How to Fix a Car Repo on Credit

A car repossession is a negative credit event that can make it difficult or impossible for a person to qualify for another automobile loan at a competitive interest rate. People with an auto repossession on their credit may face the highest interest rates available on car loans. However, there are few options available for fixing a car repossession appearing on credit reports.

Instructions

1

Visit AnnualCreditReport.com to obtain a copy of your credit report. The website offers free credit reports under the terms of the Fair Credit Reporting Act. Read the report to find the auto repossession and note the date of the repossession. Federal law allows car repossessions to remain on credit reports for seven years. There are no other options for removing it unless the information is wrong. For example, because of computer error, a spouse's repossession could appear on your credit report, even though the spouse was solely responsible for the loan.

2

Fix the repossession by requesting that the credit bureau remove it from your credit report if the repossession is more than seven years old. Follow instructions on the credit report to dispute an outdated repossession by mail, by phone or online. Also fix the repossession by pointing out that you were not responsible for the debt if this is true. Do this by filing a dispute.

3

Write a statement for placement on your credit report. This won't fix the repossession, but it does allow you to explain the repossession and help fix the damage resulting from the event. Follow instructions on the credit report for filing a statement by mail, by phone or online. File a brief statement explaining the repossession and how you've solved the financial problems that originally caused the event.