How Can a Repossession Affect My Credit Score?
Repossessions can have a severe impact on your credit score for as long as it stays on your reports, usually lasting for seven years. Your lender can report your credit account for repossession if you haven’t paid your debts for three months or more.
A repossession can cause your credit score to plummet by 100 points due to the late payments that caused the repossessions and the collection account that will likely emerge from it. It’s one of the most challenging accounts to dispute if we don’t have enough evidence to support your claims. But improving your credit score is still possible.
Can Repossessions Be Removed From My Credit?
If your lender can’t prove that your debt is accurate, substantiated, and fair, then credit bureaus can legally remove the repossession from your credit report. However, your chance to negotiate with your lender may be cut short if they’ve already repossessed your assets.
How Long Will It Take To Rebuild My Credit After Getting a Repossession?
A single repossession can take up to seven years to come off your credit report. The countdown begins from the date of your first missed payment that led to your current repossession. Keep in mind that even if your property gets repossessed, you may still owe your lender money on the contract called the “deficiency balance.”
If you don’t want to wait seven years and are thinking, ‘I want to repair my credit score,’ consider working with us at The Oasis Firm.
How We Can Help
One of the best ways to tackle repossessions is similar to handling other harmful items to fix your credit, and that’s by looking for any inaccuracies and disputing them. We will do all the legwork, while on your end, you can negotiate with your lender to streamline the process. You can settle your tax debts and have an agreement to have the account removed after.
Book an appointment with us at The Oasis Firm to resolve repossessions you may have on your credit report. We look forward to repairing credit, and empowering your financial freedom long-term!
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