You have a debt charge off on credit report and you are wondering whether you can get rid of the entry in an attempt to raise your credit score. Well, there is good news and bad news. The good news is yes the debt can be corrected but not removed and the bad news is it will take some time to do so. And the further bad news is that once the entry is corrected, it will be several months before you see a positive change in your credit score.
No doubt, you have heard it said that an ounce of prevention is worth a pound of cure. That statement is quite true in the area of your financial health. It is a lot easier to keep a debt from being charged off than it is to correct or remove the debt once it appears on your credit report. And while the credit bureau has an obligation to verify the information contained in your credit file, it is under no duty to remove negative information which it has verified to be yours.
Despite the ads by credit repair companies that they can remove such entries from your credit file, the truth is they cannot and even when they do, the debt will most likely reappear. So it is in your best interest to take a reasoned and legal approach to resolving the matter. What then can you do legally?
You can contact the creditor or debt collection agency and work out some type of compromise settlement of the debt. The debt collection agency as paid a reduced amount for the debt so it has room to work out a settlement of less than face amount. Usually, you are going to get the best deal if you can make a one time payment. If you have to make installment payments, then you will most likely have to pay a larger percentage of the face amount of the debt.
One critical matter of importance you should be aware of. Paying less than you owe on a debt will reduce your credit score even more. That means once you reach an agreement, you need to get in writing that when you pay the agreed upon amount the creditor or debt collection company will report the debt as “paid as agreed” rather than as compromised and settled.