What should I do about charge offs on my credit report? Should I try to pay it down or just let it sit there?

Answer 1

once you put an activity on an account it can stay there for 7 more years from that date. so if it is already a charge off you are better off letting it sit until its gone. if you pay it off it will look better that it is paid but it will still be a negative mark as the status of charge off will only change to paid charge off. still bad.

Answer 2

Well first off make sure the charge offs are really yours by getting a copy of your credit report. If any information within is incorrect, contact the credit bureau and make corrections. Corrections can take up to 45 days to reflect your report and score. But, the bureaus only have 14 days to respond to your dispute. Now my advice on legitimate debts you owe is to establish a relationship with your creditor to keep the account from being processed through courts. If you can make minimum payments on time keep doing that. The problem with acting as if the debt doesnt exist is that many separate charges as well as intrest can accrue all at your expense. Like, overlimit fees, late fees, as well as your regular minimum payment all added together per month. Your creditor WILL make a deal! Why? Its cheaper than due process! And, with "Bankruptcy" as the next option to paying the debts, creditors likely get nothing. They will make a deal that fits your budget. Try not to ever settle a debt!! Why? Because even though your credit is rocky at this point, settled debts ultimately mean you didnt meet your end of the deal when you established credit with any one particular creditor you agreed to be 100% responsible for the debt and any charges that may come about due to the debt going into collection. Pay the debts! It may seem like a long road, but there is a way out. Minimum payments make the primary balance almost stay the same for a long long time depending on the intrest accrued but the outcome is that you fullfilled your agreement in the end. Dave

Answer 3

Call the company, and try to make an arrangement. Once you have, then that will reflect on your credit report. I did the same with a credit union. It wasn't a lot at the time, but I paid them $10 every two weeks, and after a year I was able to refinance my car with them. I went from 19% to a 9% loan.

Most companies would prefer to get their money, and you are motivated to clean up your credit report.

Answer 4

Paying the charged off debts will NOT restart the reporting period. Negatives fall off your credit report 7-1/2 years from the default date.

Contact the newest one and work backwards. Make a settlement arrangement. You might be able to settle for less than the full amount (the older the debt, the smaller the settlement), but the creditor is going to want lump sum payment.

Any payment arrangements will have to be larger amounts over short time frames. They won't take small payments and string it out for years.

Be sure to get any settlement arrangements in writing and do not let them have access to your bank accout.

Answer 5

well you decide. Either way it will show on your credit report for 7 years. Only difference is if you pay it it will show even through it was charged off but you still took care of it and if you don't pay it a all it show you didn't even attempt to pay it at all. So paying is better it will help your score little bit but either way it won't go away completely

Answer 6

If you owe the money you need to pay them. If it has been charged off - many times you can call them and get them to take a settlement for 40-60% of the total amount - but you have to have the $$ to send them once they have sent you the settlement amount in writing.

If you are planning on buying a house you cannot get a mortgage until all collections are paid in full - better to take care of it now.