Nearly anyone who has taken out credit or incurred a debt has had that activity logged on a credit report by one or more companies, known as credit reporting bureaus. These companies are responsible for keeping track of an individual's borrowing habits and recording them. If a creditor charges off an individual's purchase, he may report this charge-off to a credit reporting. Even if the charge-off is later paid, the record of it remains on the report, in New York as in other places.
Credit Reports
A credit report consists of a list of debts that an individual has taken out and when he has paid them back. If an individual has a debt remain outstanding for too long, then the creditor may write it off---also called charging it off---as uncollectable. If the creditor reports this action to a credit reporting bureau, then it will be listed on the person's credit report, causing his score to decline.
Charge-Offs
If a charge-off is recorded on a person's credit report, then his score will drop, as the fact that he did not pay back a debt makes him appear less creditworthy. However, if the person does pay off the debt at a later date, the creditor may report this payment to the credit reporting bureau. This late payment will cause the person's score to rise, although it will still remain lower than if he had never incurred the charge-off.
Suppressing Charge-Offs
A person cannot suppressed a charge-off, whether in New York or in any other state. Credit reporting bureaus will not remove an item on a credit report unless it is factually incorrect. For example, if a person did actually pay back a debt, but the report lists the debt as being charged off, the bureau would fix this. However, the person cannot have the record expunged if the debt was in fact charged off.
Expiration
A charge-off will must only removed from a person's account when the credit reporting bureau is legally required to remove it. This happens according to federal law, which requires that all negative information---except for the listing of bankruptcies---be removed from a person's credit report after seven years, at which point it can no long affect a person's score negatively. This seven-year period begins on the day the record was last updated.
0 comments:
Post a Comment