A charge off can be removed by disputing the mark. This must be done directly with the credit bureaus.
When a dispute is filled it is your way of saying this mark is not accurate. There are two ways to dispute a charge off.
1. Write a dispute letter
This is done yourself. In this letter you simply identify the charged off mark and provide a reason for its inaccuracy. Reasons can include; not my account, account paid in full, item is out of date.
Once your dispute letter is deemed valid the bureaus will conduct an investigation. They will contact the creator of the charge off (often a credit card company) and verify the amounts and that the account does exist.
2. Hire a credit repair service
This method you simply identify what marks you want to dispute and then the company will do the rest. I suggest this method if you have multiple negative marks on your credit report.
Many of these companies have credit lawyers on their payroll. This can be very beneficial to have on your side.
These experts know all the ins and out of credit laws. Frequently they use case precedents or loop holes in the laws to have a negative mark removed.
In addition credit repair firms are able to use advanced dispute techniques to remove stubborn negative marks. These techniques include; debt validation, escalated dispute information requests and creditor direct intervention.
A charge off that is not disputed will remain on your credit report for 7 years. It is often a result of an unsecured credit card that goes unpaid for 6 months.
The lender will “charge off” your account. This means they will have a tax write off. Your account will then be sold to a collection agency and they will be able to create a negative mark on your credit if they are unable to collect payment.
In addition this agency will be able to sell your account again; this can create a trail of negative marks on your credit report. Thus if you have a charge off you should give it immediate attention so it does not become multiple marks. The number of times your account is sold depends upon the size of the debt.
In sum, a charge off requires immediate attention so it does not become many negative marks on your credit report and ruin your score. This mark can be removed and before seven years expires.
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