subject: How to remove a Charge Off From Your Credit Report [print this page] How to remove a Charge Off From Your Credit Report
In the aftermath of recession and also the current recession, having a charge off on your credit report can seriously impair your odds of securing the much coveted mortgage loan or car loan (despite the fact that these two are mortgaged loans) or any other loan. Any term lender will think twice before agreeing to satisfy your credit request in case your credit history shows a charge-off.
Have you been confused as to what is really a charge-off?
If you don't make payment against the loan for 180 days at a time, then your creditor can hand over the account to some debt collection agency, after declaring the loan account as having been charged-off. This charge-off will reflect in your credit history for next seven years from the date of declaration. This is of the charge-off is apparent to any credit lending institution that appears upon your credit report. Moreover, no credit firm will grant credit to a person who defaulted on a loan payment.
The easiest method to amend this situation would be to result in the outstanding payments and get the charge-off removed. However, you shouldn't just provide the money to the collection agency. Doing this will only increase the risk for appearance of the meek and mediocre "settlement" against the matching charge-off entry. It won't alter the proven fact that you'd indeed defaulted on a loan payment.
Therefore, the best way to start taking out the charge-off out of your credit history is to contact the original creditor who had lent you the money. The repayment is inevitable. You will have to repay the outstanding loan amount if you want to get rid of the negativity out of your credit history. Contacting and negotiating with the original lender will increase your odds of removing all the traces of a charge-off.
While talking with the creditor, remember that the charge-off was put because a business deal went sour for that creditor. He has no personal grudge towards you. Therefore, keep the conversation strictly business-like and take an undertaking in writing from the creditor that upon repayment from the debt, the charge-off will be completely taken off the credit report. If not this, and then make sure he agrees to mention "paid as agreed" or "closed-paid as agreed" from the charge-off account.
Since the option of the last measure, be satisfied with what "settled" but remember this is only going to slightly improve your credit worthiness. The whole point of making a repayment is to remove the charge-off altogether.
