How long does a pension remain to your credit?
A repossession can sit on your credit reports for many years and even impact your ability to get another car loan for a period of time.
Resume your credit reports
A vehicle repossession on your credit reports for up to seven years and can be devastating to your credit reports. During the first year after the repo, the risk lenders the same may not be willing to approve you for a car loan.
Repossession is usually the result of a default on a car loan, which is usually due to missed payments. Some lenders may even begin the repossession process once you are one day behind on your car payment. Missed and late payments also stay on your credit reports for up to seven years.
Continuation of repossession
However, credit reports are healing. Over time, the negative impact of repossession decreases. After 12 months, you have a better chance of qualifying for a car loan if you’ve avoided any other major negative marks on your credit reports after the repo.
Since repossession lowers your credit score, it can be more difficult to get a car loan. You may need to research other loan options than what you are used to or work for build your credit before getting another car loan.
If you are about to be repossessed, speak to your auto lender immediately. If you haven’t missed any car payments yet, you have a greater advantage because you can try a loan deferral, which suspends your payments for a limited period (usually up to three months).
Can I remove a pension from my credit reports?
If you want to delete something from your credit reports, you almost always have to put it there by mistake. If you reported a repo that did not happen, contact the credit bureau reporting the repossession and the creditor who mistakenly reported it.
Remove an error from your credit report is done through litigation. The three major credit bureaus allow online disputes. The credit bureau has 30 days to investigate and may ask you to provide proof that the reporting action is incorrect. In the case of a vehicle repo that never took place, this could mean presenting proof that you are up to date on the loan and / or still have possession of the vehicle.
Errors can happen on credit reports, and it’s more common than you might have guessed. According to a Consumer Reports survey, about a third (or 34%) of Americans have at least one error on their credit report.
If repossessing the vehicle isn’t a mistake, it’s going to stick around for a while. However, it’s always a good idea to comb through your credit reports and make sure they’re accurate. Right now, you can request a copy of your credit reports every week, free of charge, until April 2022. Visit www.annualcreditreport.com to request your credit reports. After April 2022, weekly access ends and it resumes once a year, so take advantage of that access.
Get another car loan after repossession
Some dealerships don’t check your credit reports, so a recent repo would not affect your ability to qualify for a car loan. Buy here pay here resellers are known to ignore credit checks and may be a good option to explore if you have a repo that is less than 12 months old.
If your repossession is more than a year old, risk financing may be another option to check out. Subprime auto lenders are registered with special finance dealers and help borrowers with tarnished credit histories. If you can meet their requirements, your credit score is not the most important part of your car loan eligibility.
Here has Auto Express Credit, we aim to make the car buying process easier for borrowers with credit problems. Using our nationwide network of special finance dealers, we can find a dealer in your area that has bad credit credit resources. Fill out our free auto loan application form to start!