How do I Eliminate Credit Report Charge Offs?

Your credit report is a snapshot of your financial reliability. Creditors use your credit report to determine if you are a safe borrower. As we mature, we realize the importance of good credit. It is never too late to clean-up your credit. If you ever had a seriously delinquent account, the creditor may write the balance on the account off as a bad debt, referred to as a charge-off. If your credit report contains charge-offs there are steps you can take to remove them and improve your credit score.

Instructions

1

Review your credit report. You are entitled to a free copy of your credit report every 12 months under the Fair Credit Reporting Act. Request your copy by visiting annualcreditreport.com. Since the information reported to each credit bureau may differ, you will need copies from the big three: Equifax, Experian and TransUnion.

2

Locate the creditor reporting the charge-off. In order to have a charge-off removed, you must negotiate directly with the creditor instead of a collection agency. You will need to get the name of the creditor, phone number, address and account number to handle the debt.

3

Negotiate with the creditor. Try to come to an agreement to settle the debt. In some cases, the creditor will settle for a lesser amount than the total balance due. Paying off the debt does not automatically remove the charge-off.

4

Request a written agreement before paying the debt. The payment is your leverage. Have the creditor send a written statement agreeing to remove the debt from your credit report at all three bureaus once the debt is paid.

5

Pay the debt as agreed. If you are mailing in your payment, send in a copy of your agreement as a reminder. Keep proof of the payment for your records, you may need it later.

6

Follow-up by checking your credit report again. To make sure the creditor is fulfilling their end of the agreement, you will need a new copy of your credit report. If the debt is not removed within 30 days, contact the credit bureaus directly to file a dispute. Provide each bureau with evidence of the agreement and proof of payment. The credit bureaus have 30 days to investigate and remove the charge-off from your report, according to the Fair Credit Reporting Act.