How to Get a Charge-off Removed From Your Credit Report

It can be done, with out paying a credit repair company!

If only the collection bureaus would realize how much more money they would make if they would simply agree to remove the items from the report, upon full payment!

Things You'll Need

• Your triple-bureau credit report.
• A telephone.
• Pen and paper
• Time and patience.
• Nice and calm tone of voice.

Instructions

1. Look for phone numbers for the companies reporting the charge-offs. Write them down, along with the name and account number listed on each credit report. (may be different on each report)

2. Once you have them listed, call each company, and pleasantly let them know you are calling to settle a debt, in exchange for a letter stating that they are willing to remove each debt from your credit report. If the company agrees to delete the debt completely, then move on to the next step. If they do not remove the item, you can chose to pay the debt, but if the debt is not removed, and only updated as payed in full, it may still affect your credit score.

3. Write down the time, day and name of the person you spoke to at the collection company, whether they agree to remove the debt or not. You may need this incase a company tries to say you never contacted them to make arrangements on the debt. Keep details!

4. Once they have agreed, ask them to mail a statement, or fax the agreement letter to you in writing, along with a bill and a return envelope.

5. Once you receive the letter, pay the debt with a check or credit card. Do not pay with a money order if you can help it, and never send cash. You want to pay with a credit card or check, because you may need to show proof of a canceled check, or bank statement to the credit bureaus to have the charge-off removed. It may take the collection company up to 45 days to remove the item. If you have the letter, and a copy of a canceled check or bank statement, you may be able to call the bureau directly to have the item removed sooner.

6. If you chose to pay the company over the phone, with a credit card, make sure the company is willing to fax you an agreement letter before you pay it, stating that upon payment, they are willing to remove the item from each report that they report to. Some companied may only report information to two bureaus, as you will notice when you pull your report. It is very important that you have that information.

Tips & Warnings

• Keep calm! Creditors and collection agents talk to angry people all day, and they really do not owe it to you to remove the item if you let it go into collections. It is a courtesy, so if they do not agree, there is no point in getting rough with them over the phone. You will only upset yourself, and of course make them put that famous "collection" hat on, and we all know what that leads to. A very unpleasant conversation from someone who probably doesn't really want to talk to you anyway.

• If a collection company refuses to remove the item all together, you can chose to pay the item in full to show a 0 balance, or to avoid further collection activity, but it may still affect your score if not removed.

• If you believe an item is inaccurate, dispute the item through the bureau. The collection company has to verify the item is yours, and they have 30 to 45 days in some cases to do so. If they do not, the item will be deleted anyway.

• Do not dispute valid items. Contrary to popular belief, if the company verifies the debt, it will only update on your credit report and cause your score to plummet. If they happen to not reply to the credit bureau to validate the debt, it will be removed, but in some cases it is not worth it.

• If a company has validated the debt in the past, from a previous dispute, disputing it again will, most likely, only refresh and drop your credit score again. Settling the debt in return to have it removed completely will increase your credit score, and stop further action.

• It is better to settle large collection accounts, versus trying to get them removed by disputing them. In some cases by disputing the item, you may "remind" collection companies that you are alive and well, and they may start collection efforts all over again, except now they have a good address, and possibly a good phone number.

• Do not threaten legal action on items that are valid. The companies will be prepared to counter-act your claim, and if you go through with trying to sue over a debt that you have accrued, it will lead to more attorney's fees, and embarrassment.