Find Out How To Remove Charge-offs On Your Credit Now!

There exists quite a lot of confusion amongst consumers about what to do about charge offs on your credit report. It is actually well-known that charge-offs are regarded as negative credit but just what is the best way to take care of it? Do I pay off this bad debt? Do I not pay off this bad debt?

Actually the answer may confuse you as the answer to both questions is “yes”!

The definition of “charge-off” simply refers to a debt that the financial institution was unable to collect. More often than not they will quit trying to collect and refer the bad debt to some collection company. Typically this makes it worse for the consumer as both the original debt owner and the collection agency can report the poor credit. This will make 2 damaging marks on the credit rating for just one account.

An old charge-off could stay on ones credit report for as many as seven years. You’ll be able to get an old charge-off removed from your credit report but a “paid charge off” is more likely to be removed than an “unpaid charge-off”. Nonetheless an unpaid charge-off will drop off your report after seven years but when you pay off the bad debt it will bring it current again and begin the 7-year cycle all over again and the bad debt will stay on your credit for an additional 7 years starting from the time you paid it off. This can be a catch-22 situation. You’ve got problems in either case.

So what is the best way to handle paying off a charge-off? Well before you pay off the old debt make sure that you get an agreement in writing from both the original debt owner and any collection agencies that says that once the debt is paid they will delete it from your credit report immediately. This technique is referred to as a “pay for delete” and it is the most effective way to pay off an old charge-off.

Many people are unaware that they have the right to dispute items showing on their credit report. The Fair Credit Reporting Act states that any consumer can dispute any derogatory credit on his or her credit report and this means charge-offs, collection accounts, tax liens, judgments, repossessions and even bankruptcies and foreclosures. You can dispute these items and get them deleted yourself or you can hire a professional credit repair agency to assist you.

You can dispute items on your credit report by approaching the consumer reporting agencies that are reporting the bad credit. You can call them, write them or even contact them online, however, the best way is to compose a formal letter so that you have a paper trail. Make sure that each agency gets the same letter and make sure you retain copies with all documentation. They will have 30 days to investigate so make sure that you document the dates.

The credit score agencies are required to follow up with the original lenders and any other interested parties. They’re also required to look at the public records on your accounts. Make certain you follow up with them as soon as 30 days is up to see that they are working with you. Fixing credit can take some time but it is sure to take even longer if you’re not following up with your own requests.

While it is possible to repair your credit on your own a professional credit repair company has developed the knowledge and expertise to simplify the process. Since a professional can do it faster and easier it may be worth your time to consult with them first to see if they can assist you.

It can be highly unlikely that you will not have a credit problem or two in your lifetime. For more information on your credit repair check us out at our site!