Having a repossession on your credit report is very damaging. It is a severe mark that will cause you to pay big down payments and outrageous interest rates.
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.
However you can remove this mark from your credit report. First let us explain 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.
We suggest you wait until the car is resold to remove a repossession. Also, wait to see if the lender sues you for any damages or loss.
Then dispute the repossession on your report by sending a dispute letter to the bureaus.
In this letter you must provide an explanation as to why the mark is inaccurate. You can write this letter or hire a service to do it on your behalf.
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.
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 the bureau would find verification of a deficiency judgment.
In summary, you do not have to feel embarrassed or pay high interest rates every time your credit is run. Repossessions are removed from credit reports every day.
For a free credit consultation call 1-866-246-7311.
Or for more about repossession credit and what you should do to fix it or for tips to remove a charge off visit us.
;)
;)
