Credit Repair For Charge-offs, Debts Plus More

A charge off occurs when you fail to make a scheduled payment on a debt for a time

of about 5-6 months and then the lender gives up on trying to collect it and charges it off their books. If you have a charge off on your credit it is drastically reducing your credit rating but the question becomes whether you should attempt to pay it off or not.

When a lender charges the debt off they are essentially losing profits and they no longer try to collect the debt. However, they do not usually just give up but rather refer it to a collection agency instead, who then tries to collect it. Whenever a debt is referred to a collection agency the consumer needs to make certain that the debt is not being reported on the credit report more than once. Sometimes both the original lender and the collection agency are reporting the debt and it should only be reported one time.

A charge-off will remain on a credit file for 7 years from the date of the first delinquency. It is possible to get a "paid" charge-off removed from your credit report earlier by negotiating with the lender but an unpaid charge-off may need to stay on the report for 7 years. However, you need to consider that if you pay off an old charge-off and convert it to a "paid" charge-off the 7-year period will start again and the bad debt will remain on your credit longer.

Before you decide to pay off the old charge-off make sure that your lender agrees in writing to remove the item from your credit file. This credit repair technique is known as "pay for delete" which is a very effective credit repair solution if you're able to have great results. It is probably in your best interest to either pay off the debt completely or never because partial payments will not serve you.

If you have charge-offs on your credit report that are inaccurate or erroneous by any means you have the right to dispute these items and possibly get them removed from your credit report. The Fair Credit Reporting Act gives consumers the right to a correct and accurate report and if there are mistakes the consumer can dispute them. This includes charge-offs, collection accounts, tax liens, judgments and anything else that may be showing that isn't correct.

You have the right to handle your credit disputes yourself or you can hire a professional to assist you. There are several advantages for hiring a professional, including saving you time and effort, and being able to complete the process quicker due to the superior experience and expertise of a professional. Nevertheless, if you have the time and inclination you can definitely try it yourself.

Right after receipt of a dispute, the credit reporting agencies have 30 days in which to verify the accuracy of their reporting. Whenever they cannot verify that they are reporting fairly and truthfully then they must delete the inaccurate information from your bank account. As a result you should dispute erroneous items on your report until everything on it is completely accurate and also portraying your credit history in the best possible light.

Plenty of people suffer with credit problems but you can find a way to improve and improve your credit. Contact an experienced and reliable credit repair company now.

by: Henry Little

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