Unique Original Articles » Deleting Charge Offs from Credit

If you have charge offs on your credit reports most likely it is from credit cards that you stopped making payment on. Once you stop making payments, the bank will "charge off" the debt and receive a little tax credit for their loss. This does not however, imply that you no longer owe on the credit cards. Some creditors will hold onto the debt and attempt to collect on it themselves, some hire collection companies to collect for them, while even others will sell the debt outright to junk debt buyers.

Charge offs are absolutely brutal to your credit reports and scores. Your ability to obtain new credit will be significantly reduced. Once a debt is charged off it will remain on your credit report for up to seven years from the date of last "mutual" activity which is usually the date of your last payment. If you make any payments afterwards you can re-start the seven year period.

Once your credit cards is charged off you have few options:

Option #1

Reach an agreement with the creditor to pay off the charge off and ask for the charge off to be removed from your credit record as part of the settlement offer. Depending on the age of the charge off, you might be able to get settlement for as little as 30% - 50% of the original balance. If the charge off is newer, you will most likely have to pay it in full. If the lender will not agree to remove the charge off from your credit reports, once it is paid in full you should dispute the charge off with the credit bureaus. More than likely since it is paid it will be removed.

Option #2

If you would rather not pay the charge off then you can still attempt to remove the charge off from your credit report by disputing it with the credit bureaus. There is a chance that it will be placed on your credit report again down the road. Also, the credit can attempt to get a judgement on your credit reports to collect on the debt. If this happens you can ask for debt validation to ensure that they have proof enough to collect on the debt.
If you are facing a charge off on your credit I suggest contacting Lexington Law Firm as they specialize in charge off removal. If you have more questions in regards delete charge offs please visit my website. For a free credit consultation please call 1-800-258-0062.

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