Q. Will paying a charge off remove it from my credit report?
Paying an old charge-off will not remove it from your credit reports. It will be listed as an updated “Paid Charge-Off,” which, although it is slightly better, is still a black mark on your credit.
A charge off, whether it is paid or not, remains on a consumer’s credit reports for seven years. The time limit is based upon the date of the original delinquency (i.e. when first payment is missed and never again became current), and not the date of the last activity.
Some debtors may be able to negotiate with the creditor to have the item removed from the consumer’s credit reports in exchange for partial or full payment. This can only be done directly with the creditor, and not with an outside collection agency or credit bureau.
This is a tricky strategy. I had an affordable law firm remove my paid charge offs – rather than do it myself.
It all depends upon the amount of the debt and settlement offered, the age of the item, and the creditor’s policies. Make sure that if you do attempt to handle things yourself that you do everything in writing (keeping copies), and be sure that the individual you are dealing with has the authority to grant your request.
If you feel you are getting the runaround, contact the professionals at Lexington Law at 800-594-5277. They will be able to cut through the red tape and the frustrations of handling it yourself.
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