How To Go About Removing Charge-offs

Charge offs are some of the most damaging items on a credit report. They are applied when a creditor gives up on a debt; after 180 days of delinquency and will usually remain on a credit score sheet for up to seven years. Such an item can disqualify the borrower from getting funding. This can badly crimp the probable spending pattern of the affected person who will be literally forced to pay cash for a huge expenditure. Moreover, the charge offs will also negatively affect the rate of interest charged by the lending organizations that are willing to offer the debtor a second chance.

Many people who find themselves in this situation are of the opinion that it is impossible to have the charge offs removed from their credit reports. Conversely, there are various ways that one can use to learn how to remove charge offs from your credit report without waiting for the legal duration to expire.

-By actively seeking to repair your own credit

If you fail to repair your credit charge-offs, by law they will remain on your credit report for not less than seven years. Even if you pay a charge-off it shall still remain on your report. However, once you have paid a charge off it will be much simpler to have it deleted from your report than unpaid charge off. The simplest way to remove a paid charge off is by disputing it.

-Dispute Charge offs

Every consumer or borrower has a right to dispute any negative item indicated on his or her credit report. In fact, the Fair Credit Reporting Act clearly stipulates that one can dispute charge offs, collection accounts, repossessions, judgments, foreclosures, bankruptcies, etc. the point here is that borrowers can dispute any negative item on their credit reports. Therefore, dispute your charge off.

-How do you dispute negative items on your credit report?

The first step is to approach the credit bureaus. The most efficient and best way to do this is by writing to them. In your letter, you should clearly indicate/state your intentions. Ensure that all the credit reporting agencies get a copy of the letter. It is also advisable to attach a copy of the credit report with the particular negative item highlighted or circled.

-Conducting Investigation

What is good about this step is that all you have to do is wait. Once the charge off has been disputed, the credit reporting agencies have only 30 days to conduct an investigation on the charges. The agencies usually contact the creditors by sending them an electronic notice. In the notice they ask the creditor to agree or disagree with the dispute. If they fail to validate the dispute within the 30-day time frame it is automatically deleted from the credit score sheet.

-Follow up with credit reporting bureaus

It is very crucial to do a follow up with the bureau. Mostly, credit bureaus will not delete the negative item from your report. It is, therefore, recommendable to ensure you do a follow up via phone calls or any other available means. Once everything is in place you will start to realize improvement on your credit score.