How to Remove Charge-Offs on Your Credit Report

A charge-off on your credit report is negative, and this one item can prevent mortgage loan or auto loan approvals. Paying a charge-off doesn't always result in its removal from your personal files, and creditors or collection agencies aren't required to delete a charge-off. Charge-offs, whether paid or unpaid, stay on your report for seven years. But you can work with collection agencies and creditors to negotiate an early removal.

Instructions

1

Speak with the company that handles the debt. The original creditor may own the debt, or the creditor may have sold the debt to a collection agency. Look at collection letters mailed to you to determine who owns the debt, and then call this company to begin negotiations.

2

Negotiate paying the debt. Tell the creditor or collection agency that you would like to satisfy the old charge-off, but in return, you want the charge-off removed from your credit report entirely. If the company agrees, ask for written confirmation of the agreement, and wait until you receive this letter in the mail before mailing your payment. If working with a collection agency, ask the agency to notify your original creditor of the payment and have it update your account to "paid as agreed." Request written confirmation from original creditors, as well.

3

Mail your payment once the creditor or collection agency agrees to this arrangement and then check your credit report (see Resources) after a few months to confirm that the creditor or agency has fulfilled its end of the bargain. If the charge-off remains, contact either your creditor or collection agency for information on when you can expect a deletion.