Voluntary Repossession Stays on Credit Report

A young couple admiring a new car
Dear Experian,

How do I get a voluntary repossession off of my report? It has been three months and the credit union has since sold the car.


Dear OTT,

You cannot have a repossession removed from your credit report if the entry is accurate, whether it is voluntary or not. The fact that the loan was closed as the result of a repossession is part of the history of the account and will remain on your credit report for seven years from the original delinquency date that led to the repossession.

You May Still Owe a Balance After Repossessed Vehicle Is Sold

Also, if the bank did not sell the car for enough to cover the remaining balance, they can still hold you responsible for what is left.

If the bank chooses not to collect the remaining amount, it could be reported as income for you, and you would then have to pay taxes on that amount.

I'm sure you are well aware after this experience that not being able to repay a loan as agreed will always have consequences. I do hope that you are able to get your finances in better order before purchasing another car.

Thanks for asking.
- The "Ask Experian" team