How Do You Get Rid of Credit Card Charge-Offs?

A credit card charge-off means that the bank that issued the credit card has written off the debt because it does not expect to receive payment, even in the future. If you have a debt that has been reported as a charge-off, this is a big red flag for lenders who examine your credit report when you apply for any kind of credit, from a mortgage to a car loan to a credit card. Removing charge-offs from your credit history is one step you can take to improve your credit score.

Instructions

1

Get a recent copy of your credit report. You are entitled to one free copy from each major credit bureau each year; you can get them from www.annualcreditreport.com. Find any charge-offs on your credit report.

2

Ask your creditor to mark the account "paid as agreed" if you have paid the account and it is mistakenly annotated on your credit report as a charge-off. According to Steve Bucci of Bankrate.com, "paid as agreed" is not viewed negatively on credit reports, but most banks and credit card companies will not do this for you if your account has been charged off due to your own lack of payment.

3

If you have not paid the amount in question, pay as much as you can. Call the creditor to see if you can negotiate the amount, and document all negotiations in writing.

4

Request a "paid" or "settled" annotation for the charge-off. While this is not as good as a "paid as agreed" annotation in terms of its effect on your credit report, it is not as bad as a charge-off. Credit card companies and banks offer "paid" or "settled" annotations if you have negotiated to pay a percentage of the amount, but not the full amount owed.