Car repossession stays on your credit reports for up to seven years. The impact it has on your credit decreases over time, but you can’t remove a repossession unless the information is incorrectly reported. To fix this, you have to dispute the error with the reporting credit bureau(s).
How to Dispute a Repossession
If the repossession listed is inaccurate, you can dispute it with the credit bureau that lists the information. In order to remove a repo, you have to submit a dispute either electronically or in writing to the credit bureau that reported it. In the dispute letter, make sure you provide evidence that backs up your claim. If you notice other inaccurate negative marks, you can list them in your dispute letter and provide proof for those, too.
Once the credit bureau receives your dispute, they have to investigate it. They’re given 30 days to investigate and come up with a plan of action. The credit bureau then sends you a letter explaining their decision and what they plan to do, but if you don’t receive a letter, the negative mark is automatically removed from your credit reports.
Can I Get a Car Loan with a Repossession on my Credit Report?
If the repossession on your credit reports is accurate, your credit score could drop anywhere from 60 to 240 points, depending on your situation. Generally, the higher your score is, the bigger the drop. Fortunately, as time passes, the repo isn’t going to affect your credit score as much, and you can apply for financing.
If you want to improve your chances of getting approved for an auto loan after a repossession, follow these three tips:
- Pay the deficiency balance – If there’s a balance on your car loan, make sure it’s paid off as quickly as possible. Paying it off decreases the effect on your credit score.
- Let some time pass – Time is on your side when it comes to recovering from a repossession. Typically, lenders want to see that at least a year has passed since it took place before considering you for financing. During this time, you can improve your credit score by paying bills on time and reducing your credit card debt.
- Reduce risk – Subprime lenders work with buyers who are seen as being a “risk.” You can make yourself less of a risk if you properly plan ahead: have a down payment ready, pick a modest and affordable vehicle, and have a cosigner ready if possible.
Let us Help You Get Started
Once some time has passed, and you have all you need to move forward in the car buying process, let Auto Credit Express be the door to open opportunities for you. We work with an extensive network of special finance dealers that have lenders available to work with people who’ve experience delinquencies and are dealing with unique credit situations. Begin your auto financing journey with us today. Simply fill out our free and easy auto loan request form to get started now.