Dear Driving for Dollars, When a repossession is removed from a credit report, does it impact your credit score? I have heard several things and I'm wondering what is right. -- SteveDear Steve, A repossession is removed from a person's credit report seven years from the original delinquency date. When it is removed, your credit score would most likely improve at least some, assuming there aren't other issues affecting the score. Keep in mind that during the seven-year period that the repossession is on the record, it will affect the credit score, though the impact lessens as the repossession gets further in the past. In other words, it will have less of an impact in year seven than it will in year one.If you have a car question, e-mail it to us at Driving for Dollars. Read more Driving for Dollars columns and Bankrate auto stories.This week:Hyundai's cheap, sturdy cars draw buyersHow long does a repossession affect your credit score? Create a news alert for "auto" advertisementRelated Links:Video: What are your wheels worth?Hyundai's cheap, sturdy cars draw buyers6 steps to selling your carRelated Articles:Certified cars offer peace of mind6 car-shopping mistakes5 great used cars for bargain hunters
Dear Driving for Dollars, When a repossession is removed from a credit report, does it impact your credit score? I have heard several things and I'm wondering what is right. -- Steve
Dear Steve, A repossession is removed from a person's credit report seven years from the original delinquency date. When it is removed, your credit score would most likely improve at least some, assuming there aren't other issues affecting the score. Keep in mind that during the seven-year period that the repossession is on the record, it will affect the credit score, though the impact lessens as the repossession gets further in the past. In other words, it will have less of an impact in year seven than it will in year one.
If you have a car question, e-mail it to us at Driving for Dollars. Read more Driving for Dollars columns and Bankrate auto stories.
Create a news alert for "auto"
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