How to Remove Charge Offs from Your Credit Report
Charge offs negatively affect your credit and can keep you from securing a home or car loan for the 7 years that they remain on your credit report. Knowing how to remove charge offs from your credit report is essential for maintaining your buying power.
Charge offs occur when your account is 180 days or more late. At this time, the creditor will report the charge off to the credit bureaus and will usually either sell or pass the debt off to a collection agency or collections department for further attempts to collect. A charge off doesn’t mean that you have been forgiven the debt, but that the creditor has waited the time allowed by law to collect and has discharged it to another source for collection.
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Usually, the delinquent debt amount is passed from the creditor to a collection agency. You should know that it is extremely difficult to deal with a collection agency and that the collection agency cannot remove the charge off from your credit report. This must be done by the original creditor.
Therefore, when seeking to negotiate for a charge off removal, you must contact the initial creditor. Often times, a creditor will agree to remove the charge off if you agree to pay the amount off, either in a lump sum, or over a relatively short period of time. If the creditor refuses to remove the charge off item completely, you might get them to at least label it as “closed” which is less damaging to your credit.
If you can’t get the creditor to help, or you are in a dire financial crisis, you will have to decide to either not pay on the debt for the 7 year period, at which time it will be removed through statute of limitations, or seek professional help through a credit repair agency.
A reputable credit repair company can obtain much better results from creditors because they have the experience and legal knowledge to use as leverage. When it comes to maintaining or restoring your good credit, it’s worth the small cost to employ the assistance of a good credit repair agency which can save you thousands of dollars in the future.
