What is a charge-off?
A charge-off occurs when you are seriously delinquent in paying an account. Typically, an item is only listed as a charge-off on a credit report once it’s over 180 days late. In simple terms, when one occurs, your creditor lists the account as not being collectible.
Creditors list bad debts owed as a charge-off primarily for tax reasons, so the amounts owed can be counted as a loss and tax write off for them. Although your creditors consider the item a loss for tax purposes, they still expect the debt to be paid off completely. If you have a charge-off appear on your credit history, creditors can still try to collect on the debt. Oftentimes, they will involve a third-party collection agency to collect on the money owed.
How do charge offs affect your credit score?
Having charge-offs on your credit history can dramatically impact your credit scores. If you have even one of them on your credit report, more than likely you will be declined for most loans as they are one of the worst items that you can appear on your credit history.
How long do charge offs stay on your credit report?
Charge-offs stay on your credit report for up to 7 years from the date the account was charged off. However, it’s possible to have them removed before then.
Will paying a charge off increase my credit score?
A paid charge-off is better than an unpaid charge off and may increase your credit scores slightly, however, even a paid charge off counts as a blemish and will negatively affect your credit scores for 7 years. It’s best to get it completely removed from your credit report.
Can charge offs be removed from my credit report?
Yes, there are several ways to have charge-offs removed from your credit report. One way is by negotiating a “pay for delete” with the creditors. Many times creditors do not want to bother with this and chances are they’ve already sent the account to a collection agency, but sometimes they are willing to negotiate. While you can do the negotiating over the phone, it’s best to have all correspondence in writing.
Another way is by disputing the account with the credit bureaus. By law, the FCRA allows you to dispute any items that you find questionable. Once a dispute is received by the credit bureaus, they contact your creditor and give them 30 days to verify the account. If they can not verify the account for any reason, it must be removed from your credit report. There are actually many reasons that they can not or will not verify the account.
You can dispute charge offs by writing letters to the credit bureaus or you can hire a professional credit repair company to handle the tedious legwork for you.
How can I delete charge offs from my credit report?
Getting a charge off removed from your credit score can make the difference between qualifying for a loan for a house or car, and not qualifying for financing of any kind. Read my story below (and check out the photos for proof) to see how you can remove charge offs from your credit report.
How I learned about credit the hard way.
A number of years back, I suffered some difficult times in my life. The company I worked for went under and I lost my job as a result. My bills, including some medical charge offs I had from an injury, got out of control and I could no longer meet my financial obligations. After a while, my accounts were all charged-off and I started getting calls from collection companies.
The phone calls from collection agencies were incessant and it caused me a lot of hardship as they tried to collect. Finally, I declared bankruptcy in order to escape, but my credit suffered the consequences.
How I took control of my credit score.
For the next several years, I couldn’t qualify for a home loan, auto loan, or almost any form of credit because my credit score was so low. Being rejected again and again for financing was an embarrassing process.
A buddy of mine referred me to Lexington Law and told me that they were a great company to work with. I was unsure if I should trust him initially, but he showed me how they had helped him, so I decided to give them a shot. I checked out their website to see if it was for me.
How Lexington Law helped me.
I called 800-220-0084 and I spoke with a lady who was an expert at helping people repair their credit. She wasn’t judgmental at all and sincerely tried to understand my situation and help me as best she could. I signed up with Lexington Law here and I’m really glad I made that choice. I saw results quickly when after only three weeks, I got my first letter in the mail saying that a negative item had been removed from my credit report. I got more letters after that.
My credit scores started to climb and after a while, I was finally able to buy a new home. I feel like it would have taken me much longer if it hadn’t been for the help of Lexington Law. Giving them a call was one of the best financial decisions I have ever made (see below).
Charge Offs Removed from My Credit Report:
“I have to admit I was a little skeptical at first, but after seeing what you were able to do with my credit after only a few months, it is very reassuring. Thank you for everything you are doing for me and please pass on to your staff my appreciation for all of their hard work.”
– T.B., Lexington client
“Thank you for your service. I have had great results from the work you have done on my behalf. After doing some research, I decided to give Lexington a try. The results have been better than expected. Several items have been deleted from my credit report and more importantly my credit score has dramatically improved. I was recently approved for ‘best rate’ financing on a new car and a home construction loan. Thanks.”
– B.K., Lexington client
You can read hundreds of client testimonials and even watch some very inspirational client video testimonials here:
If you’re sick and tired of having bad credit, I recommend you visit Lexington Law Firm. They can delete all kinds of negative items from your credit reports, including: bankruptcies, foreclosures, repossessions, charge offs, judgments, tax liens, collections, late payments and more.
Discount for Family Members, Couples, and Active Military!
Lexington Law is now offering $50 off the initial set-up fee when you and your spouse or family members sign up together. The one-time $50.00 discount will be automatically applied to both you and your spouse’s first payment.
Active military members also qualify for a one-time $50 discount off the initial fee.