Just how bad is having a repossession on reports?

[Goal_Getter]

Unfortunately, my car was repossessed on January 4th of this year. It was sold at auction but a remaining balance of 2858.00 is still owed after the sale. Just how bad is having a repossession on credit reports? How much weight does it hold? Even with the repo my scores are still in the low 600's but i think the repo is the reason for some of the credit denials I've gotten. I'm also wondering if i should perhaps setup payment arrangements with the OC to pay it off with hopes of them deleting it? Any advice?

[DaveInAZ]

"It was sold at auction but a remaining balance of 2858.00 is still owed after the sale"

- Which is why one should never let a car get repo'd, they are sold at auction, bringing the lowest possible price. Do anything to avoid a repo, such as sell it or refinance it.

"Just how bad is having a repossession on credit reports?"

- Pretty bad, it will hold your score down for years, it's a red flag to lenders that you are much more likely to default on a debt than folks with no repos/collections on their reports

"I'm also wondering if i should perhaps setup payment arrangements with the OC to pay it off with hopes of them deleting it?"

- You should setup payment arrangements because they can and are likely to to get a judgement against you and garnish wages and/or bank accounts for the money you owe them. After you have paid them in full a really good goodwill letter might get them to remove it.

Good luck!