What is a Repossession?
A repossession takes place when a financial institution retrieves an object (typically a car) that was used in a transaction as collateral for the type of service provided, which is typically a loan.
In other words, the person or institution that has the right of ownership retrieves their property if the person paying for the property is insolvent.
Insolvency is never exciting, but as the economy would have it, more and more consumers are struggling to stay on top of their credit obligations.
How a Repossession affects your credit score
The most basic answer is, a repossession on your credit reports will have a terrible impact and will drop your credit score down quite a few points. Having one of these on your reports is trouble because it increases your credit risk and lowers the chance of being approved for any new type of credit. Not to mention, if it was an auto repo, then you lost your new car!
A Repossession will likely stay on your credit report for up to 7 to 10 years. The 7 years figure is referring to the repossession being listed on your credit reports and the 10 years is referring to public records. You can slowly build up your credit again, but if you are reading this then you likely do not want to sit around and wait!
Removing a Repossession by yourself
Understand that it is completely possible to remove a repo entry from your credit reports all by yourself. The probablity of you being able to do it by yourself will depend on your unique situation. If your repo is misleading, innaccurate, or unverifable then you have a decent shot of getting removed by submitting a dispute letter to each of the three bureaus.
If your repo was recent, or if it is accurate then you will have to engage the bureaus at a different angle. No one in their right mind tries to get a repo on purpose, so the circumstances that led to your car or object being retrieved will have to fuel your dispute letter. Leveraging this aspect and applying towards a consumer protection law to hopefully get the item removed is where the task becomes challenging.
In order create this type of case for yourself and apply the laws successfully you will have to bridge your gaps in the credit field and educate yourself. Although this a great thing to do, most consumers do not have the time.
A different, swifter solution
Other consumers who desired assistance in fixing their credit have turned to the trusted lead in credit report repair. Lexington Law is one of the most Renowned credit repair firms in the United States and have assisted over 500,000 clients erased negative items.
Erasing repossessions and improving credit scores is they’re style! If you would like to speak with a credit expert, simply fill in the fields in the form below and a Lexington paralegal will follow up with you for a free, no obligation credit consultation.