Credit Score and Reposession
Dear Gil,My name is C.D. I would like to buy a condo next year, and recently had my credit report pulled by Lend America. They stated to me that the one thing holding me back from a high score is the repossession of my car two years ago. The debt was paid off and I did get the car back. Is it possible to have something like that removed off my credit score? I did call Toyota Financial and they told me it was not. They stated to me that it was a marker on my credit report and it will be there for the next seven years, even though it is paid off. Is this statement true?
Hi CD,
Let me first thank you for taking the initiative to fix this situation on your credit report before you purchase your condo. Many times, these issues come up as a surprise while the property has already been found and the purchase is already in motion.
Unfortunately they are correct. The repossession will be on your credit report for some time. For most states, it will be at least 7 years as they indicated. However you may want to talk to them about HOW its being reported. If the incident is being reported in a more derogatory manner than what actually occurred, it could mean as many as 40 points lower on your credit report. In some very rare situations, some lenders will report the reposession in a more favorable fashion if you were more cooperative toward the beginning of the ordeal. Since you did eventually pay off the loan, you may in a better place. But again, this is a rare occurance, so don't hold your breath.
The best proactive move to a potential reposession is to make sure that, going forward, you pay your bills on time. I wish I had better news to share. I trust that you are able to get the condo you desire.