Business Guruz

A repossession on your credit report is a very severe mark. It will cause you to pay outrageous interest rates and big down payments.

A repossession will remain on your credit report for seven years. Approval for any new lines of credit will be very difficult with this mark.

Let us explain how the repossession procedure works. It is possible for you to remove this mark from your credit report.

First, your car is repossessed. Your car can be resold and, if your car is resold at a loss to the lender, you are responsible for repaying this loss. A deficiency judgment will be placed against you if you are found responsible and sued.

If you have a deficiency judgment, this will be reported on your credit as well as the repossession. Future lines of credit will be next to impossible to get if you have either one of these marks on your credit.

To remove a repossession, wait to see if you are sued for any damages or loss by the lender. We also suggest you wait until the car is re-sold.

Then send a dispute letter to the bureaus to dispute the repossession on your report.

You can hire a service to do it on your behalf or write the letter yourself. This letter must present a reason as to why the mark is incorrect.

Once the bureaus receive it they will conduct an investigation into the listing. They will contact the lender and ask them to verify that the account is; yours, the reported dates, and the balance.

We advise waiting until the lender receives some type of payment. If some form of payment has been received, the lender is much less likely to spend the time or money verifying the item with the bureaus. In addition, an item must be removed from your credit report that is not verified.

Deficiency judgment marks should be disputed as well. It is reported that the bureaus do not check public records when investigating a mark, which is where the bureau would find verification of a deficiency judgment.

In summing up, repossessions are removed from credit reports every day. You do not have to feel embarrassed or pay high interest rates every time your credit is run.

This entry was posted on Sunday, March 1st, 2009 at 1:14 am and is filed under Credit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.