How to Erase Charge Offs From Credit Report

Charge-offs hurt credit scores because they show that the debtor reneged on a credit agreement. Original creditors close accounts and list them as charge-offs after payments are past due by about three to six months, according to MSN Money. Credit scores drop significantly as the debtor misses payments and again after the charge-off appears on his credit report. There are few options for removing a charge-off.

Instructions

1

Visit AnnualCreditReport.com to obtain a free copy of your credit report. Read the report to find the charge-off. Note contact information for the charge-off creditor as well as the date of last activity, such as the date the charge-off first appeared on the credit report.

2

Compare the date of last activity against guidelines in the Fair Credit Reporting Act, a federal law. The law prohibits charge-offs from appearing on credit reports for more than seven years from the date of last activity.

3

Erase the charge off by writing a letter to the credit bureau requesting removal -- if the notation is outdated because it is more than seven years old. Send a letter to the credit bureau at its address on the credit report. Or follow options included on the report for disputing the charge-off by telephone or mail.

4

Contact the original creditor to ask if it will erase the charge-off if it is not more than seven years old. Offer to pay the full amount owed if the creditor agrees to erase the charge-off from your credit report -- an agreement known as "pay for delete." Participation by creditors is optional and creditors may not agree. Get pay-for-delete agreements in writing before paying the charge-off