Question:
I was looking at my credit report, which includes a voluntary repossession of a car that I had to give back due to some financial problems I was having, and I was wondering if I should put something in the consumer statement section explaining what happened?
Answers:
If it is valid repo you probably should not put a statement on your report. The main purpose of that is to put on why you are disputing the information. The statement has nothing to do with the credit scoring so it won't help it in that matter.
Unless you are going for a major loan such as a car or mortgage it is unlikely that it would EVER be read by a human. The other thing you have to think about is that after 7 years the Repo is gone. But if you forget to remove the statement you would still have it on there stating you had a problem. If you were apply for a loan anyone who does notice the repo would ask you to explain anyways.
You probably should. There's no guarantee that anyone will actually see it or pay attention to it, but it cannot hurt. The problem today is that most companies don't even see the credit report, just the credit score, which the consumer statement won't change. You would be better off filing a dispute with the credit reporting agency for any negative item; it is quite possible that they will remove it, because it will take too long to verify, and the FCRA requires them to respond within 30 days to disputes.
This would be beneficial if the reason for the repo was beyond your control and not likely to occur again. In most cases repos, voluntary or not, will have to paid off prior to obtaing a home loan. Lenders may also be less likely to grant new credit to someone that may appear to have a history of any financial mismanagement. Just FYI for you, thats all. It happen to me and I had trouble buying my first home, dont want it to happen you. Hope this helps and good luck to you!
Consumer statements on credit reports are absolutely USELESS. They are of no benefit whatsoever. Lenders don't care that you GAVE the car back, all they see is that big REPO on your reports. They pay ZERO attention to consumer statements - everybody as 'a story' and that's all they see.. a 'story'.
Just the fact that you had financial problems and have to give the car back is all the red flag a lender needs to see, they don't really care about the reasons.
was called by carmax to go to an interview for sales person, but denied it. Now a Nissan
I would definitely advise against including a statement on your credit report. In general, no one ever actually reads these statements; the result is that by your own admission, you were financially irresponsible. There's no real benefit, whether the repo was voluntary/involuntary. And what about once the repo is removed? That statement may still be included on your credit report.
If a situation arises where a statement is warranted, the lender will ask you about it directly; that's your time to provide any details you feel are relevant.
This article contents is post by this website user, HiAnswer.com doesn't promise its accuracy.
More Questions & Answers...