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How bad do charge offs hurt your credit report?

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Wiki User
2015-07-15 21:29:37
2015-07-15 21:29:37

IT CAN HURT YOUR CREDIT DRAMATICALLY! CALL YOUR CREDITOR AND ASK TO PAY THIS CHARGE OFF IMMEDIATLY WHEN YOU ARE ABLE TO FINANCIALLY.

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Charge offs will stay on your credit report for 3 to 7 years

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Dispute them with the credit bureaus.

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Charge offs will drastically lower your credit score, just like any negative item similar to collections, judgments, and liens. They will stay on your credit report for 7 years unless removed. The more money owed and the more recent the charge off the more it will lower your credit score. You can remove charge offs by disputing them to the credit bureaus. The credit bureaus have 30 days to verify the charge off or it must be removed from your credit report.

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Yes, it's possible to have them removed if you dispute them.

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The charge offs will remain the required seven years and should be noted as included or discharged in bankruptcy.

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Yes, a creditor can remove a charge off from your account and your credit reports. Credit bureaus can also delete charge offs from your credit report if they are disputed and not verified.

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Charge-offs remain on your credit report for 7 years. If the account has been included in a bankruptcy, it should be marked as such...."included in bankruptcy". However, according to the Fair Credit Reporting Act, if you dispute the charge-off with the credit bureau and the creditor can not verify the account, it must be removed from your credit report immediately. Only the original creditor or the credit bureaus can remove a charge off, either through negotiations or through the dispute process.

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The Fair Credit Reporting Act allows charge offs and collection accounts to show for 7 years, plus 180 days from the last time you paid the account (on time) immediately prior to the charge off.

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First of all, charge offs cannot remain on your credit report for longer than 7 years so most credit bureaus remove them after 6 years 9 months to ensure proper compliance with the law. Secondly, it's possible that those charge offs are not yours and/or that the companies in charge of the charge offs have lost the records so it is possible, although unlkely, that you can get the charge offs removed by disputing them with the credit agency. Another possibility is that one company shows the charge off and the collection agency shows an open collection. You should be able to get one of those two eliminated as they are duplicates. Finally, it is possible to contact the companies that have made the charge offs and negotiate with them to remove the charge offs in exchange for paying part or all of the charged off amount. Some companies may gladly do this whereas others will not even consider it. You could initiate conversations with the debt holder by writing a letter to the address on your credit report basically offering to pay a portion of the debt in exchange for complete deletion of the negative credit entry. In conclusion, it's better to avoid charge offs and negative credit by paying your bills on time than to try to clean up your credit report afterwards.

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No. Personal financial difficulties regardless of there nature is not a legitimate defense for not paying a debt or for having the negative entry removed from the credit report. You will notbe able to remove charge-offs from your credit report unless you can pay the entire balance in full and negotiate with the original creditor.

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Yes, your credit score will impove if you payoff charge offs, if the lender or collector reports the payment to the credit reporting agency.

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A charge-off is a tax technicality that gives the creditor a tax deduction and you a taxable cash event. It does not "erase" the debt. You still owe it. It will stay on your credit report for 7 years. If it stays on after that period, file a complaint to the credit reporting agency that is keeping it on.

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Charge offs and most other defaulted debts are expunged (or should be) from a credit report seven years after the DLA.

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There is no statute of limitations associated with credit reports. However, any information that is more than 7 years old should be removed from the report.

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I am a professional debt collector and would say the best answer would be to either contact your credit card company and see to whom they sold the debt, as they no longer own the debt and therefore can not help you rectify the situation. The other option would be to pull a credit report on yourself and check to see if the collection agency is on your report, or if there was an inquiry on your report from a collection agency.

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Steps to Dispute • Get your credit report. • Review your credit report. • Decide which items you want to dispute. • Write letters. • Always hand write your letters in your own handwriting. • Keep copies of all correspondence. • Keep separate file copies on each credit bureau. • Follow up if needed. • Obtain results. also: Charge Offs - I paid "Account Name and Account Number" as agreed. You show this as a charge off, which cannot possibly be correct. Please correct the way you are reporting this. (Charge offs are an amount the department store has written off as a bad debt. It is then listed on the report as a charge off). Best of luck,

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Paying off collection or charge offs is NOT SUPPOSED TO reset the DLA (date of last activity). This is the date that determines how long a derogatory account can show on your credit report. You would need to find out the DLA on your specific accounts and follow up after payment to ensure that they are not re-aged. This would be illegal. Better yet, why not offer to pay for removal from your credit report completely?

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Most companies will not delete accounts that have been paid, nor do they have to under the law. The Fair Credit Reporting Act allows them to report the accounts as paid charge offs, or as charge off/collection with a zero balance and to report the date that the account was paid in full or settled.

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Why would you want to do anything? Having active accounts, instead of charged off accounts is a positive reflection of your past credit history and is probably causing you to have a credit score. This is a good thing, certainly much better than having charge offs, even paid charge offs showing. Your credit report is a history of how you have managed debt over the past 7 to 10 years. Accounts that were active during that period of time, whether open, closed, active or delinquent, are SUPPOSED to show on your credit report. Having them removed would certainly decrease your current credit score.

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Yes. Provided you pay your current accounts on time and have no new collections to your report, your credit score will increase.

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Revolving accounts or Charge offs will stay on your report for up to seven years. But if you are interested in knowing what the statue of limitation is for the state of NC, then it is three years.

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Charge offs are accounts that have been written off by the creditor as uncollectable. The debt owed is still valid and can be collected on either by the original creditor or by a collection agency. You can only erase charge offs by disputing them to the credit bureaus or negotiating the removal by the original creditor.

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I have had some luck removing bankruptcy's and public records from credit reports. I have also had good luck removing charge offs. I will help you if you want my email address is cary_zolman@yahoo.com

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Yes, you can get a mortgage with a 640 credit score and four charge offs. Obviously, the better debt to income ratio, better credit score, and fewer negatives all help in securing the best loan possible for your situation.


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