When you stop making payments on an auto loan, the bank might take the action of repossessing the vehicle. This can happen in two ways. You can voluntarily surrender the vehicle, or the bank can simply take it from you. In fact, in most cases they don’t even need to notify you that they’re going to take it.
When your car is repossessed, it will negatively impact your Credit score. This negative hit can be pretty significant and will probably crush your credit score. On top of that, if the bank sues you for the difference between what the car is worth and how much you owe, you could also get a judgment slapped against you. That will further hurt your credit score.
Can Repossessions Be Removed from Your Credit Report?
You have a few options when it comes to removing repossessions from your credit report. You can either attempt to remove it yourself, or you can have a professional remove the repossession.
If you’re going to get the repossession removed by yourself, there are a couple of ways you can go about it.
Try to Negotiate New Payments
Your first option is to attempt to negotiate with who gave you the loan. This is usually a bank or one of the big auto lenders that the dealerships usually go through. The goal is to negotiate a repayment plan that you can afford. In exchange you’ll want to request that they remove the repossession from your credit report.
Honestly, the most difficult part of this technique is getting ahold of the right person. That is, the person who actually has the authority to negotiate with you and have the negative entry removed from your credit report. In other words, this option is going to take some persistence. The larger the bank, the more difficult it will be to get the right person on the phone.
Lastly, make sure that you get everything in writing before finalizing the renegotiation terms.
Dispute the Repossession on Your Credit Report
Another option you have is to use an advanced method to dispute the repossession with the three credit bureaus. The key to success in disputing negative items is looking over the entry extremely closely in order to find any inaccurate information. Here are a couple of things you should be checking.
- All dates
- Payment terms
- Account numbers
- Anything else that’s inaccurate
Make sure that you dispute the entry with all three credit bureaus. They’ll have 30 days to verify that their information is accurate. If it’s inaccurate, they’ll need to either correct it or remove the entry.
Have a Professional Remove the Repossession
If you don’t feel like dealing with the lender, finding the right person, and dealing with negotiations, you can have a professional attempt to remove the repossession.. For this I suggest you check out Lexington Law Credit Repair. They’ll take care of you. Give them a call at 1-844-764-9809 or Check out their website.
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