How Bad Is Repossession For your Credit Report?
Since 2008, repossession worries have blighted hundreds of thousands, if not millions of Americans, but just how bad is repossession for your credit rating?
Home Property & Car Repossession And Credit
Having homes, commercial properties and assets such as vehicles seized through bank foreclosure and repossession orders is a hugely stressful experience. Worse, car repossession and credit defaults leading to home repossessions often eventuate in seized assets being sold at auction for a fraction of the cost of such assets legitimate market value. The result? Seized property auctions rarely if ever work to pay off the debts which they are designed to, and debtors are left liable for almost just as much debt as they were prior to repossession.
How To Get Repossession Off Credit Report File Entries
However, life after repossession does go on and it is important that people start making practical steps as soon as possible to rebuild their credit. First thing’s first though, how long does repossession stay on your credit report? Typically a repossession order will stay on your credit report for seven years starting from the date of original delinquency. This is the date upon which you stopped servicing the original debt in question and with this being the case, it is important to make sure that repossession orders pertaining to debts with an original dates of delinquency older than seven years have already been dutifully removed by credit bureaus.
Also, when it comes to how to get repossession off credit report file entries in advance of this seven year deadline, it is important to note that while this is not possible, creditors who you have negotiated working debt repayment schedules with, will sometimes mark loan disputes as resolved in advance of full payment. Moreover, this strategy can be particularly beneficial for people attempting to rebuild their credit after property and car repossession and credit defaults.
How Bad Is Repossession For Your Credit In The Long Term?
Whilst repossession data will stay on your credit report for seven years, the impact of a repossession on your credit file will lessen over time, especially if you are able to successfully negotiate with your creditors. In the mean time, things like secured credit cards and approaching dedicated refinancing companies whose focus is supplying debt restructuring assistance and finance to people who have been the victim of repossession orders, is a great way to start rebuilding your credit in anticipation of the seven year deadline when repossession orders will be removed from your file finally.