A charge off is a debt that is severely delinquent, where the creditor states that it has turned out to be un-collectable. The account is shut and not active once it is reported as a charge off. The lender at this level is in a position to write the sum off as a loss on their books, but it remains on your credit report up to seven years. No matter how old the charge off is, you can work to legally have it removed from your credit report for 10 cents on the dollar.
Regardless of the simple fact that the financial debt has been classified as a charge off, the creditor is still interested in collecting what is owed. Usually, they are prepared to settle for pennies on the dollar at that stage. In order to have charge offs removed from your credit report, you initially need to order copies of all three credit reports. Then, identify the accounts that are detailed in charge off status.
Notify each creditor and ask if they are prepared to clear away the item off your credit report in trade for a diminished cash settlement on the debt. If you get a strong do it yourself credit repair system, you will have the tools available to word the letters accurately and negotiate a settlement amount.
A record number of charge offs have been noted to be eliminated in the previous eighteen months as creditors have experienced an increase in delinquencies and bad debts. The important thing is to understand what you are doing when you deliver them the letter. For illustration, if your letter is not worded appropriately, you may well wind up having to pay for the debt, but not being able to get them to eliminate the charge off from your credit report. The distinction between a well-worded letter and a badly worded one is subtle, but a credit repair system that is written by industry specialists will ensure that you will be productive.
If you are wondering if it is really worth the time and work to restore your credit think about this: two charge offs can simply lessen your credit score by 190 points! Taking the time to repair your credit report is small in contrast to the income you will conserve on long term interest charges. In addition, when you remove charge offs it will permit you to obtain that new car or credit card you really need. Take the time to repair your credit so you can achieve monetary freedom!
