Get Rid Of Charge-offs On Your Credit Report

It can be very confusing to know what to do about charge-offs and other negative credit that shows up on your credit report. Can you get charge-offs deleted and if so, what is the best way to take care of that? Should you pay off an older bad debt or leave it alone? The answer is yes. The baffling part is that yes is the answer to both questions!

If a lender is unable to collect a debt within a certain time period they will often just write it off their books as a “charge-off”. Oftentimes they will then refer it to a collection agency. The consumer needs to be wary when this happens as both the original lender and the collection agency can report the debt. This gives the consumer two negative marks on only one account.

An old charge-off will stay on your credit report for as many as 7 years. It is possible to get an old charge-off removed from your credit report but a “paid charge off” is easier to remove than an “unpaid charge-off”. However an unpaid charge-off will drop off your report after 7 years but if you pay off the bad debt it will make it current again and begin the 7-year cycle all over again and the bad debt will remain on your credit for an additional 7 years beginning from the time you paid it off. It is a catch-22 situation. You have problems either way.

The one way to get around this difficulty is to get an agreement in writing from the original lender and any collection agencies before you pay the debt that they will remove it from your credit upon satisfaction. This is called a “pay for delete” and it is the only way you can protect yourself from further problems.

Did you know that you have the right to dispute any item that is reported on your credit report? The Fair Credit Reporting Act gives consumers the right to know and dispute anything that is reported on their credit report. This includes charge-offs, tax liens, collection accounts, judgments, repossessions and even bankruptcies. You can use a professional credit repair company to assist you in doing this or you can do it yourself.

To dispute any reporting on your credit report start out by contacting the consumer reporting agencies. You can call them on the phone or contact them online but the safest way to do this is to write a formal letter. That way you will always have the record of a paper trail. Make sure each agency that is reporting the bad credit gets a copy of the same letter and make sure that you keep strict documentation of all of your efforts. The agencies have 30 days to check out your claims sobe sure you document the dates.

During that 30-day period the credit reporting agency is supposed to contact the original lender and the collection agencies with your allegations. They will also check out any public records. It is up to you to follow up with them and make sure that everything is being completed. Credit repair takes some time to finish but if you don’t follow up it can end up taking even longer.

You can do everything that is necessary to repair your credit yourself but it may be worth it to have a professional do it for you. A professional credit repair company has developed the expertise to do the job quickly and efficiently the first time.

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