How Do I Get A Repo Off My Credit?

Although it is possible to get a repossession off your credit report, it does not happen overnight and requires effort. A car repo can greatly affect your credit score negatively but there is what you can do to raise your credit score later on. Here is everything you need to know and the first steps to take if you are asking how to get a repo off your credit.

It is equally important for you to understand how a repo affects the credit.

When one’s car is repossessed, then it is listed with the credit bureaus as a repossession. This is a form of negative mark that greatly harms your credit status because it makes a statement that you were unable to meet the agreed payment obligations of a loan. It is as damaging to a credit report as a bankruptcy or a foreclosure would be in the eyes of potential lenders.

Your credit score may be reduced by 150 to 250 points or even lower if your car was repossessed. The effects are worst immediately after it happens but it will affect your credit rating for years to come as well. A repo normally remains on your credit reports for 7 years since the occurrence of the event. However, even after the account drops off your credit reports, it will still be included in your VantageScore credit scores for another two years.

Dispute Inaccurate Information

The first thing you need to do is to get copies of the reports from the three credit reporting agencies; Equifax, Experian, and TransUnion. Read them thoroughly and challenge any fact, measurement, or event’s inaccuracy, omission, or currency about the repo. This involves improper entries in the accounts such as the account number, the payment status, or the balance.

They include the process that an individual has to follow for the credit bureau to investigate the matter and also the documents to be submitted. This might entail writing dispute letters together with copies of bills of sale or loan agreements indicating that some of the credit bureau information is not factual.

In case an investigation reveals that the information was inaccurate or incomplete the credit bureau must delete or correct it. If not, you can ask the credit reporting company to provide the incorrect items to the credit agencies with the note that they are disputed. Items that are disputed are often given less consideration in credit scoring.

Negotiate a 'Goodwill Deletion'

Many individuals manage to have a repossession removed by asking their lender to perform a goodwill deletion. You would have to describe the events that led to default, demonstrate how the problem has been handled, and kindly request your lender to remove the negative remark as a favor– goodwill adjustment.

Goodwill deletions, on the other hand, are very rare, do not in any way relate to the financial statement tests, and are completely at the option of the reporter, but they can sometimes be persuaded if you have since become current with the debt. It also does not always harm to simply dial up your lender and humbly plead with them for their mercy if you have been able to stabilize yourself financially once again. Any deletion that would be negotiated would span all the credit reports from the three credit bureaus as they obtain information from the lenders and original creditors.

Increase the Scores by Including Positive Information

As you know, you cannot get a repossession removed from your credit history overnight; therefore, the next best thing is to employ techniques that would help you to slowly start repairing your credit. The payment history with regards to the credit score formula contributes 35% while the credit history length is 15% of the total score.

Some effective strategies include:

• Continuing to make the bare minimum to ensure that they do not incur further late payments
  
• Getting an authorized user on a spouse or a family member’s long-established credit account to leverage their history
  
• New credit cards and loans, which are currently in good standing, to show creditworthiness.
  
• It is important to limit the number of credit inquiries by only applying for these accounts now and then.

Items like a repossession which are negative, take years to be removed from your credit report, so do not expect quick credit repair. However, if you make timely payments for all other accessible accounts in the future and let such behaviors outweigh the above-stated mistakes, it is possible to improve your credit scores over several years. In general, scores recover to the initial level at the seven-year mark if the negatives disappear from reports if you now show that you are financially reliable.

Ensure that Rebuilding of Credit is Your Goal

It is very stressful and disadvantageous to have your car repossessed. But there are ways to regain a good credit standing after years of hard work spent on disputing a credit report and, perhaps, living frugally for a couple of years thereafter. Understand that it will take time to achieve your goal. The key is not to make any money mistakes in the past that can be traced or have to do with the present while being accountable for the present accounts. Healthy scores on the other hand are reconstructed gradually over consistent good financial practices.

Ready to boost your credit score? Call +1 888-804-0104 now for the best credit repair services near you! Our expert team is here to help you achieve financial freedom and improve your credit. Don't wait—get started today!