What to do if you find a Charge Off on your Credit Report

steps to debt relief

Did you find a charge off on your credit report? Actually the term ‘Charge off’ gives some misunderstanding if you actually don’t know the term ‘charge off’ in relation to credit cards. A charge off is the result of not paying your credit card bills for several months. Most of the credit card companies consider 6 months in a row and cancels your account demanding the due balance. Worst is that you need to pay this credit amount in full!

Actually a charge off on your credit card will be a negative entry for your credit report and it will remain on your credit report for a long time up to seven years.

What to do if you find a charge off on your credit report?

Actually the first thing you need to do is to pay your debt. But the term ‘Charge off’ sounds like the debt went away. Am I right? Yes, still the term confuses people. But in the language of accounting, the debt is taken off from a balance sheet due to the reason of more than 180 days due payment. But that doesn’t affect in any way for your responsibility of making the payment.

Here are the options you can do after finding a charge off on your credit report.
An unpaid charge off will damage your credit score. That will affect you when you try to buy some major item or even when you try to rent an apartment.

Talk to the Creditor & negotiate a charge-off removal

If you see a charge off in your credit report, the first thing you can do is talk to your creditor. However usually charge offs are sent to a collection agency. But, you need to try to talk with your original creditor who reported this charge off. A debt collector or collection agency is just a third party and they can’t do anything about your charge off.

Once you talk to the creditor, negotiate the possibility of removal of charge-off. Usually creditor will report about this to the credit bureaus and that will damage your credit record. Thats why you need to  negotiate with the creditor to remove charge off and you can do the payment if they agree.

Get the Agreement in Writing

If you have a successful negotiation with your creditor, they will agree to remove the charge off in exchange of full payment of the debt. If they agree, get an agreement copy in writing and avoid full payment till they give you the signed agreement of settling the charge off.

Once you make the payment, make sure your creditor has completely removed the charge off.

Improving Your Credit Report

Now you could remove the charge off. However, you need to pay attention to improve your credit report. You can take necessary measures on fixing credit after a charge off such as pay your bills on time. You also need to learn the lesson from the mistake and plan your credit card payments wisely to avoid future charge offs to your credit report.

Above are the basic steps to do if you find a charge off on your credit report. Always try to keep your credit report free from these types of damages. However, always there is a solution for your debt problems. So, if you see something like this, always seek help and negotiate with your creditor and try to remove the harm for your credit report.

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