Hittrafficer.com

If you have a charge off it will cause your credit score to be lower. A charge off happens when an account is not paid on for 6 months.

In order to remove charge offs from your credit report you must dispute the listing with the credit bureaus. This is done by sending a credit repair letter to the credit bureaus.

In your credit repair letter you should explain why the listing is incorrect. For example the account has never been paid late, it’s not your account or information is wrong.

Our credit system is flawed and you are assumed guilty until you can prove otherwise. It is common for incorrect information to show on your credit history.

The Fair Credit Reporting Act was passed by congress in response to incorrect listings being reported. This piece of legislation states that any incorrect or unverifiable listing must be removed by the credit bureaus.

It is also common for one charge off account to become many negative listings and ruin your credit score. Let me explain what happens to an account once it is charged off.

The original lender will take the outstanding debt and will sell it to a collection agency. This collection agency will try to collect on the debt. If they are unsuccessful they will be able to create a negative listing on your credit report.

Then the collection agency will turn around and sell your debt to another collection agency. This new collection agency will be able to report a negative listing if they are unsuccessful in collecting payment.

This process will continue dependent upon the size of the account. So one account can become many negative listings and ruin your credit score.

If you have many negative listings it will cause your score to go way down. It will also be difficult to get approved for new lines of credit.

I recommend disputing the charged off listing before you take steps to pay it. This is because just by paying the charge off does not mean it will remove all the negative listings.