subject: How You Can Remove A Charge Off From Your Credit Report [print this page] A direct consequence of recession and the current credit crunch, using a charge off on your credit report can significantly impair your chances of securing the much coveted mortgage loan or vehicle loan (even though both of these are mortgaged loans) or any other loan. Any term lending institution will think twice before agreeing to satisfy your credit request if your credit report shows a charge-off.
Have you been confused as to what is a charge-off?
If you do not make payment against the loan for 180 days at a time, then the creditor can hand over the account to some debt collection agency, after declaring the loan account as being charged-off. This charge-off will reflect inside your credit history for next seven years in the date of declaration. The meaning of a charge-off is apparent to any credit lender that looks upon your credit report. Moreover, no credit firm will grant credit to some person that defaulted on the loan payment.
The best way to amend this situation is to make the outstanding payments and obtain the charge-off removed. However, you shouldnt just give the money towards the collection agency. Doing so is only going to result in the appearance of the meek and mediocre settlement from the matching charge-off entry. It won't alter the fact that you'd indeed defaulted on the payment.
Therefore, the easiest method to start removing the charge-off from your credit history is to contact the original creditor who had lent the money. The repayment is inevitable. You'll have to repay the outstanding amount borrowed if you want to get rid of the negativity from your credit history. Contacting and negotiating using the original loan provider will increase your odds of removing all of the traces of the charge-off.
While negotiating with the creditor, keep in mind that the charge-off was put just because a business deal went sour for that creditor. He has no personal grudge towards you. Therefore, keep the discussion strictly business-like and take an undertaking in writing from the creditor that upon repayment from the debt, the charge-off would be completely removed from the credit report. If not this, then make sure he agrees to mention paid as agreed or closed-paid as agreed against the charge-off account.
As the option of the last measure, settle for the words settled but don't forget this is only going to slightly improve your credit rating worthiness. The whole point of creating a repayment is to take away the charge-off altogether.
