Addressing Charge-Off Concerns in Your Credit History What is a Charge Off and Can CaliCredit Repair remove it from my Credit Reports?
A charge off is typically placed on your credit report if there has been a failure to make any payments on the debt for 180 days. Lending institutions and creditors view charge offs as indicators and proof that you have not been responsible with your finances and is not credit worthy to fulfill your financial obligations currently or in the future. The charge off can remain on your credit report for 7 years with collection efforts via outside third-party collection companies or an in-house collection department haunting you for the duration of the 7 years.
The amount of the debt is not important, $50 or $50K, after 180 days of nonpayment the creditor can charge off the debt and report this negative activity to the credit bureaus. Charge offs indicate to current and potential creditors and lending institutions that lending you money is a highly risky endeavor and that they, potentially, will not be repaid. This has numerous long-lasting impacts on you and your credit worthiness. First, it will result in higher interest rates when applying for credit, if approved at all. Second, your current creditors may decrease your credit limits and significantly increase your interest rates on existing balances thereby costing you a lot more money during the loan period. More often than not lending institutions and creditors do not extend loans to people with even a single charge off let alone multiples.
Just because you have an inaccurate and unfairly reported Charge Off on your credit reports does not mean you have to live with it for 7 years. By investigating and communicating with creditors and credit bureaus, you may be able to improve the status of a questionable Charge Off or completely remove it from your credit reports.
Charge offs happen to the most responsible of us, sometimes unintentionally and you don’t know until it is too late, and it’s negatively impacting your life and finances. In exchange for paying the debt off, your creditor may be willing to stop reporting the account and must report the account as "paid in full". Through effective credit bureaus and creditors dispute procedures CaliCredit Repair can help you remove all inaccurate, untimely, misleading and/or unverifiable charge offs from your credit reports. However, in the event the charge off is being erroneously reported on your credit reports, CaliCredit Repair can dispute it directly with the credit bureaus in order to negotiate the removal or revision of erroneous charge offs.