How to Remove a Charge Off From Credit Report

(MENAFN- Outreachxpert Ltd)

Charge offs are considered to be a negative mark on the credit report. Besides this, they are one of the major derogatory marks that can develop a negative impression of your payment history as well as credit scores.

As a matter of fact, a charge off would remain on an individual's report for a longer duration of seven years. However, the question which needs to be addressed is that how to remove a charge off from the credit reports as early as possible. This question is therefore addressed in this article and the methods to remove charge off would be discussed. Here are they:

Methods to remove the charge off as early as possible:

There are three methods to remove a charge off from your credit report and free it from any negative information that might affect your reputation. The three methods are:

File a dispute with credit bureaus:

Your report including how you pay bills is shared by the companies you do business with to the credit bureaus. The agency then gathers information related to you from multiple sources to create an easy-to-read report and later the report is sold to other companies who desire to work with you.

According to the fair credit reporting act, you may file a disputed error with credit bureaus as it is your legal right to “dispute with the consumer reporting agency the accuracy or completeness of any information in a report”. After you file a dispute the credit agency then has 30 days to investigate and find out the truth and the agency has to choose either of the following:

  • Omit it
  • Update it
  • Verify it is accurate

If your dispute gets successful then the charge off will be lifted if not then it will remain as it was.

Negotiate and pay:

You may negotiate with your creditor and pay the amount to omit the charge off the mark from your credit scores. You may pay the creditor and in return, the creditor can ask the bureaus to lift the charge off. This act is officially stated as legal and known as a "pay for delete" offer as the act of credit reporting is completely optional that is the reason why it is legal. One thing you should keep in mind is that the creditor sometimes prefers to send the actual report to the credit bureaus therefore the creditor may reject the offer as well.

Credit repair company:

It is your legal right to hire a credit repair company and dispute a file on your own. In the case at first, you failed to win the dispute; an experienced credit repair company might help you sail your boat. While hiring someone, you need not look at the process yourself but the team of experts would overlook it for you. These companies can dispute over an inaccurate or doubtful piece of information and win the dispute. It is quite understandable that there is no guarantee that the company would definitely win the case, however, you may spend some money and hire one of the best repair companies.

Stay alert in the future!

Once the charge off is taken off your credit report, take responsible steps and improve your credit report in the future. Strategize and plan your budget according to your finances and take guidance from credit counseling services.



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