Improve Credit Score After Charge-Off
A charge-off on your credit report leads to a HUGE drop in your credit score. Some experts say that if you remove a recent charge-off from your credit report, you can see an INCREASE in your credit score of up to 150 points!
As long as the charge-off isn’t paid, the creditor can still try to collect on the account as well as have the right to sue you, until the statute of limitations runs out.
1. Talk To Your Creditor ●
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Talk to the creditor and negotiate to remove the charge-off if you can pay the debt . Once you reach an agreement, get it in writing! Never send money to a creditor or a collection agency without having the agreement in hand.
1. Paid For Deletion ●
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Make it clear that you want them to remove the tradeline from your credit report and you want a Paid for Deletion letter. If you can’t pay the full amount immediately, talk to the creditor and let them know that you are willing to set up a payment schedule.
Other statuses Sometimes no matter what, the creditors will not remove the statuses themselves. You will want them to list the status as either Paid or Closed. It is still a negative mark on your credit report, but it will not stop you from getting a home loan.
1. Validate the Charge-Offs â—? Start dispute process. â—? Find errors on your credit report.
Just keep in mind that even if the debt gets removed, it may come back. If the debt is truly yours and the creditor provides the proof, it can be put back on even if it’s been removed before. Credit reporting agencies will send you a letter 5 days before they put it back on your credit report, to let you know that the debt has been re-verified.
Hire A Professional Contact a professional credit repair agency that can have the charge-off removed on your behalf. The agency knows how to get the job done and in most cases, they can get a charge-off removed much faster and for less money. Just make sure they have a debt settlement process.
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