When reviewing your credit report, understanding the impact that negative information can have on your report is critical. Though you might know how late payments or bankruptcy can impact your credit score, do you know how a charge-off can affect your credit? If you’re unsure what a charge-off is or the impact it can have on your credit score, you’ll want to keep reading. The following blog explores what this means if you can have it removed from your credit report, and when contacting a Los Angeles, California credit report lawyer may be in your best interest.
What Is a Charge-Off?
If a charge-off appears on your credit report, it means that an account in your name remained delinquent for so long that the creditor closed the account and considers it a loss. However, this does not mean you are no longer responsible for paying the money you owe. When an account is charged off, you’ll find that it may be sold by the original creditor to a thrid-party debt collection agency. As a result, you’ll find that you may be held liable and subject to lawsuits by the collection agencies for the owed money.
A charge-off can have a serious impact on your credit score, remaining on your report for seven years. How much it will reduce your credit score will depend on your financial circumstances, as your payment history makes up 35% of your credit score. Regardless, you can expect it to have a somewhat drastic impact on your circumstances.
Can I Remove This Information?
When negative information impacts your credit score, you’ll find that it can influence many different areas of your life. For example, you may find that you are subject to loan denials, increased interest rates, and reduced credit lines. Unfortunately, if the information regarding the charge is accurate, there is not much you can do other than wait for the seven years to elapse so the information can fall off your report.
If it is impacting your life, however, you may want to consider a pay-to-delete negotiation. Essentially, you can work with the creditor to pay off the owed debt in exchange for having the charge-off removed from our credit score. If you want to consider this option, it is critical to first consult an attorney to ensure the creditor will hold up their end of the deal and remove the charge.
Finally, if the information regarding the charge-off is incorrect, you may wish to dispute its inclusion on your credit report. If the credit reporting agency does not remove this incorrect information, however, you’ll find that working with an attorney is imperative to fighting for our rights in these matters as a consumer.
If your credit is impacted by a charge-off, understanding your legal options is critical. That’s why the team at Los Angeles Legal Solutions is ready to assist you in these difficult times. We understand that you want to do everything in your power to kee your credit score high, which is why we can help you explore your options. Contact us to discuss your circumstances with a member of our firm today.
