Credit Repair

How to Remove Negative Charge-Off Entries from Your Consumer Credit Report?

When a creditor puts your loan accounts in “charged-off” status, it adversely affects your consumer credit report. This is one of the worst negative entries that can appear on your report. Therefore, it is important for you to learn how to remove such entries and take control of the situation before it takes a horrible shape. If you do not do anything in this regard, the accounts will remain delinquent on the report for the next seven years. Luckily, there are ways to get such entries removed and achieve a healthier FICO score, but that will require you to make some difficult decisions and implement the same strictly. Following is a brief rundown on how to go about it.

Don’t Get Fooled with the Term “Charged-off” or “Written-off”

When a creditor charges off or writes off a loan account, it does not mean that they are no more liable to . You still owe the debts to them and the creditors will continue with their various attempts to force you to pay off the money. They often do this by taking help from debt collectors. If even that doesn’t help, they can even sue you for the debt.

Negotiation with the Creditor Is the Best Tactic

When it comes to removing charge-off accounts from your consumer credit report, the best thing you can do is to negotiate a mutually agreeable resolution with the creditors. When you have been missing your monthly payments for several months, talking to your creditor is probably the last thing that you would like to do. But, it is in your best interest. It is very important for you to keep in mind that lenders only want their money back. So, when you talk to them, discuss your situation with them, and show your willingness to make the payments, they may consider making the terms more favorable for you, giving you some instant relief, such as waiving off of penalties, reduced interest rate, extended loan term, and lower monthly payments. Make sure you talk to the original creditor, not to the debt collection agency. Debt collectors do not report to credit bureaus, your original creditor does. When a deal is finalized, the bureaus will be informed about the same and they will remove the charge-off entries from your credit report.

Get the Agreement in Writing

Always remember, verbal promises have no legal value. Verbal promises won’t help you repair your consumer credit report. When you finalize an agreement with your creditors, make sure you get it in writing on company letterhead. For this, you can ask the person you spoke with to fax you a copy. Alternatively, you can document the details on a paper and then send the same to that person, requesting him/her to send you a return receipt that must be duly signed by him/her.

If nothing works, the only option available to you is to make the repayment of all your dues. The sooner you do this, the faster it will reflect on your and the faster you will be able to get rid of those nasty charged-off accounts.

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Posted in Credit Repair, Credit Repair Services | 3 Comments »

3 Responses to “How to Remove Negative Charge-Off Entries from Your Consumer Credit Report?”

  1. [...] in order to make sure that everything is going in line with the terms of the agreement; your consumer credit report must reflect those changes within a couple of months. @import [...]

  2. daoc plat says:

    Well, the post is actually the freshest on this laudable topic. I concur with your conclusions and will thirstily look forward to your future updates.

  3. Joseph says:

    Pay day loan can attract any body that is need of money. If the borrower is surviving with shortage of fund, it becomes really difficult to pay back the loan due to its very high rate of interest. Once a person makes the default payment the loan amount seems impossible to face and then he/ she has to go for a debt settlement. This step will remain in your credit report for many years as charge -off entries. The other thing is that you are still liable to pay back your debt. Your skills of Negotiation with the creditors can pull out from this situation. They can get ready to get a fixed amount and then send the report to the credit bureaus as paid in full. Precaution must be taken while negotiating with the creditors; you can consult an experience lawyer regarding your situation. He / she can guide you very well. All the talks must be converted into a written agreement and it should be duly signed by the authorized person of the creditors company otherwise you can be ditched by the professional. By having the positive attitude with some strict negotiation skills, you can remove negative skills.

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