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How can a repossession with a zero balance affect a credit score and can it be removed?

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2014-09-18 00:12:51
2014-09-18 00:12:51

A repossession will significantly lower your credit score, regardless of the balance. It will take around 7 years before the repossession is removed from the credit report.

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Related Questions


Anytime a negative item is removed from your credit report, it will raise your credit score unless new collections are added to your report.


Yes, there is no difference. A repossession is a repossession.


Yes, but perhaps not as adversely as an involuntary repossession.



Yes, it's one of the worst things that you can do to your credit.


A repossession is a repossession, no matter if it is voluntary or not. Your credit will be ruined for 7 years.


It depends on how your father's death, the repossession, and the cosigners credit are corelated.


If a car is sold after repossession does the law states that it must be reported to the credit bureau as zero balance?


It will fester like a throbbing red boil for 7 years. And you can be sued for the balance due as well.


Neither is good. However, a repossession does less damage and is removed from your credit report within less time than a bankruptcy.


A repossession can drastically hurt your credit score. The repossessed account may report late payments (30, 60, 90 days late), a pad due balance, and a charge-off. A repossession can lower your credit score anywhere from 30 to 200 points depending on the other accounts reporting on your credit report.


AnswerIf the surviving spouse was not a joint borrower on the vehicle loan the repossession affect/appear on their credit report.


If it's not actually true, then you can dispute it with the reporting agency. If it is true, then you don't "get it removed." It will be removed after a certain amount of time has elapsed.


By mistake. Waste no time contacting the credit reporting companies, and demand that this entry be removed from your credit report.



The effect on your credit will depend on how the lender chooses to report it to the credit bureau. Sometimes a lender will be willing to report it 'paid as agreed' or 'settled' entry on the credit report rather than an actual repossession. If it is reported as an actual repossession or foreclosure it will be on your credit for seven years and negatively effect your rating.


Actually, it doesn't just come off your record. It will show as a repossession, but it will show as no balance due.


No you cannot remove a repossession off your credit report if your cosigner has a judgement on the repossession.


A repossession hurts your credit score whether it is voluntary or not. The creditor will report late payments, a charge off status, and a balance if one is owed. A repossession may hurt your credit score anywhere from 60 to 120 points.


No. Your credit report is a record of all transactions on reported accounts. The repossession will show in the history, but so will the redemption.


it's all the same whether you turned it in or they picked it up


No. You cannot have it removed from your credit history. If the primary borrower defaults you must pay the balance of the loan your own credit will be ruined.


It will not affect your credit if you pay off the balance when you close the account.


In many cases yes. While the repossession will negatively affect your credit rating, your record still indicates you have had credit. It is actually easier for those with bad creidt to get a loan than those with no credit. It will just cost you more in interest.


You can't just "return" a car. You can surrender it to the lienholder. This is called a voluntary repossession, and yes, it will affect your credit ... it's still a repossession, even though it was voluntary.What you could do without negatively affecting your credit is sell it or trade it in.



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