How to Clear a Repo From Your Credit Score

Repossessions on your credit report can significantly lower your credit score. These negative records can remain for up to seven years. The most common repossessions are for automobiles, but other items such as motorcycles, boats, and recreational vehicles can also be repossessed. A repossession occurs whenever the owner defaults on paying the loan on an item and the lien holder chooses to seize the item.

Instructions

1

Negotiate with the lien holder to get your property back. You have 60 days before your property will be put up for sale after it's repossessed, so if you catch up on the loan within that period, you may be able to get your property back and avoid a repossession on your credit report. Ask the lien holder to agree in writing that they won't report your repossession before you pay the balance due.

2

Obtain a copy of your credit report from each of the three credit bureaus: Experian, TransUnion and Equifax. You can call and ask them to mail you a copy or obtain them from the Annual Credit Report website. Confirm that the repossession is listed on a credit report before you try to have it removed.

3

Look for inaccuracies in the information reported regarding the repossession. Items to look for are wrong dates, misreported payments and inaccurate balances. The credit bureaus are required by law to remove invalid listings from your credit report.

4

Dispute the repossession with each of the credit bureaus that lists it. If you found inaccuracies on your credit report, use these as the reasons for your dispute. Even if you don't find inaccuracies, dispute it anyway because if the lien holder doesn't verify the information within 30 days, the credit bureau will automatically remove it. Disputes can be taken over the phone or by completing dispute forms on the credit bureaus' websites.

5

Wait 30 days for your results. You'll be notified by mail if your repossession will be removed or if the information was verified.

6

Hire an attorney to represent you. There are lots of loopholes in the legal system that the average person isn't aware of. For example, an attorney may be able to point out problems with the loan, such misfiled or unsigned paperwork, or loan terms in violation of the law. In these types of cases, you may be able to take legal action to have the issues resolved.

7

Wait seven years for the repossession to drop off your credit report. If all else fails, you'll have to wait for the seven-year statute of limitations to expire on your repossession before it will be removed from your report.