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How To Remove Every Charge Off From Your Credit Report
Understanding charge off is
A charge off is a written-off debt that original credit had on your behalf and they sold it or wrote it off on their taxes. Most of the big institutions write off the debts on their taxes to get a tax break. When they do that, it normally creates what we call a charge off.
Therefore, in a nutshell, a written piece of debt that you once owed an original creditor and they decide to write it off on their taxes or send it off-sell to another collection agency is called a charge off.
There have been a lot of experts saying “Don’t remove chargebacks and don’t worry about chargebacks because it doesn’t hurt your score”. That might be true sometimes. However, it can hurt your qualifications for underwriting when it comes to getting approved.
When you want to get your 2020 BMW or get a 15000 credit card, those chargebacks are going to go into effect when it comes to getting you approved because underwriters hate chargebacks. Charge offs leave a trail that you are in a bad position with big loans.
Therefore, here are the best steps to help you remove charge offs from all your reports.
Ensure accuracy
The first step towards removing your charge offs is to ensure that everything within your credit report is 100% accurate, 100% timely and 100% verifiable. Make sure that a number, a letter, a word or a sentence, amount- everything on your credit report has to be 100% accurate. Look at the dates, numbers, names, everything and make sure that all is accurate, and it fits the description of you. You cannot how many people have inaccuracies on their credit report and they didn't know how to look for their inaccuracies and they just stay in their credit report for years.
The first thing is to look for those inaccuracies and make sure that everything is accurate in the report.
Submit hardship letter
A hardship letter is a letter you send to the credit bureaus explaining your hardship and they cancel the debt. A lot of hardship approval letters have been coming back from the collection companies and there has been a lot of debt removal because of Covid-19.
If you have suffered from Covid-19 in your finances or your health, this would be a great time to take as a blessing, not that you are going through it, but as an opportunity to send that information to the collection agency and tell them you cannot satisfy this debt because you are going through hardship.
When you send letters to the collection agency, ask them to put your debt under a 1099c and have the debt cancelled entirely. Remember, there’s software that allows you to remove any type of debt including charge offs. It has over 150 different dispute reasons for items like charge offs and it is completely structured to handle the dispute for you. The software does everything for you and you can use it on a one dollar-trial to start the process. Remember, it is very important to add the 1099c when sending out your hardship letter.
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Look for the Statute Limitations
The next step is making sure that statute limitations on that debt fit the criteria in your state. Once the statute limitations are up for that debt, by law they have to remove it. For instance, if you have that 7years old debt and the statute limitations for contracts is 7years, the company has to remove it.
Sometimes the debts stay there for8, 9 or even 10 years and they don’t remove it because you are not using the tools that are afforded to you by the FCIA to have those things removed.
Remember, when you make a payment to any type of debt, you start the statute limitations over. For example, if you have a 7 year Statute Limitations debt and you pay it on the 6th year, instead of waiting a year for the debt to get removed, you are going to be waiting for another 8 years because you just added another 7 years to the original date.
Make sure you are not paying into the debt, especially if the debt is old because you might hurt yourself by starting the statute of limitation date completely over.
Dispute the charge off
The other step to remove your charge off is disputing it. The best way to dispute the debt is using the 609 method. Never use a template. Always use original content that comes from your voice.
Inside the 609 letter, put the following into the description, asking for these items afforded to you by the law. The law stipulates that the creditors have to provide this information by law and if they don't; they have to remove it. These are the items that you have to request from the credit bureaus:
• Original contract- The original contract is the hard copy that you signed when you opened the account. It has your web signature, and that contract is very important and by law, they have to provide it when requested.
• Payoff disclosure- The payoff disclosure is in the contract and they are supposed to have it. A lot of times they don’t have this information because everything is sold. Once they sell the debt to another company, it’s sold digitally and they don’t have this information.
• Interest rate disclosure- This is to prove the interest rate that was disclosed inside the loan.
• Balance history- You want to ask for your payment history for the debt.
• Credit insurance
Most of the time if you ask for these items, 80% by chance the companies won't have them. By law, they have to provide this information failure to which they are supposed to remove the debt because they don’t want to be responsible for paying someone to look up this information.
They are not in the business of giving money out or paying into your debt. They are in the business of receiving money from your debt. If you are asking for all this information, it’s going to take them hours and hours of work and they have to pay for someone to do it. Sometimes, they feel it is not worth it.
Negotiate the debt
Another way to remove your charge offs is through negotiating the debts. Some clients negotiate and want their debts down. The companies have to take the debt down 40% 50% sometimes 60% because they bought it for pennies to the dollars so they don’t mind negotiating as long as they are getting some money on the backend.
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