A repossession will severely impact your credit score, making it difficult to impossible to secure loans or credit in the future.
If you’ve experienced a repo, you may be wondering how to get a repo off your credit report.
Thankfully, there are a few options to get this done which I have laid out below:
How to Remove Repossession From Credit Report
| Method | Description |
|---|---|
| Dispute Inaccurate Repossession Information | If there are errors in your repossession report, you can dispute them with the credit bureaus. |
| Negotiate with Your Lender | You may be able to have the repo removed by settling the debt or agreeing to a payment plan. |
| Hire a credit repair company | Hiring a credit repair company puts professionals to work on your behalf, but they will charge fees for their services |
| Wait It Out | If all else fails, a repossession will fall off your credit report after seven years. |
*These methods are discussed in more detail below*
Table of Contents
Related Articles To Read:
- How Long Does a Voluntary Repo Stay on Your Credit
- Car Repossession Loopholes
- How to Get Your Car Back After Repossession
- How Much Are Repossession Fees
- The Complete Guide to Car Repossession
Repossession & Your Credit Report
- Repos can be voluntary or involuntary and will remain on your credit report for up to seven years from the original delinquency date.
- According to Experian, a repo can cause your score to drop by 50-150 points, depending on your credit profile.
How Bad Does a Car Repo Hurt Your Credit Score?
To put car repossession and your credit score in perspective, I created this visual below that compares how bad a repossession hurts your credit compared to other potentially negative credit events:
| Negative Credit Event | Severity on Credit Score | Time Remains on Credit Report |
|---|---|---|
| Bankruptcy | 130-240 point drop | 7-10 years |
| Foreclosure | 85-160 point drop | 7 years |
| Repossession | 100+ point drop | 7 years |
| Collection Account | 60-110 point drop | 7 years from date paid |
| Late Payment (90+ days) | 60-110 point drop | 7 years |
| Maxed Out Credit Card | 10-45 point drop | Refreshes monthly |
The table above further reinstates the importance of getting a repo removed from your credit report if at all possible!
How to Get a Repo Off Your Credit
1. Disputing Inaccurate Information
If you believe there are any errors made by the lender when they reported the repo, you can have the repossession removed from your credit reports.
To do this you have to dispute it with the three major credit bureaus: Equifax, Experian, and TransUnion. Common errors include:
- Incorrect dates
- Wrong loan amounts
- Misreported voluntary surrender as an involuntary repossession
To initiate a dispute, gather evidence supporting your claim and contact each bureau online, by phone, or by mail. The credit bureau will investigate and remove the repo if the lender cannot verify the information.
2. Negotiating with Your Lender
If the repossession is accurate, you may still be able to have it removed by negotiating with your lender. Here are two strategies:
- Pay for Delete: Offer to pay the outstanding loan balance in exchange for the lender removing the repo from your credit report.
- Goodwill Adjustment: If the repo was due to extenuating circumstances (e.g., job loss, medical emergency), write a goodwill letter explaining your situation and requesting the lender remove the negative item as an act of goodwill.
Get any agreements in writing before making payments to ensure the lender follows through.
Does a Repo show on Your Credit Report if You Get the Car Back?
Yes, if you get your car back by paying the outstanding loan, fees, and costs, the repo itself will remain on your report for 7 years.
Some lenders might be willing to remove or update the repossession entry on your credit if you have paid everything you owe, but they are under no obligation to do so.
Tip: If you work out a deal with the lender to reinstate your loan and make new payments, those payments will be reflected positively on your credit report going forward.
Rebuilding Your Credit
Whether you successfully remove the repossession or not, you should start rebuilding your credit immediately. Here are some tips:
- Pay all bills on time
- Reduce existing debt
- Avoid applying for new credit frequently
- Consider a secured credit card to establish a positive payment history
Key Takeaways
- Repossessions can significantly damage your credit score and remain on your report for seven years.
- You can remove a repo by disputing inaccurate information, negotiating with your lender, or waiting it out.
- Rebuilding your credit after a repossession is essential, focusing on timely payments and reducing debt.
