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How Long Does a Repossession Stay On Your Credit Report?
How Long Does a Repossession Stay On Your Credit Report?
Many potential home buyers would like to know. They have a car repo and have concerns about getting approved for a mortgage.
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This discussion was modified 2 years ago by
Eric Jeanette.
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This discussion was modified 2 years ago by
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4 Replies
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It will appear on the credit report for 7 years from the date of default, this would be the first delinquency that caused the account to go into default (leading to the repossession).
If there is a deficit balance and it is not paid, it can be sold to a third party collection agency who will then add an additional negative tradeline to the credit report. This collection can only remain on the credit report for 7 years from the date of the the original delinquency and is NOT based on when the collection agency purchased the debt.
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thank you for the explanation Ivory
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Thank You Eric
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A repossession typically stays on your credit report for seven years from the date of the first missed payment that led to the repossession. This is considered a derogatory mark and can negatively impact your credit score.
However, there are steps you can take to rebuild your credit over time:
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Make Payments on Time: Ensure all your current bills and debts are paid on time.
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Reduce Debt: Pay down existing debts to lower your credit utilization ratio.
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Avoid New Debt: Try not to take on new debt while you’re working on improving your credit.
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