The repossession itself will also lower your credit score, making it harder to get approved for loans and credit cards in the future. Fortunately, you’ll have a chance to undo the credit report damage after a repossession, as the sale of a repossessed asset is often not enough to balance the amount you owe to a lender. In this case, your lender could possibly negotiate a new repayment plan with you so you can pay off the balance and restore your credit. If you’re able to make all your payments on time and keep your account in good standing, the repossession will eventually fall off your credit report.
Credit Repair
When your credit history is a barrier to the financial life you want, companies promising credit repair may seem like saviors. But when it comes to credit repair, taking matters into your own hands can save you thousands of dollars. Credit repair companies often charge hefty fees to find and dispute negative information on your credit reports. If you have any late credit card payments, be sure to settle those immediately. creditrepair than 30 days late will be reported to the credit bureaus, hurting your score. Their impact on your credit score worsens with every additional 30 days they remain late.
Legal Credit Repair Practices
Setting aside all jargons and technicalities, credit repair involves disputing and verifying the accuracy of all the information laid out on your credit reports. To dispute information in your credit reports is your LEGAL RIGHT as a consumer. Therefore, when you see discrepancies in your credit reports which negatively affect your standing, you can verify these issues with the credit reporting agencies, your creditors, or other collection agencies. Some credit counseling agencies offer debt management plans (DMPs), where they negotiate with creditors on your behalf and consolidate payments into one monthly installment. These plans can sometimes lower your interest rates, waive fees, extend repayment terms and help you avoid missed payments. If you’re feeling overwhelmed or unsure of your next step, consider working with a reputable credit repair company or credit counseling agency.
Engaging with a legitimate credit repair company will save you time and the headache of dealing with bad credit on your own. Working with a professional credit service can boost your confidence and help fix your credit score. Although poor credit scores are often a product of our actions, even the most responsible individuals encounter unexpected roadblocks that completely derail their once-healthy credit score.
Can A Credit Repair Company Remove Late Payments?
The rule “also prohibits debt relief providers from making misrepresentations and requires that they disclose key information that consumers need in evaluating these services,” they write. The FTC notes that they have brought about numerous law enforcement actions and lawsuits against bogus credit-related services. In 2010, the FTC also amended its Telemarketing Sales Rule to prohibit for-profit companies that sell their services over the telephone from charging an upfront fee. Alison Plaut is a personal finance writer with a sustainable MBA, passionate about helping people learn more about financial basics for wealth building and financial freedom. She has more than 17 years of writing experience, focused on real estate and mortgage, business, personal finance, and investing.