A Credit report charge-off on your account is very harmful to your credit prospects. You are already 180 days late by the time your account gets charged-off. After the lapse of the 180 day period, the charge-off listing will remain on your credit report for another seven years from the initial date when it was charged off. This means that your account will have a negative report for seven and a half years. This is a very long time to have such a negative entry into your credit report.
You may be tempted to believe that a charge-off means that your debts have been forgiven. So long as the charge-off continues to be unpaid, the creditor will always make attempts to recover their money from your account. They may even decide to sue you if they feel that the amount is too much. Since future creditors and lenders pay serious consideration to credit report charge-offs, it’s important that you learn how to tackle this problem.
Talking to your creditor is one way in which you can remove a credit report charge-off. You can convince the creditor to remove the charge-off from your report in exchange for payment. You should decide how much you are willing to pay on your account. You will have more negotiating powers if you can pay more and at a faster rate. Always make sure that you speak to someone who has the authority to remove the charge-off from your report. You should from very early on inform the creditor that you are willing to make payment arrangements provided the charge-off status is removed from your report. You should keep the conversation polite and professional. You should also avoid blaming the creditor for your mistakes. In addition, you should keep the conversation short and to the point.
Since credit card companies are legally bound to report the correct information to the credit bureaus, it may be hard to convince a creditor to remove the charge-off from your report. Even with such difficulties, some cardholders have still managed to remove the charge-off from their credit report. In case you have by all means failed to convince the creditor to remove the charge-off completely, you should ask the creditor to indicate a ‘closed’ clause on your account status.
You should also get the agreement in writing in order to be sure that your charge-off credit report has been removed. You can get this accomplished in two ways:
1. You can request to be faxed with a copy of the agreement.
2. You can get the contact details of the person you talked to. You can then send a copy of the agreement to that person with a secure mail system and request to be issued with a receipt. You should also request the person to sign and then return the copy to you. In all cases, you should avoid making payment until you are absolutely sure that someone from the creditor’s company made the agreement.