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How To Remove A Charge Off A Credit Report

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These days, it can be very difficult to keep your credit file and score in check, as there are so many things that can have an impact on your credit. At the same time, it has become more important than ever to maintain a good credit score these days, as this is something that can have such as huge effect on your financial future.

If you make late payments or miss payments on bills and debt, it can affect your credit score. If you have court action of bankruptcy on your file, it will harm your credit score. High debt levels or borrowing a large proportion of your available credit can negatively impact your credit score. Another thing that can have a very damaging effect on your credit is charge-offs that are logged on your credit file.

More About Charge-Offs.

Charge-offs can be very damaging to your credit score, and this is why so many people are keen to get them removed from their credit reports. These charge-offs are basically accounts that have been closed by the creditor because you have failed to make payments on them for an extended period – often this is at least six months. This means that you have failed to keep to your financial commitments and contract, and the creditor has closed the account as a result.

Some creditors may add the charge-off to your account but might then pass the debt onto a debt collector or other third party. In this instance, the charge-off still remain on your account but with a balance of zero. If the debt is not passed on, both the amount owed and the charge-off will remain on your credit report.

Basically, this means that if you apply for finance from other creditors in the future, they will be able to see the charge-offs on your file and can see that you cannot be relied on to stick to your repayments. Of course, this makes it very difficult to get finance, as lenders are unlikely to approve you when you have charge-offs on the account.

Getting the Charge-Offs Removed.

Naturally, when you have charge-offs on your credit file, you want to try and get them removed as quickly and painlessly as possible. Well, there are a few routes you can consider in order to do this, and your circumstances along with the reasons for the charge-offs will play a part in the most suitable route for you. Some of the steps you can take in order to get charge-offs removed from your credit file include:

Dispute the Charge-Offs.

One of the options open to you is to dispute the charge-offs with the credit reference bureaus. This is something you can do if you feel the charge-offs are a mistake, if they need to be updated due to changes in circumstances, or if you feel they should have been removed in the past. Any issues with these charge-offs should be raised with the credit reference agencies, and they can then carry out an investigation with a view to amending or removing them. However, if the charge-offs are meant to be there, the credit reference agencies will not remove them. 

Pay to Delete the Charge-Offs.

Another option is to contact the original creditor that logged the charge-off on your credit file. If you speak to the creditor and make an offer to pay off the balance or come to an arrangement, they can contact the credit reference agencies to get them removed. It is worth noting that this is not something that is necessarily encouraged by the credit reference agencies, but it is something that can be done if the creditor is agreeable. So, it is worth speaking to the creditor to see whether you can pay what is owed in order to get the charge-off removed from your credit file. 

Speak to a Credit Repair Agency.

One other option you can consider is to speak o a credit repair agency to see if they can help you to get your credit file and score into order. While there is nothing a credit repair agency can do that you cannot do yourself, they can do it more quickly and they have the time and expertise to take the right route to help improve your credit score. So, they may be able to deal with the charge-offs on your behalf.

These are some of the key steps you can take in order to deal with charge-offs on your credit file.