How to Reverse a Negative Charge-Off

A charge-off results from ignoring a debt for more than six months. Creditors write off the loss, and this loss appears as a charge-off on your credit report. If applying for a mortgage or car loan, the lender may request that you satisfy a charge-off before they will approve your loan request. A charge-off stays on your report for seven years, but you can settle the debt to qualify for financing.

Instructions

1

Notify your creditor. Original creditors don't always retain past-due accounts after a charge-off. Talk with the original creditor to see if the company owns the account, or if you will need to speak with a collection agency.

2

Ask about the balance due. The balance on the account may have increased due to late fees.

3

Announce your plans to pay the charge-off. Ask where you should send your payment to rectify this old debt. Ask the creditor to remove the charge-off after you make a payment. If they refuse, tell the creditor or collection agency to update your credit history to indicate that you paid the charge-off.

4

Make a copy of the check written or money order used to pay this past-due account. This serves as proof of payment.