lenders to not partake in this practice, it is always a good thing to ask.
All in all, a repossession is a big hit to your credit score and report. Lasting for over 7 years, a repossession can affect your financial future for years to come. If you are looking to buy a new car but are in need of financing, CrediReady can help. Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!