As you know, your credit score impacts many different areas of your life, so doing what you can as a consumer to help ensure you keep your score respectable is critical. However, if you find that a charge-off is impacting your credit score, you may wonder what this means and how to remove it from your score. The following blog explores what you should know about these matters and why working with a San Diego consumer lawyer is important if you need to dispute information.
What Is a Charge-Off and How Does it Impact Me?
As a consumer, you are responsible for repaying debts and ensuring you are on top of payments owed to others. When you open a credit card or take out a loan and do not make payments as necessary, your account can be considered delinquent. After your account has remained in delinquent status for around 120 days, the creditor may charge it off. The inclusion of charge-offs on your credit report can have negative impacts on your credit score, as payment history is the largest factor in credit scores. Additionally, a charge-of will remain listed on your credit score for seven years.
This essentially means that the creditor considers your account a loss and will likely sell it to a debt collection agency for pennies on the dollar of what you owe.
Unfortunately, many assume that a charged-off account means they are off the hook for paying. However, this is far from the truth, as the debt collection agency will still pursue the funds they are owed. It’s also important to understand that the collection agency may take all necessary steps to get the money you owe, which could include filing a lawsuit against you for the funds.
Can I Remove This From My Report?
It’s important to understand that if the charge-off on your report is valid, you will not be able to remove it from your account. However, there are circumstances in which you can work with the creditor in an attempt to remove the listing. You may be able to work out a pay-to-delete agreement in which you pay the account in full and the creditor removes it from your report. It is imperative, however, to consult with an attorney before pursuing this method to ensure you have everything in writing to ensure the creditor holds up their end of the deal.
You may be able to remove the charge-off from your account for free if it is incorrect. For example, if you find inaccuracies regarding the account or it should not be included on your report for whatever reason, file a dispute with the credit reporting agency to have the incorrect information removed.
As you can see, these options can be incredibly difficult to navigate on your own, which is why it’s in your best interest to connect with an experienced credit reporting error attorney. At Barthel Legal, we understand how difficult these matters can be to navigate, which is why we are here to assist you. Connect with us today to learn how we can help if you wish to negotiate with creditors or believe the charge-off on your report is the result of an error.
