The Best Guide on How to Remove Charge Offs From Your Credit Report in 2021

The Best Guide on How to Remove Charge Offs From Your Credit Report in 2021

However, with the right tools like this article on how to remove charge offs from your credit report, you will be assured that it will be a matter of time before those charge offs can be taken out. 

how to remove charge offs from your credit report

Your credit report is a record of your payment history and allows lenders to gauge whether or not you are a risk in terms of getting a loan.

It can even influence how much you can borrow and how high or low your interest rates are going to be.

While most issues you may encounter with your credit score can be remedied, one of the worst issues you can encounter is for a charge off to appear.

If not careful, it can have a huge negative effect on your credit score and it can even stick to your history report for seven (7) years.

So what should you do?

Well, it’s important that you dispute those on your report and get it removed as soon as you can.

Let’s take a look into what charge offs are and how to remove charge offs from your credit report.

What Exactly Are Charge Offs

how to remove charge offs from your credit report

Charge offs (or sometimes written chargeoffs) is a declaration by the lender or creditor that a certain amount of debt is going to go unpaid or uncollected.

This typically happens when a debt hasn’t been paid for at least 6 months or more.

Charge-offs are often seen in the form of write-offs and are usually passed on to a third-party debt collector. 

However, not all charge offs are valid and so you need to know which ones you can dispute and which ones you can have removed by paying it off. 

Identify The Charge Offs On Your Credit Report

You can get a copy of your credit score report every year for free.

We suggest that you get a copy of the report from all three credit bureaus.

Once you have the report, make sure to check every item and identify all the charge offs that appear on your account.

Now to remove charge off from credit report, you need to first know if the charge off is a legit charge or not.

You see, sometimes, even if you have already paid for an outstanding debt, it is possible for a charge off to appear as it was reported by the system automatically before it was paid off.

If this was the case, then you need to go through a dispute process.

If your charge off, on the other hand, is legit, then most often than not all you need to do is pay off the charge off.

Once paid, you need to have a creditor or third-party collections agency to have the charge off removed. 

Once you identify the charge off, here are the next steps on how to remove charge offs from your credit report.

Dispute a Charge Off If In Error

If after checking the charge offs in your credit report and you believe it to be an error, then you need to dispute it right away.

As mentioned, charge offs hit your credit score for more than a hundred points and may stay there for up to seven years if you do not dispute it.

Make sure that the balance is paid off before you make any claims. 

You then have to get in touch with the credit report bureau to make the dispute.

Disputes can be done via mail, over the internet (through their online form or via email), or by phone.

All three ways work, but it is in our experience that calling them is the fastest way to dispute any errors.

You may be requested to send in documents showing which item is being disputed (in this case, the charge off) and why you believe it’s an error.

You may be requested to also show proof that the charge off was made by mistake by showing payment to a creditor.

How to Remove a Charge Off if it’s a Valid Charge

how to remove charge offs from your credit report

So you’ve identified the charge off and you’ve figured out that it’s a valid charge. 

So what do you do next?

The most obvious reason is to pay off the balance with the creditor or a third-party collections agency in charge of the debt.

However, before you do, you will probably need to negotiate with your creditor first before you make any payments.

First, negotiate with the lender that they will remove the charge off from your credit history if you pay for the balance in question.

It’s pointless to pay the balance if you won’t be able to reverse the charge off on your credit history.

Now some companies may claim that they can’t remove the charge off from your credit report but this certainly isn’t true so continue to negotiate until they agree.

Now, if it’s an old debt, you can actually negotiate the amount you are paying.

You can negotiate to pay a part of the whole debt instead of the whole amount.

Start from 50% then move up to negotiate to pay the balance back off. 

While making arrangements over the phone are the fastest, always get in writing what you agreed upon with the creditor.

This protects you and ensures that your charge off gets removed no matter what happens.

Only once you get a written agreement do you send in a payment. 

The Advanced Method of Removing a Charge Off

Another way on how to remove charge offs from your credit report is by scrutinizing every detail of the charge off.

What do we mean?

Well, you see, when a credit report is generated, it actually shows the details of the charge off.

If there is any mistake in any details of that charge off, you can dispute it and have it removed.

The details to look out for are the following:

  • Account Number
  • Creditor Name
  • Open Date
  • Charge off Date
  • Payment History
  • Borrower Names
  • Balance

The key is to be detailed in every segment of the charge off in the credit report.

Any mistake can be disputed will help on how to remove a charge off on your credit report.

Hire a Professional

The last option you can take to remove a charge off is by hiring a professional.

There are many credit repair companies that are experts at helping people dispute charges and of course, assist them in getting their credit scores back on track.

Do note, however, everything they do is nothing that you cannot do yourself.

However, because they help remove charge-offs on a regular basis, they have all the experience and can possibly do it faster than you can.

You will have to spend a few more dollars but you’ll get peace of mind that what you need will get done. 

how to remove charge offs from your credit report

Final Thoughts

We might think that removing a charge off can be difficult.

And if you don’t really do your research, it can be.

However, with the right tools like this article on how to remove charge offs from your credit report, you will be assured that it will be a matter of time before those charge offs can be taken out. 

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Author: John Benares

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