How to Get Rid of a Charge Off

Charge offs can appear on your credit report once a creditor or lender concludes that you have no intentions of paying a delinquent balance. Typically, lenders and creditors submit charge-off information after six months of non-payment. The consequences of a charge off include a drop in credit score and difficulties getting a new credit account or loan. Charge offs tend to remain on reports for seven years. But paying off an account can persuade a lender or creditor to remove this negative item early.

Instructions

1

Get in contact with the creditor or collection agency that owns the debs. Some creditors and lenders keep records of old debts or charge offs, while others sell the debt to a collection agency that then tries to collect the balance. Speak with the original creditor or lender to see if it still holds the debt. If not, ask for the name and telephone number of the collection agency.

2

Inquire about how much you owe. Mention your intentions to pay off the charge off, and ask for the balance on the account.

3

Offer a settlement. If you can't afford to pay off the entire balance, negotiate with the creditor or collection agency to see if it will forgive a percentage of the charged-off debt. Know in advance what you can afford to pay, and then offer this amount to the creditor or collection agency.

4

Ask the creditor to update your credit report following receipt of your payment. Paying off or settling a charge off does not guarantee the removal of this negative item from your credit report. But if creditors or collection agencies know your intentions, they may respond in kind and remove the charge off after receiving your payment. Discuss this possibility with the creditor or collection agency before sending in your payment.

5

Check your report a few months later to see if the creditor or agency updated your file. If the creditor or collection agency agrees to remove a charge off once you pay off or settle an old debt, order your report after a few months to confirm the update. Annual Credit Report issues free reports yearly from all three reporting bureaus.