Have you ever found yourself in a position where you are unable to make payments to anything that is due? For example, mortgages, auto loans, or home services. And then you find yourself in a position where you’re getting multiple calls from collection agencies to make the payments with these delinquent accounts? Well, this is what is known as a charge off.
In short, a charge-off is when you miss too many payments on any one of your accounts and the Creditor stops you from making any payments to that account. Although you’re not quite off the hook if that happens, a charge-off can heavily affect your credit account and you can still be responsible for the debt on the account. Looking for some credit repair services if you think that your credit report has a charge off that should not be there.
So if you haven’t been paying your account you may wonder how the credit bureaus do actually know to record this. Well once you have it made payments to your account for usually about six months, it can vary depending on what it is. For instance, a credit card if you haven’t made it a minimum payment for about a hundred and eighty days that’s when the account goes into a delinquent status. That’s a lesson to a creditor does report to the credit bureau letting them know that your account has a charge off. Once they let the credit reporting company know, a charge off can stay on to your account for about seven years, usually from the day that you missed the first payment.
In most cases, if a creditor does your account to a third party collection agency it can also take another hit on your credit score. Because not only what you have a charge off but you would also have an account in the collection as well.
Seeing a charge off on your credit report is the greatest and quite frankly could be a little bit upsetting. To think that at times you may have had a financial instability where you were unable to make payments and now you’re getting punished for it when you’re looking to make those financial milestones in life. Don’t be disheartened because you do have some options will you can have the charge-off removed from your credit report I’ll be able to move on with life stress-free. So here’s a list of things you can do to have a charge-off removed too.
Pay off the Debt. This may be a little bit obvious the one for sure way to have the charge off removed from your account is to pay off the debt. It will reflect as a paid collection, but hey that’s still a lot better than having a charge off and collections on your credit report.
Another tactic you can use that is highly recommended is paying for deletion. Essentially you negotiate with a creditor to have the charge off removed from your credit report once you make the payment of the debt. So this is where your negotiation skills should shine, ensure that the Creditor agrees that they can remove the charge off from your report in exchange for you paying off the debt. We highly recommend that you get this in writing and speak to someone who has the authority to do so.
Consolidation. if you’re adamant on getting a charge-off removed from your credit report in the only way to do so is by paying off the debt one tactic did you can do is consolidate the debt. Keeping track of multiple credit cards and personal loans can be a little bit overwhelming, but if you can use one of them to pay off the debt that you owe to remove the charge off on the account is a great start. And then you can manage payments by setting up automatic payments through your bank so that way you don’t have any late payments going towards the amount due.
Credit Repair Professionals. We had met dealing with all of these different things can be quite a hassle. Especially if a charge-off is not the only thing you have to have fixed in your credit report. It can be extremely time-consuming, frustrating and whatever else you name it. Which is why one of the best options is hiring a credit repair professional. They know what they’re doing and more than likely they’ll always end up with a positive result. So if you’re looking for a reputable credit repair company to help you out on your credit report, definitely give us a call here our local professionals aren’t shy and I’ll help you out no matter what.
A charger is something very serious on a credit report, it can knock your credit score down a few points leaving you in an unfavorable position to lenders. We advise that you always take a look at your credit report as much as you can each year. that way you’re on top of your credit report and you know what’s going on, and maybe next time, if there’s a negative item that you don’t think, should be there such as a charge-off you know exactly how to handle it.
Once you can handle that charge off, take the right steps to be responsible so you won’t be in a position like that again.