Chane Steiner asked:
When it comes to credit report charge offs, there seems to be a lot of confusion amongst consumers. ‘Charge-off’ is just a term lenders use to classify non-performing assets for tax purposes. However, that does not dismiss or relieve the consumer of the debt. Lenders report charge-off to the credit bureaus to reflect your payment history. Depending on the lender’s policy, their next step is usually to sell the loan to a collection agency.
If the collection agency decides to report the collection account to the bureaus, which they usually do, you now have two negative marks on your credit report from one account. These accounts can be reported for 7 years from the date of last activity. Such accounts can destroy your credit and prevent you from getting just about any type of loan. They can even prevent you from getting a job or an apartment.
Did you know that even a “paid charge-off” on your report is considered negative? This is probably the most confusing to consumers. Most people try to repair their credit by paying off old debts; assuming that they will be removed from their credit reports. The truth is, paying off old charge offs can make the negative account remain on your credit report for even longer!
It’s unwise to pay off old debt without first getting an agreement in writing from the creditor reporting the account. The agreement should state that once the debt is paid, it will be removed from the credit report immediately. This credit repair technique is called “pay for delete”.
You can also dispute charge offs and other negative items on your credit reports. This is done by sending a dispute letter to the bureau that’s reporting it. Credit bureaus are notorious for not cooperating with consumers. Fortunately, there are credit repair services that know the law, know their tactics and are willing to fight for consumers.
Antonio
When it comes to credit report charge offs, there seems to be a lot of confusion amongst consumers. ‘Charge-off’ is just a term lenders use to classify non-performing assets for tax purposes. However, that does not dismiss or relieve the consumer of the debt. Lenders report charge-off to the credit bureaus to reflect your payment history. Depending on the lender’s policy, their next step is usually to sell the loan to a collection agency.
If the collection agency decides to report the collection account to the bureaus, which they usually do, you now have two negative marks on your credit report from one account. These accounts can be reported for 7 years from the date of last activity. Such accounts can destroy your credit and prevent you from getting just about any type of loan. They can even prevent you from getting a job or an apartment.
Did you know that even a “paid charge-off” on your report is considered negative? This is probably the most confusing to consumers. Most people try to repair their credit by paying off old debts; assuming that they will be removed from their credit reports. The truth is, paying off old charge offs can make the negative account remain on your credit report for even longer!
It’s unwise to pay off old debt without first getting an agreement in writing from the creditor reporting the account. The agreement should state that once the debt is paid, it will be removed from the credit report immediately. This credit repair technique is called “pay for delete”.
You can also dispute charge offs and other negative items on your credit reports. This is done by sending a dispute letter to the bureau that’s reporting it. Credit bureaus are notorious for not cooperating with consumers. Fortunately, there are credit repair services that know the law, know their tactics and are willing to fight for consumers.
Antonio
