Discover How To Remove Charge-offs From Your Credit Report Today!

There is a great deal of confusion with consumers about how to handle a href=http://creditrepairmike.blogspot.com/ target=_blankcharge offs/a on a credit report. It is well known that charge-offs are considered to be negative credit but what is the best way to handle it? Do I pay off this bad debt? Do I not pay off this bad debt? br /
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Well the answer may confuse you as for both questions is “yes”!br /
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The term “charge-off” just refers to a debt that the lender has been unable to collect. Often they will give up trying to collect the debt and refer the bad debt to a collection agency. Many times this makes it worse for the consumer as both the original debt owner and the collection agency report the bad credit. This makes 2 negative marks on the credit for just one account. br /
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An old charge-off will stay on your credit report for as many as 7 years. It is possible to get an old charge-off deleted from your credit report but a “paid charge off” is easier to remove than an “unpaid charge-off”. However an unpaid charge-off will drop off your report after 7 years but if you pay off the bad debt it will bring it current again and begin the 7-year cycle all over again and the bad debt will stay on your credit for an additional 7 years beginning from the time you paid it off. It is a catch-22 situation. You have problems either way. br /
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So what is the best way to handle this situation? Well before you pay off the old debt make sure that you get an agreement in writing from both the original debt owner and all of the collection agencies that says that once the debt is paid they will delete it from your credit report immediately. This technique is referred to as a “pay for delete” and it is the most effective way to pay off an old charge-off. br /
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Many people are not aware that they have the right to dispute bad credit shown on their credit report. The Fair Credit Reporting Act states that any consumer can dispute any bad debt on his or her credit report and this means charge-offs, collection accounts, tax liens, judgments, repossessions and even bankruptcies and foreclosures. You can dispute these things and get them removed yourself or you can hire a professional credit repair agency to help you. br /
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You can dispute items on your credit report by contacting the consumer reporting agencies that are reporting the bad credit. You can call them, write them or even contact them online, however, the best way is to write a formal letter so that you have a paper trail. Make sure that each agency receives the same letter and make sure you keep copies with all documentation. The credit agencies will have 30 days to investigate so make sure that you keep track of the dates. br /
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The credit agencies are required to follow up with the original debt owners and any a href=http://www.squidoo.com/creditrepair23 target=_blankcollection agencies/a. They are also supposed to look at the public records on your accounts. Make sure that you follow up with them after the 30 days is up to see that they are working with you. Credit repair can take some time but it is sure to take even longer if you are not following up with your own requests. br /
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While it is possible to repair your credit on your own a professional credit repair company has developed the knowledge and expertise to expedite the process. Since a professional can do it faster and easier it may be worth your time to consult with them first to see if they can help you.br /
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Find practical tips in the sphere of a href=http://www.freetrafficsystem.com target=_blankFree Traffic System/a - welcome to your individual knowledge base.