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How do charge offs affect your credit?

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2010-02-13 05:09:11
2010-02-13 05:09:11

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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Related Questions


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


Dispute them with the credit bureaus.


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


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.


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


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.


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.


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


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



Late payments, closed accounts, charge offs, judgements, tax liens, bankruptcies, anything that is considered negative and derogatory.


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.


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.


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.


Keep in mind that what you have done in the last 24 months is what considered most. You can be in good standing with your credit card--but not using it properly will still affect your score. As Phil Turner said in his book titled "The Credit Bible" "If your credit card balance is over 30% of the balance, this will affect your score." Those collection account and charge offs will hurt, but not as much in 24 months.



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.


The phrase "charge-offs" is the announcement by a creditor that an amount of debt is unlikely to be collected. This process often develops when a consumer becomes severely delinquent on their debt.


you fill up the tub with luke warm water and get some soap and just wash it. ?


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


"Yes, your credit score needs to be at least a 700 are have a great credit history with no charge offs are discharges.ING Mortgage does work with you to help you get your credit on track to possibly getting a mortage with them."


yes , you need to build your credit. the charge offs will stay on your credit score for 10 years or more and you will never get a loan. or improve your credit, pay them off. continue paying your bills on time,save money.go to your bank and get a secured credit card,best way to build your credit back up.


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.


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,


BOTH! that more important. You dont want get into mess of Credit. Good luck



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