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How to Get a Repossession Off Your Credit Report

How to Get a Repo Off Your Credit Report

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

Dispute Inaccurate Repossession InformationIf there are errors in your repossession report, you can dispute them with the credit bureaus.
Negotiate with Your LenderYou may be able to have the repo removed by settling the debt or agreeing to a payment plan.
Hire a credit repair companyHiring a credit repair company puts professionals to work on your behalf, but they will charge fees for their services
Wait It OutIf all else fails, a repossession will fall off your credit report after seven years.
3 possible ways to get a repo off your credit report

*These methods are discussed in more detail below*

Related Articles To Read:

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 EventSeverity on Credit ScoreTime Remains on Credit Report
Bankruptcy130-240 point drop7-10 years
Foreclosure85-160 point drop7 years
Repossession100+ point drop7 years
Collection Account60-110 point drop7 years from date paid
Late Payment (90+ days)60-110 point drop7 years
Maxed Out Credit Card10-45 point dropRefreshes monthly
How Bad Does a Car Repo Hurt your Credit?

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:

  1. Pay for Delete: Offer to pay the outstanding loan balance in exchange for the lender removing the repo from your credit report.
  2. 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.

Sources For This Article

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Picture of Steve Momot - Author

Steve Momot - Author

Steve, a seasoned expert in the automotive industry, formerly held a car dealer license in Florida. With extensive experience spanning across car trading and mechanical work, he founded Autohitch. His mission? To guide both buyers and sellers through the intricate maze of car purchasing, ensuring a seamless and informed experience. Outside of the automotive world, Steve has a passion for fishing and capturing the beauty of nature through photography.


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