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How Long Does a Repo Stay on Your Credit Report

how long does a repo stay on your credit report


The fact is that repossessions are not good for your credit. However, there are ways to repair the damage and get back on track. If you have been affected by a repo or other negative event, it’s important to start working on rebuilding your financial health right away.

Repossession of a vehicle has a devastating effect on your credit score.

what a car repossession does to your credit score

You might think that all that matters is the length of the repo on your credit report. But you’d be wrong. It’s actually more about how it affects your overall credit profile, and it does so in two major ways: by lowering the amount of available credit you have and by increasing your debt-to-income ratio.

Conversely, if your lender doesn’t know about your repo until after they’ve extended you a loan or line of credit (like a mortgage) with their company, then they may be hesitant to lend to you because they think there could be hidden surprises lurking in your credit report that would make them lose money on their investment if something goes wrong later down the road.

How Long Will the Repossession Stay on Your Credit Report?

How long a repo stays on your credit report depends on the type of repo. If you are responsible and make arrangements with the lender, it can fall off your credit report sooner if you can get in writing that they will remove the repossession from your credit reports after a successful payment or series of payments.

If you are irresponsible and don’t make arrangements, it can stay on your credit report for 7 years.

The impact on your score from each type of repo can vary

The impact on your score from each type of repo can vary. Some repossessions will have a larger impact than others on your credit reports and scores, depending on the circumstances surrounding it. For example:

  • If the repossession is reported to the CRA by someone other than yourself or a representative from your financial institution (such as a car dealer), it will likely be shown as “involuntary” instead of “voluntary” because you didn’t voluntarily choose for them to repossess it;
  • If you are in default and not paying off your loan, lenders may take back possession through either an involuntary or voluntary process;
  • In some cases where vehicles are repossessed due to nonpayment, they may still be insured by their owners’ insurance company until the vehicle is sold or auctioned off.

Are There Ways to Accelerate How Long It Takes for a Repo to Fall Off Your Credit Report?

There are a few things you can do to help accelerate how long a repo falls off your credit report.

  1. Make arrangements with the lender to pay off the debt, either by making monthly payments or paying in full. Getting in writing that they will remove the debt from your credit reports is very important
  2. Keep up with other accounts on your credit report, such as credit cards and loans. If you fail to pay these bills in full and on time, it can hurt your score over time.
  3. If all else fails, work with an established, trustworthy credit repair company like JMS Consulting Firm to help remove it from your credit reports.

As long as you are proactive in making arrangements with lenders and responsible with tracking your payments, repossessions may not be as damaging as they seem.

It depends on how responsible you are with your finances. If you make arrangements with the lender, and stay current on payments, there’s a good chance that this will not be as damaging to your credit score. Before you make this arrangement, YOU MUST GET IN WRITING that they will delete the account from your credit reports.

Also, be mindful of the statute of limitations for each state in the United States of America and your rights under the FDCPA. Debt collectors love to violate your rights.

Repossession can hurt your credit but there are ways to repair it.

If you’ve been facing repo and repossession issues, don’t panic. There are ways to fix your credit after being hit with this negative mark. Here are some steps you can take:

  • Re-establishing a good credit history
  • Credit repair companies can help


Repossessions can be a traumatic experience, but there are ways to minimize the damage. It’s important to understand that repossessions affect your credit score for up to seven years and even longer if the debt is unpaid. If you’re planning on buying something big in the next few years (like a home), be sure to check with your lender first before applying for a loan or refinancing an existing mortgage.

Here at JMS Consulting Firm, we have been assisting business owners and consumers nationwide with credit repair and business credit services. If you need assistance with getting a repossession off your credit reports, you can schedule your free non-obligated consultation today!

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