How to Remove a Charge Off

A charge off is a mark on your credit report from a debt owed to a creditor that has not been paid for six months or longer. Most charged off debt are from unpaid medical bills, credit card charge offs, and utility bills. A charge off will remain on your credit report from seven to ten years depending on the state where you reside. A charge off account will remain on your credit report even if it has been paid. To improve your credit score and remove a charge off account, follow the steps below.

Instructions

1. To remove a charge off account from your credit report, pay the debt in full and wait the seven to ten years for it to automatically come off your credit report. The seven to ten year waiting period lasts from the time the charge off debt was paid off, not the date it was first reported to the credit bureaus. A paid charge off will still negatively affect your credit, but it will not affect your credit as badly as an unpaid change off. Many people mistakenly believe that once a debt has been charged off the debt has been canceled. This is not true. You are still responsible for the debt.

2. If you have an unpaid charge off account, negotiate with the collection company to remove it from your credit report before you pay it off. Most creditors will agree to remove the charge off; they want to collect their money. Make sure to get an agreement in writing before you pay the charged off debt. Since charged off accounts are usually sold to a collection company by the original creditor, you may also have to negotiate with the original creditor to remove the charge off from your credit report. Check with the collection company. Make sure to keep notes from all your conversations with the creditor in writing. Keep copies of all written correspondence.

3. It is also possible to remove a charge off by disputing the information on your credit report with the three major credit bureaus, Equifax, Experian, and TransUnion. Disputing your charge off with the credit bureaus is challenging. It usually takes several attempts, and most people are not successful. Basically, if there are any errors on your credit report regarding the charged off account, the credit bureaus will remove the derogatory information. Make sure to keep copies of all written correspondence and keep notes of all conversations. Check out the link in the resource section below for information about The Fair Credit Reporting Act and disputing credit report errors.

4. The best way to remove a charge off is to find a reputable credit repair service. Most reputable credit repair services will not guarantee they can get a charge off account removed from your credit report. Typically a reliable credit repair service will say there is a certain percentage of chance that they can remove the charge off depending on the situation. A reputable credit repair service will also suggest that you pay off the charge off debt first if it is unpaid. The longer the charge off account is on your credit report, the easier it will be for the credit repair service to remove it.

Resources

• Federal Trade Commission - Information about The Fair Credit Reporting Act