3 Ways to Successfully Remove Charge-Offs from Credit Reports!

Hey, Credit Heroes. Charge-offs are one of the most unpredictable and damaging items that appear on a credit report. So today I am gonna share three fast removal methods and give you the best tools to get the job done. So you better stick around.

So the big question is this, how can we take our passion for helping people with their credit and turn it into a successful business without taking loans, without spending a fortune by bootstrapping it from nothing so we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets.

Okay, if this is your first time listening to my podcast every week, I give credit repair tips and advice on bootstrapping your business from nothing. So be sure to click subscribe now and get ready to start changing lives. Okay, let's get into this. Charge-offs are one of the most unpredictable and harmful items that appear on a credit report. They damage your relationship with lenders. They make it difficult to get approved for lines of credit. And the impact of a charge-off depends entirely on your overall credit history, your payment history, and additional personal factors. So there isn't just one foolproof process to remove them, but there are three methods that do work consistently, and all they require are patience, persistence, pressure, and the right dispute letters to get the job done. Here's how this relates to us. For anyone new to credit repair, a charge-off is a financial term used to describe a debt that a lender has given up trying to collect.

Charge-offs typically happen when a borrower fails to make payments for an extended period of time between 120 and 180 days. But charge-offs also happen even if payments were being made, for example, if the payment just didn't meet the monthly minimum and the account became delinquent, or if the borrower files for bankruptcy. Charge-offs are long-term problems. They live on credit reports for seven years from the date of the first missed or late payment on the account. Their impact varies wildly depending on the circumstance, but just one charge-off can drop a score anywhere from 50 to 150 points, making them one of the most unpredictable and dangerous items in all of credit repair. Considering the charge-offs give your payment history a black eye, hurt your credit utilization and force you to deal with debt collectors, credit heroes need to treat their removal as one of the most important things to focus on.

Here's the thing to remember. When a charge-off happens, the lender writes off the debt as a loss on their financial statements. Sometimes they attempt to collect the debt themselves, but usually, they sell it to third-party debt collectors for pennies on the dollar, or they lease that debt to a debt collection firm. But no matter who owns the debt, you still have the obligation to repay it even if the original creditor is no longer involved. You owe whoever acquired that debt even if you remove it from your credit report. So it's important to remember that technically you still owe that debt and they can sue you for it. Now, if you pay off the debt tied to the account before the seven-year clock is up, it's gonna show as a paid charge-off on your credit report. Paying off the account might help to improve your scores, or it might make lenders more likely to approve you for credit in the future, but that's not guaranteed.

From a credit scoring perspective, what matters most is how recently the charge-off happened, and if it was recent. Removing that charge-off from your credit report is a high priority no matter what the repayment status is. Here's why this is important. Your creditor is paying taxes on the debt that you owe. Your debt is an asset to their company, so when you don't pay, they lose money, and when they're forced to hang onto the debt, they lose even more money. This is why in many cases, creditors are willing to negotiate a settlement on a charge-off debt because it's in their best interest to receive some payment rather than none at all. Here's what you need to know. It's best to avoid charge-offs whenever possible, but if you're stuck with them, here are three removal methods that work and all it takes is patience, persistence, pressure, and the right dispute letters to get the job done.

The first method sends standard dispute letters directly to the credit bureaus requesting verification of the debt and the removal of any unverified items or factual errors from the credit report. We call these first letters round one. Regardless of the type of account, the bureaus are required to contact the furniture that reported your information and verify the debt. After contacting the furniture, they only have 30 days to respond. If they don't respond in time, the items you disputed are deleted automatically, boom, boom. The second method, challenge the charge off with the original creditor using section 312 of the Fair and Accurate Credit Transaction Act or send a validation letter to the debt collector directly requesting that they prove that the debt is accurate. If the bureaus or debt collectors do not respond appropriately, or if they respond with a stalling letter, you may need to request a reinvestigation demand to know their method of verification or send them a warning letter if necessary.

If you don't have the round one validation reinvestigation method of verification and warning letters that I'm talking about, you can download them all for free at creditrepaircloud.com/dispute-letter-templates. I'll also put the link over there in the show notes. Now, this process does take time, but if you've done all this and you still don't have the result that you want, you may wanna file a complaint with the C F P B, the FTC, or your State Attorney General, or consider bringing in an F C R A attorney to advise you further. Now, if the debt is verified and validated, you're really left with only one option. The third method offers the lender or debt collector a pay per delete negotiate to have the charge-off removed from your credit report. In exchange for paying off the debt, you can try to offer partial settlement in return for the deletion of the account, but most debt collectors will want the full payment.

This method tends to be successful because it's a win-win situation for you and the creditor. Your debt is paid and the charge-off is deleted. Just make sure you get proof of the agreement in writing before moving forward. Here's my final point. Charge-offs are unpredictable, damaging, and a pain to remove from credit reports, but don't let that discourage you. Patience, persistence, pressure, and the right dispute letters will get the job done. And just a reminder, this podcast is brought to you by Credit Hero Score. Credit Hero Score is the only credit monitoring service that integrates directly with Credit Repair Cloud. Get instant access to your credit reports and scores by signing up for a seven-day trial for only $1. Sign up right now at creditheroscore.com 

And now, for my favorite part of the episode, every week I feature one of our credit heroes inside our credit Repair cloud Facebook community so that you can see firsthand what real people are doing as they run and grow their businesses.

And today's spotlight is on Mera Sotello. Mera posted a Yahoo article, and I had to do a double take when I realized she posted an article about herself, the headline read, Mera Sotello, founder of Unique's Financial Freedom, is Rebuilding Lives through the Power of Personal Credit Repair. It's a fantastic article and everyone should read it. Merriville added a comment to her post reminding all of us, anything we put our minds to is possible. Let's not stop at one happy client. Let's make it a legend. Let's make it a lifestyle. Amazing work. Me, I'm so glad that you're thriving and changing lives through credit repair, and I can't wait to read more articles about you. And I'll end by saying, if you don't already have a Credit Repair Cloud account, check it out. It's the software that most credit repair businesses in America run on. Just sign up for a 30-day free trial at creditrepaircloud.com/freetrial. 

And if you'd like to change lives and grow your own credit repair business, check out our Credit Hero Challenge. It's a live experience that has helped tons of credit heroes to get certified in disputing and to gain confidence as they run their credit repair business on a solid foundation so they can change a lot of lives and make a great living in the process. We're starting the next challenge very soon. So you want to join before the doors close, or you're gonna have a long wait until the next one. So sign up right now at creditherochallenge.com. If you're finding value in the things that I share on this podcast, click below to subscribe and follow. Also, gimme a five-star review, gimme a thumbs up or share the show and help me to change more lives. If you'd like to read the show notes, they're posted on my blog. If you have a question or a comment, drop it down below because I read each and every one of them. I would love to hear from you and I'll respond as soon as I can. If you wanna learn more about removing collections from credit reports, check out my episode. Proven Tactics for Deleting Collections. So take care of Credit Hero and keep changing lives.

Hey everybody, it's Daniel again, and really quick, I'd like to invite you to join what I believe is the best thing we have ever created inside the Credit Repair Cloud community. And it is a challenge that we call the Credit Hero Challenge. If you're just planning out your business or you're just getting it started and you dream of having a successful business of your own so you can quit your nine-to-five and fire your boss and have financial freedom or so, you can add another revenue stream to your existing business. If that's your dream, you need to get into this challenge. We created this challenge to help you to create and launch your very own credit repair business to build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics, and all the things you need to be successful at credit repair. It really is the greatest thing we have ever built, and it will change your life. So I recommend you do it right now. Stop everything, pause this audio, go online and go to creditherochallenge.com. That's creditherochallenge.com and join the next challenge. And there's a challenge that's starting in just a few days. So go get started right now at creditherochallenge.com.