If a repossession appears on your credit report, it could have a significant impact on your credit score. However, there is a chance that a Minnesota auto lender might be willing to work with you to get the repossession erased from your credit report. It may also be possible to get it removed without a lender’s help.
How can a lender help get rid of a repossession?
A creditor might change their mind about seizing your vehicle if you can come to terms with a new payment plan. For instance, you may be able to negotiate the ability to pay just the interest on the loan for several months or have missed payments added back to the loan. In such a scenario, a repossession may never appear on your credit report. However, if arrangements are made after it is reported to credit agencies, the lender would need to contact the credit bureaus and let them know that you are once again current on your loan.
How to eliminate a repossession without a lender’s help
If a lender engages in the wrongful repossession of a motor vehicle, you may be able to get your car back. It may also be possible to have derogatory information related to such an action removed from your credit report by contacting the credit bureaus yourself. In some cases, a repossession may appear inadvertently, and you may contact the credit agencies to challenge the accuracy of this information.
Losing your vehicle could cause a significant interruption to your life in addition to the damage it might cause to your credit score. Therefore, it is important to take whatever steps are necessary to avoid having your car, truck, or SUV seized by a lender.