Find Out How To Delete Charge-offs From Your Credit Report Today!
There is always a lot of confusion amongst consumers about what to do about charge offs on your credit profile. It really is well known that charge-offs are regarded as negative credit but just what is the best way to take care of it? Do I repay this bad debt? Should I not pay off this bad debt?
Actually the answer may confuse you as for the two questions is usually “yes”!
The term “charge-off” just refers to a debt that the financial institution was unable to collect. Often they are going to quit trying to collect the debt and give the bad debt to a collection company. Normally this makes it worse for the consumer as both the original lender and the collection company can report the poor credit. This makes 2 damaging marks on the credit for just 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 deleted from your credit report but a “paid charge off” is more likely to be removed 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 stay on your credit for another 7 years beginning from the time you paid it off. It is a catch-22 situation. You have difficulties either way.
Precisely what is the best way to handle this situation? Well prior to deciding to pay off the old debt just be sure you receive an agreement in writing from the original debt owner and any debt collectors that states that once the debt is paid they will remove it from your credit file immediately. This technique is called a “pay for delete” which is the best way to settle an old charge-off.
Many people are not aware that they have the right to dispute bad credit showing on their credit report. The Fair Credit Reporting Act states that any consumer can dispute any bad debt on his or her credit report and this includes charge-offs, collection accounts, tax liens, judgments, repossessions and even bankruptcies and foreclosures. You can dispute these things and get them deleted yourself or you can hire a professional credit repair agency to help 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 write a formal letter so that you have a paper trail. Make sure that each agency gets the same letter and make sure you keep copies with everything documented. The credit agencies will have 30 days to investigate so make sure that you keep track of the dates.
The credit agencies are required to follow up with the original lenders and any other interested parties. They are also supposed to search the public records on your accounts. Make sure that you follow up with them after the 30 days is up to make sure that they are working with you. Credit repair can take awhile but it will take even longer if you are 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 quicker and easier it may be worth your time to talk to them first to see if they can assist you.
It’s almost inevitable that you will have a credit problem or two in your life time. For more information on credit repair score check us out at our site!
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