What are the tips for removing a charge-off from your credit report? Having a charge off on your credit report is very terrible. This happens due to a lot of payments that you did not make for 6 months in a row. The credit card issuer simply writes it as their loss, cancel your account and ask you to pay all your balances fully.
Before the charge off, the card issuer lowers your credit score. Even if you apply for a card at this time, the credit card issuer will deny it. When they finally charge you off, it will lower your credit score very well. It as well remains in your report for 7 years.
Tips For Removing A Charge-off From Your Credit Report : Does It Mean You Are Forgiven?
Certainly not! You MUST still pay your debt. If you do not pay the creditor can sue you. They will always deny your future loan or credit card application. If you do not pay your debt to remove this from your report, you may run into
Tips For Removing A Charge-off From Your Credit Report : Talk To The Creditor
It will be in your best interest to convince the creditor to remove the charge-off from your credit report. However, you need to pay them a certain amount of money. Decide on what to pay your creditor before calling him. Ensure that the person you are speaking to has the authority to remove the charge off from your report.
Do not go to give excuses, be polite and go strait to the point. This will convince the creditor to grant your request.
Another interesting option is to send a pay for delete letter to your creditor. In the letter ask the creditor to remove the account from your credit report in exchange for full payment. To make this successful ensure that the letter gets to the manager of the company. Even though creditors are contractually bound to report credit information to the credit bureaus, some still receive pay to delete letters and delete the charge off for the card holder. This is not to say that all creditors accept pay to delete. If your creditor does not accept this, seek another alternative.
Get A Written Agreement
Yes! If the creditor accepts to remove the charge-off from your report, ensure you put this in writing. Do this by getting a copy of the agreement with the company’s letterhead. Ensure that the amount you are paying is clearly stated and what you are paying for. Also, keep the name, mailing address, and phone number of the person you spoke with. Send a copy of your agreement to that person via certified mail with return receipt requested.
Make payment only after the agreement has been written and signed and when you are certain that you have made agreement with the right person. After the payment, you will see that they will remove it from your report.
When You Have No Alternative
When your creditor refuses to accept pay to delete, decide the next thing to do. You can choose to pay the debt or not. Remember that it will remain in your report for the next 7 years. Am sure you may need another credit card, a loan or anything that will demand your credit score soon. It is BEST to pay it.