How repossession affects credit score

• Tara Baukus Mello
• On 6:00 am EST, Friday November 6, 2009

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.

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