Auto Repossession Credit
A repossession on your credit report is a very severe mark. It will cause you to pay outrageous interest rates and big down payments.
This mark will make it difficult to be approved for any new lines of credit. Additionally, it will remain on your report for seven years.
Let us explain how the repossession procedure works. It is possible for you to remove this mark from your credit report.
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.
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, wait to see if you are sued for any damages or loss by the lender. We also suggest you wait until the car is re-sold.
Then send a dispute letter to the bureaus to dispute the repossession on your report.
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.
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 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.
Tags: how to repair credit, credit report repair services, credit repair information
