Any type of repossession can take more than 100 points off of a FICO credit rating, but everyone gets a clean slate eventually, according to Les Christie of CNN. It is possible to expedite the process of removing a repossession, but this is not an option for everyone. Also, removing a repossession from a credit report may only work as a temporary fix to long-term financial management problems.
Wait It Out
You can wait until the credit bureaus can no longer list the account. The Fair Credit Reporting Act (FCRA) allows the credit reporting bureaus to list a repossession for six months after the first major delinquency -- the missed payment leading up to the repossession -- and seven years. This option takes the longest, but the repossession causes less damage to your credit rating with each passing day. Paying other debts on time and reducing the balances on them may negate the damage of the repossession within months.
Dispute It
You can dispute any account listed on your credit report under FCRA. Even if you legitimately defaulted on payments for the property, the lender must be able to verify the account to report it to credit bureaus. However, you have a better chance of removing the repossession because of an error, such as the federal credit reporting time limit expiring. To dispute the account, run your credit histories from the major bureaus for free via AnnualCreditReport. Write a letter to the bureaus stating why you dispute the repossession and provide evidence, such as a copy of your credit report showing that the account is older than 7 1/2 years. Send the letter by certified mail to have a record of the bureau receiving your complaint, because you may have to sue the credit bureaus to remove an erroneous listing.
Pay for Deletion
Include a provision about how the lender will report the repossession when negotiating to pay off the repossession. You want either a deletion or the company to report the account as "pays as agreed." Attaching a letter of "conditional endorsement" stating the terms of the agreement when you send a check to the creditor works more often than negotiating the reporting status at the start of talks with the creditor, according to CreditNet. You may need a lawyer to enforce the conditional endorsement. The creditor can always reject the agreement and attempt collection through the courts.
Tip
In the future, contact your lender when you think you may miss a payment. Lenders may offer to change the terms of your contract, such as pushing back your payment due date. Going to court and repossessing property entails expenses and time lenders usually want to avoid, and talking about problems early displays responsibility to the creditor.
I got flagged for a late payment on my credit report, I had bankruptcy chapter 7 discharged January 2020, I had 11 open account with all exceptional credit history which decreased my credit score to 515. Since then I’ve been looking for a way to rebuild my credit. I asked a question on my Fico forum on how to rebuild my credit history a member referred me to ROOTKITS CREDIT SPECIALIST and told me how they helped his family after 5 years of bad credit report. I decided to give them a shot on 1st of November 2021 and explained my situation to them. They promised to fix my credit report, but I’ll recommend their service if job is done, 3rd of November I got a text from them to confirm my new credit history. my score has been raised to 811 excellent score across the 3 credit bureaus. Late payment, bankruptcy have been deleted. I decided to wait after 7days to confirm if it’s a permanent hack. I now have a new credit history. I sincerely recommend them to anyone who has similar issues. Email them on: rootkitscreditspecialist@gmail.com Or CALL +1 760 474 3440.
ReplyDelete