Having items repossessed will have a bad effect on your lifestyle, but you may not be aware of how much of an effect it will have on your credit rating. There will be some companies that will still remove repossession easily, but there is no way that it will be at a good rate of interest. There are many cases where the rate could be as much as three or four times the rate someone with a good record will pay.
How Repossession Comes About
The good news is that an item will not be repossessed right away but will be the final step in a process. When payments are first missed, contact will be made by way of a reminder. After that negative comments will be placed on your credit record. If a second payment is made, then the company will ramp up the volume of calls that are made. It is at this stage that there will be the risk of repossession.
Once an item has been repossessed you may think that is the end of the matter, but it is just the beginning. You have lost your item and your credit record is ruined. It also does not mean that there is no more money owed, as the sale of the item may not raise enough to cover the bill along with any costs that have been incurred. If this is not paid, the calls will begin again and these are going to be from collections agents. If it comes to the point where the bank or company takes legal action, a judgment will be visible on your credit report.
Problems to Be Faced
Your immediate problems will include:
- Loss of the item
- The need to replace the item
- A poor credit rating that will be viewed by potential future lenders.
- No access to credit
- Inability to fund future projects as well as missing out on events where the cash is not available from existing funds.
The Best Future Options
There are times when all is not lost and it will be possible to sort things out. When a car is repossessed, loan re-instatements can take place and as long as you pay the fee, the car is given back and the loan is live again.
Disputing a Repossession
If you want to have a repossession removed, the best thing to do will be to dispute it. It is important that your credit record is right as mistakes could cost you or the lenders. It is important to remember a few things however:
- Correct details cannot be removed just because you don’t want others to know.
- It is not possible to arrange for removal via a third party if the details are correct.
- Frivolous attempts to remove details will not see them removed for long.
The times when you can put in a dispute is when the banks give false or incomplete details. This is something that you can do alone, but if you are not confident enough to try, there are firms who will do the job for you. Once you decide to put in a dispute, you need to check all credit agencies and send in details of the information that is inaccurate. If you can prove that there are mistakes, the credit reporters will alter the details and your record will be accurate again. It will be possible to remove repossession easily. It may seem that it is not worth making the dispute, but when you consider the downside of having a repossession showing, you will realize that it is well worth your while.