How Long Does A Repossession Stay On Your Credit (And Why)?

How Long Does A Repossession Stay On Your Credit (And Why)?

Exact Asnwer: 7 years

Repossession can stay for around 7 years on your credit. The lender would take possession of the vehicle or any other asset that belongs to the burrower and this situation is known as repossession. The loan is given to the burrower after making some contact agreements.

All the burrowers should follow all the conditions and guidelines written in the contact agreements after taking a loan. If any borrower would not be able to pay back the taken money on a monthly basis, then it would call for repossession. Repossession can be a big negative impression that would stay on the credit of the borrower.


How Long Does A Repossession Stay On Your Credit?

Repossesion Stay On Your CreditTime
In years7 years
In months84 months

The repayment history of any person always makes a huge impact on the credit. After repossession, the burrower may not get eligible for any type of loan. The credit score would take many years to get built again after a repossession.

If someone qualifies for a loan after repossession, then the person would not get the loan on low interest. All the lenders check the repayment history of the person before giving any loans. The impact of repossession could not be removed before 7 years in general.

There are some ways by which the person can remove the repossession from the credit. If someone feels that the repossession is incorrectly put, then they can dispute the case with the credit bureau. People can take the help of credit reporting agencies by visiting online websites.

People should write a letter to the agencies explaining why the repossession is not correct. Everyone should attach any required documents with the letter to support their case through certified mail. Every burrower should request the agencies to mail back a signed receipt.

The Fair Credit Reporting Act gives all borrowers to raise disputes against any incorrect marks against them. If the repossession is not true or erroneous, then the burrower should follow up with the credit bureaus for removing it. All the requests or letters should be sent from certified mail.

Negotiation with the lender can help the person to remove the repossession. It’s always not essential that everyone needs to reach the credit bureaus if the lender can get convinced with some negotiations.

Why Does A Repossession Stay On Your Credit For This Long?

If the person misses multiple monthly payments, then removing the repossession from the credit would be herculean. If someone misses the monthly payment for only one month, then the person should try to negotiate with the lender.

There are many experts that may help you to remove any error from the credit and people can hire them to suggest legal ways. Credit repair lawyers are better than the other credit repair experts as credit repair lawyers have good legal and professional standards.

If everything fails, and the repossession is not able to get removed, then the person has to wait for 7 years. After 7 years, the borrower should try not to miss any single payment for increasing the credit score. Duplicate accounts can be a big problem that would decrease the credit score.

Everyone should raise disputes against the incorrect statements or charges that are not authorized by them. Identity fraud or clerical errors can also reduce the credit score of the person to a huge extent. People should try to take small loans that they can pay on a monthly basis as this would increase their credit score.

Everyone who has a credit card with a low monthly limit may see an increase in the credit score after the repossession. It’s always better to avoid the repossession mark on the credit as it may not go easily if it’s genuine.


The repossession would stay for not less than 7 years under credit rules. Everyone should pay their monthly payments to avoid the negative impact of repossession. Everyone should try to take small loans or any type of loans that they can pay on time.

People can also create new accounts to avoid the issues of credit scores in the accounts with repossession. After the repossession is removed, the person should consider taking secured credit loans. Everyone should take secured credit cards to build their credit score faster.


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