Remove a Car Repo From Your Credit Report
Just because you settled with a car loan company after a car repossession, that doesn’t mean that they have to remove it from your Equifax, Experian or TransUnion reports.
You can ask, but there’s no guarantee they’ll delete the information. Since you’ve already paid a settlement amount, just realize that they’re not going to be very motivated to do it — mainly because they’ve already got the money from you, so you have less negotiating power.
Also, even though you paid that car settlement, it probably won’t help your credit score. Here’s why: the car repossession is still showing up on your credit report and will be there for 7 years.
The exception to this would be if, during the course of your previous or future settlement negotiations, you got the car loan company to agree to completely delete all negative info concerning your car account. If that’s the case and your car repossession was removed, that would boost your credit score.
You can work directly with your creditors to negotiate the removal or amendment of a repossession. In exchange for resolving the debt, your creditor may be willing to remove the account or report it as “paid in full” — In the event where a repossession is being inaccurately reported on your credit reports, you can dispute it directly with the credit bureaus. If the creditor fails to verify it, it must be removed from your credit report.
Most likely, though, so far they probably just changed the “payment status” noted on your credit reports to “paid” or “satisfied” — That usually doesn’t help your credit score. The good news is that as time goes on, that repossession has less and less impact on your credit score.