How to Remove a Chargeoff Off Your Credit Report for Free

A charge-off is a debt that is deemed uncollectable and written off by a creditor, such as a bank or credit card company. A charge-off will typically appear on your credit history for seven years. It may be possible to have a charge-off removed from your credit report by negotiating a settlement with the creditor. Some creditors will not remove the debt from your Experian, Equifax and TransUnion reports, although it turns into a positive if they agree to change the status to "paid as agreed" rather than "settled," writes Steve Bucci, a columnist for Bankrate.com. Other creditors will remove a settled charge-off entirely. You might be able to have a charge-off removed without paying it if you have legal grounds for disputing it with the credit bureaus.

Instructions

1

Order copies of your credit report from the three major credit bureaus -- Experian, Equifax and TransUnion. All three sell credit reports through their websites; however, you can get free a credit report once a year from the annualcreditreport.com website, advises the Federal Trade Commission (FTC).

2

Review the charge-off entry on each of the three credit reports. The information should be similar, but each credit bureau collects data and produces its own report, so there may be some differences. Look for some type of error on each report, such as a wrong date for the charge-off or an incorrect account balance. Note each of the inaccuracies that you find. There must be at least one error on the credit report to justify a dispute.

3

Search your financial records for anything that proves one or more of the charge-offs is erroneous. A charge-off is usually reported if you stop paying on a debt for six months, and it will appear in your credit history for seven years. You may not have proof if a charge-off involves an older debt, but written evidence makes it easier to get the item removed.

4

Compose letters to Experian, Equifax and TransUnion asking them to remove the charge-off from your credit file. Explain the mistakes in detail. According to the Divorcenet legal advice website, all errors that you dispute must be investigated by the credit bureaus as long as the request is not obviously frivolous. Include copies of any records supporting your position, if available.

5

Send the letters to the credit bureaus' mailing addresses given for disputes, which appear on their websites. Disputing a charge-off costs you nothing, and you can expect a response in about 45 days. Credit bureaus have 30 dates to investigate your claims, according to the FTC. You'll receive a letter from each credit bureau advising you of the action taken on your dispute, and you'll receive a updated copy of your credit report. If a credit bureau determines that your dispute is valid, the charge-off will be removed from your credit history.