Can I Remove A Charge Off From My Credit Report Myself?

Ever wonder how you can remove a pesky charge off from your credit report? If so, you have undoubtedly been through a great deal of turmoil financially in the recent past. You've missed a few bill payments, probably for a few months in a row. And currently, collection agencies are constantly calling or mailing you. Sound familiar?

Well, you're in luck. The truth is, you can remove charge offs among others and raise your credit scores considerably even if you have been a little less than perfect with your finances. In this article, we'll take a good, hard look at what a charge off is and show you two specific ways you can have them removed from your credit report for good...

What Is A Charge Off And Why Is It In My Credit Report?

Of all the negative credit items you can have on a credit report, charge offs are one of the most damaging to your credit history. Simply stated, a charge off is a loss written off by your original creditor after a certain time period (usually 180 days) from your last full payment. Late payments of 30,60, or 90 days are common, however, after 180 days without a payment, your creditor will most likely claim your account as a loss, turn it over to a collection agency, and put a “charge off” entry on your credit report.

You should know, your potential lenders pay very close attention to these entries. So removing charge offs from your record is imperative if you want to qualify for loans or mortgages in the near future.

What Steps Can I Take To Get These Charge Offs Removed?

The first step is to take a good look at your credit report and make note of the date of your last activity. Find out exactly when the charge off was listed in your record. There's a good chance that the statute of limitations on your creditor collecting that debt may have expired if the record is older than 7-10 years. To determine the expiration date, you'll need to do a little investigating in the Fair Credit Reporting Act. For example, a credit card charge off may remain on your record for 7 years, while a bankruptcy can remain for 10 years. What that means is, writing a simple letter to the credit bureaus and notifying them of the expiration date may be enough to get the charge off deleted from your records.

Unfortunately, if your charge off is more current, you'll have to do a little additional work to get it off your credit report. Talk with your original creditor and make an offer. This is commonly known as a "pay for delete", where you offer to pay off the account at a reduced rate. In return, they agree to remove the charge off from your credit report.

But know this ... unless you are an accomplished negotiator, this offer will come with a little resistance. You see, some lenders (like credit card companies) must notify the credit bureaus of any derogatory or negative information they have on you. Therefore, they may not be open to removing your charge off altogether and instead, change your account status to “closed.” That's more favorable than a “charge off paid” indicator, but still not a complete removal. At this point, it's up to you if you want to compromise or stand your ground. It depends on your current financial situation and for which type of loan or job you want to qualify for in the next few years. Whatever choice you decide to make, you need to be sure to get the pay/delete agreement in writing first before making any payment and check your credit report again afterwards to make sure they removed the harmful listing.

How Should I Begin?

You should really start by reading and learning the Fair Credit Reporting Act and the Fair Debt Collection Practices Act before trying to remove negative credit from your file. Get a decent understanding of your rights as a U.S. citizen and how you can use them to your benefit. Next, you should realize that every state has it's own laws concerning debt. You want to find your state's specific statute of limitations on debt collection.

Make sure you keep yourself educated in credit repair in general, as federal laws change all the time. Finally, make absolutely sure you discipline yourself to pay your bills promptly, use credit wisely each month, and actively build your credit as you go.  Removing charge offs is important to improving your credit score, but remember it's only one step in the overall process.