Charge Offs - Do Not Just Pay Them
Charge offs are detrimental to a good credit score. They occur when an account becomes delinquent for 6 months.
In order to remove charge offs from your credit report you must dispute the listing with the credit bureaus. This is done by sending a credit repair letter to the credit bureaus.
In your credit repair letter you should explain why the listing is incorrect. For example the account has never been paid late, it’s not your account or information is wrong.
Unfortunately when it comes to reporting on your credit report you are guilty until proven innocent. Meaning it is common for incorrect information to be on your credit report.
The Fair Credit Reporting Act was passed by congress in response to incorrect listings being reported. This piece of legislation states that any incorrect or unverifiable listing must be removed by the credit bureaus.
It is not un-common for one charged off account to result in many negative listings and a ruined credit report. Let me show you the process of what happens to a charged off account.
The original lender will take the outstanding debt and will sell it to a collection agency. This collection agency will try to collect on the debt. If they are unsuccessful they will be able to create a negative listing on your credit report.
Then this collection agency will sell your debt to another collection agency. The new collection agency will also have the authority to create a negative listing if they can not recover payment.
This process will continue through any number of collection agencies. It depends upon the size of the delinquent account. You can see how one account can ruin your credit score and turn into multiple negative listings.
If you get multiple negative listings your credit will be in bad shape. It will become extremely difficult to get approval for any new lines of credit.
In sum I encourage you to dispute the listing before you make payment. I would do this because making payment does not guarantee the listing will be removed.
Related posts:
- LVNV Funding - How to Remove From Your Credit Report LVNV Funding is a purchaser of debt. They purchase debt...
- NCO Financial - How to Remove From Your Credit Report NCO Financial is a collection agency. They collect for retail,...
- Credit Card Judgments - Remove from Credit History When you see a civil judgment on your credit report...
- Palisades Collection - Delete Them from Your Credit Report Palisades Collections is a collection agency. They are a subsidiary...
- Major Credit Bureaus - Learn the Cold Hard Facts about Reporting A common concern for people is "how long will a...
Related posts brought to you by Yet Another Related Posts Plugin.