What is Repossession?
Repossession is the act of taking back an asset or property. This usually happens when the client was not able to pay on time. If this negative item is listed on your credit report, there is a way to rebuild and possibly delete the questionable item.
Can Repossessions Be Removed From a Credit Report?
If the repossession listed on your credit report is inaccurate or unfair, you can challenge the credit bureaus and request it be removed. Here are a couple of things you can do to eliminate it from affecting your credit score:
Negotiate with your
Your lender is also affected when they repossess. Paying your debt is still more convenient and affordable for most lenders. Reach out to them and try negotiating to see if you can pay your debt. Once you have agreed upon an agreement, make sure to have it in writing and abide by the terms agreed upon to avoid further conflict.
File a dispute with the Credit Bureaus
If the reported Repossession is not accurate, we highly suggest you dispute it with the credit bureaus rather than coordinating with the lender. In this way, you can have it rightfully removed on your account and avoid further consequences due to your questionable items on your credit report.
Two Types of Repossession
There are 2 types of repossession - voluntary and involuntary. Voluntary repossession is when you give the item leased back because you are unable to afford or pay the lender. An example is returning a leased car because an employee lost his job and can no longer afford the monthly fees. Involuntary repossession is the opposite. It's when a leased item is taken from you without your permission.
Does Voluntary Repossession
have lighter impact on my credit score?
Regardless if it's a voluntary or involuntary repossession, it will have the same impact on your credit report. The common misinterpretation is voluntary repossession because it will not affect your credit score, but that's not true. It's always best to coordinate with your lender to make arrangements rather than having the leased item repossessed.