Tuesday, 23 December 2008

• How to Delete a Charge Off from Your Credit Report

  Building a good credit line takes a lot of effort. That’s why having a charge-off in your credit report is very harmful to your reputation as a borrower. 

  A charge off occurs when you don’t pay your debt on time until it stretches out to 180 days. For tax purposes, this is written off as un-collectible by the creditor and therefore, reflected as losses to the lending company.
  

  Having your debt charged off is not as simple as deleting your account.  Your debt is actually sold off to a third party collector who will endeavor to collect on your account, employing any means, legal or not, for as long as they can convert the debt to payments.
  

  Even after paying the charge off, the record will still reflect on your credit report for seven years. This would seem ages, if you are hoping to get a loan for an important expense.  However, removing a charge – off from your credit report is very negotiable; there are legal ways to remove it.
  

  This process involves a lot of writing. First, you can write the credit bureau to dispute any part of the report you deem might have errors. If the credit bureau maintains the veracity of the account and still verify it, you will have to deal directly with the creditor. Call the creditor company and ask for a contact person to negotiate with. Make sure that in the negotiation process you keep a record of everything in written form as proof, especially when you bargain for the charge off to be removed from your report.
  

  Charge offs should not prevent you from doing things that would improve your living conditions. Remember, you don’t have to wait 7 years to go on with your life. Immediate and concerted action is all that is needed for you to improve your credit report, and take that burdensome charge off from your account.        

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