A car repossession stays on your credit reports for up to seven years beginning the day the account was originally reported as delinquent. In some circumstances, you can remove the repo from your credit reports before the seven years is up.
Removing a Repo from Your Credit Report
In certain instances, a repossession can be removed from your credit reports before the seven-year mark runs its course. While most people need to wait, there are two things you can do to attempt to have the repo removed from your credit reports:
- Reinstate the loan – A common way to get your car back after a repo is by reinstating the loan. If the lender allows this, you must make up all missed payments and pay any penalties or fees. Before you’ve reinstated the loan, you should contact your lender to discuss if they'll remove the repossession once you've paid up. Not all lenders are willing to do this, but it doesn't hurt to ask.
- File a dispute – If you feel that the repossession was entered as a mistake, you can file a dispute with any of the three major credit bureaus (Equifax, TransUnion, and Experian). The credit bureaus are obligated to investigate. If a credit bureau doesn’t respond to the dispute within 30 days or can't verify the repo, the repossession can be removed from your report.
Another option to get your vehicle back following a repossession is redemption. If you choose to redeem the car, you typically won’t be able to remove the repo from your credit reports. In order to redeem your vehicle, you’ll need to pay the remaining loan balance and any repossession fees – before the lender sells the vehicle.
The Bottom Line
A repossession causes your credit score to take a big hit, but it doesn't mean you can't improve your credit situation before it's removed from your credit reports. Having a repo on your credit reports can make it harder to finance a car in the future, but Auto Credit Express may be able to help.
We work with a nationwide network of special financing car dealerships that have the tools and experience needed to get people dealing with bad credit into another vehicle. See what we can do for you today by completing our free and easy car loan request form.