Remove Charge Off From Your Credit
A charge off can be removed by disputing the mark. This must be done directly with the credit bureaus.A dispute is your way of saying this mark is not accurate or not valid. There are two ways to file...
A dispute is your way of saying this mark is not accurate or not valid. There are two ways to file a dispute.
1. Write a dispute letter
This is done yourself. In this letter you simply identify the charged off mark and provide a reason for its inaccuracy. Reasons can include; not my account, account paid in full, item is out of date.
When the bureaus receive this letter and deem it valid they will investigate. They will contact the creditor and verify the amounts, dates, and that the account does exist and is your account.
2. Hire a professional credit repair company
With this method you tell the firm what marks you want to dispute and they do all the rest. I suggest this method if you have multiple negative listings on your credit report.
Most firms have credit attorneys on their payroll. This can make all the difference when it comes to a negative mark being removed from your credit.
Credit lawyers will have an expert understanding of credit laws. They can often use these laws and other case precedents to help remove a negative listing from your credit.
In addition a company will be able to use advanced dispute techniques such as; creditor direct intervention and escalated dispute information requests. Also if your case should require it they can go to court on your behalf.
Charge offs will remain on your credit report for 7 years unless you take action to remove it. Typically they will occur with an unsecured credit card that becomes delinquent for 6 months.
The creditor will charge off your account at the end of 6 months. This enables them to write off your debt for tax purposes. They will sell your account to another collection agency. This agency will be able to create a negative mark on your report if they are unable to recover payment.
If the agency is unable to collect they will make a negative mark on your credit report and then sell your debt to another collection agency. The process will then repeat, as you can see one delinquent account can become multiple negative marks on your credit. The number of times your debt is sold depends upon the size of the debt.
In sum, a charge off on your credit report will negatively impact your score. However you do not have to live with it for 7 years. You can dispute it and have it removed.
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