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A charge off is something with a negative impact on your credit score. When a charge off is documented in your credit report, you credit rating will be affected for at least seven years. Charge off creates harm to your credit score. It will definitely go down. Just one charge off is enough to do damage your credit score because it will give you difficulties in securing future loans. If you have the capacity to pay the charge, you might as well do it immediately. Before paying, discuss with your creditor your desire to pay the amount, if it's possible to just pay a minimum amount to avoid the charge off. Imply to him how you are struggling/finding difficulty to make the payment but insist/persist that you would really want to settle the charge. He might even agree to make a compromise on the amount and that could be wonderful if you settle the charge at a lower amount. Negotiate with the lender if you can just pay a lesser lump sum or arrange a scheme where you can make easier monthly payments. While negotiating, you must ensure that the lender will erase the charge off from your credit report. Put everything in writing once discussion is done and you have arrived to a compromise. Once the charge off has been paid, you may now make a written claim to the credit bureau to dispute the allegation and erase the negative finding from your credit report. Give a duplicate of the dispute letter to the creditor who issued the negative finding to the credit bureau. Emphasize the disputed bad entry to be removed to avoid confusion. The credit bureau shall investigate the matter within 30 days from receipt of the letter. The credit bureau shall inform the matter with the creditor who submitted the negative finding and ask them to reply if they agree or do not agree with the dispute. If the credit agency failed to validate the dispute within 30 days, the charge off shall then be removed from the customer's file. There are times when there was no confirmation of the dispute, the credit bureau fails to remove the charge off from your credit report. You must be persistent enough to pressure them to remove the bad finding from your credit report because they failed to validate the dispute. After the deletion of the charge off, you will notice the improvement on your credit rating.
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