My auto finance company repossessed my vehicle. I want to prevent the repossession from hitting my credit report or minimize its effect on my future financial outlook. How should I proceed to rectify the situation? I am not married to getting the vehicle back.
Honestly, I do not know of any foolproof way to prevent this repossession from appearing on your credit report. In fact, I would be very surprised if this account does not appear on your credit report. You may be able to mitigate the impact of this repossession by contacting the finance company and offering to repay the remaining balance on the loan in return for their not reporting the account to the credit bureaus. The company will probably ask you to bring the loan current, take the car back, and stay current on the loan going forward. Even if you do those things, I still think it more likely than not that the lender will report the repo to the credit bureaus.
You can expect this account to remain on your credit report for seven years from the date of the repossession, so you will probably be dealing with credit problems for some time to come. You may be able to balance the negative impact of the repossession by keeping all of your other accounts current. However, even if all of your other accounts have a perfect payment history, a repossession would still hurt your credit score. Luckily, the more time that passes from the date of the repossession, the less the repo will affect your credit score, so as time passes, you should see your credit score improve.
For more information about credit, credit scoring, and credit reports, I encourage you to visit the Bills.com Credit Resources page, available at http://www.bills.com/credit-solutions/
I hope this information helps you Find. Learn. Save.