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.
It will remain on your report for seven years. Additionally it will make it difficult to be approved for any new lines of credit.
However you can remove this mark from your credit report. First let us explain 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 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; 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.
Then dispute the repossession on your report by sending a dispute letter to the bureaus.
You can hire a service to do it on your behalf or write the letter yourself. This letter must present a reason as to why the mark is incorrect.
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.
We suggest waiting until the lender receives some form of payment for the debt. This is because then the lender is much less likely to spend the time or money verifying it with the bureaus. If an item is not verified 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 summing up, repossessions are removed from credit reports every day. You do not have to feel embarrassed or pay high interest rates every time your credit is run.
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