What is a Charge-Off and How to Manage One?
Our credit counseling service company in Columbus has experience with charge-offs on credit reports and can advise you on how to manage them. A charge-off occurs when a debtor has not received payment on a debt for an extended period of time and decides to write off that debt because they anticipate that they will not receive a payment. The amount is written off as a loss and the account is closed to any future charges. What does it mean to a borrower to have charge-offs on their credit record?
Even with a charge-off, you are still responsible for your debt and the lender or a collection agency can continue to contact you for payment. They must still follow the limitations set by the Fair Debt Collection Practices Act. Beware of possible scams, particularly if you are unaware that you have charge-offs on your accounts. Charge-offs will still show as negative information on your credit reports. Our Columbus-based credit counseling services can help provide you with information about what’s appearing on your credit report and work to correct any inaccurate information.
If a charge-off is on your credit report, you will want to verify that this debt belongs to you. You will not be able to remove a charge-off that is legitimate, even if you resume payments, but you can dispute one that is in error. Initiate the dispute, notify the creditor, and provide all documentation such as proof of payments or statements. If the charge-off is legitimate, verify all of the information is accurate, such as amounts and account numbers. If you find inaccuracies, you can file a dispute with the credit report agencies. To resolve the matter, you still may be able to resolve the debt through agreements with the collector or work with our professional credit counseling services in Columbus, OH to restore your credit. To maintain a good credit rating, it’s imperative not to consider a charge-off as the same thing as being “written off.” Restoring your credit takes time and energy, but improves your chances of being approved for a loan or mortgage and getting a better interest rate.
To learn more about what a charge-off is on your credit report and how to resolve it, contact Columbus’ most trusted credit counseling services at People First Credit Restoration.
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During the credit restoration process, we will provide you with information and the education you need to continue raising your credit score.