How to Remove a Charge-Off Without Paying  [2 Steps to Follow]

Charge-offs substantially harm your credit and make it challenging to get approved for loans, credit cards, and more. Even if you pay a charge off, it can stay on your credit report for many years.

What is a  Charge-Off?

When you’ve stopped paying off debt for a significant amount of time, typically six months or more, the creditor will create a declaration that you aren’t likely to pay off your debt. This declaration is called a charge-off.

Does a Charged-Off Account Show on Your Credit Report?

Yes, a charged-off account does show up on your credit report. As soon as you have delinquent payments, your credit card issuer will change the information reported about you on your credit report.

How to Remove a Charge-Off Without Paying

Look for the charge-off entry and make sure everything is 100% accurate. Suppose you see anything wrong, such as the account number, borrower names, balance, payment history, etc. In that case, you can dispute the entire charge-off entry with any credit bureau.

1. Negotiate with the Creditor

Negotiating with the creditor usually still involves paying some of the debt. In a “pay for delete” arrangement, you pay them to remove the charge-off, and the Fair Credit Reporting Act states that this is legal.

2. Consult with a Credit Repair Company – Buyer Beware

Most of the time, credit repair companies can’t do anything you can’t do yourself. It may save you some time, but better results won’t be more likely than when you fight the charges yourself. Any company that promises results is likely a scam.

When You Can’t Remove a Charge-Off From Your Credit Report

Even if you eventually pay off your debt to a credit issuer or collection agency, charge-offs typically stay on your account. As charge-offs age, their overall impact lessens. Charge-offs remain on credit reports for seven years before falling off entirely.

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