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Charge-offs are a big deal. This typically happens when you don't make a minimum payment for 180 days or more. Your creditor writes off the debt as non-collectable and then those aggressive collection letters, emails, and calls begin from a Collections Agency.
Don't be discouraged. There's hope!
Here is a client of mine whose credit score dropped to a 554 from a 713 because of ONE charge-off due to poor financial habits and loss of employment.
Charge-Off Example
The client is in a better financial position and offered to pay $2,000 of the $4,000 balance owed within 12 months, as long as the Collections company promises to update the status to 'paid' and remove it from all 3 credit bureau reports. They responded with an acceptance/offer of ~$1,700 if paid in 12 months with a promise to report as paid.
Negotiations WORK!
Here's the downside, negotiation letters ONLY work on an unpaid charge-off. If you’ve already paid the charge-off but it’s still on your credit report, you really don’t have any leverage to negotiate for a removal.
Schedule a consultation if you're in need of a strategy to tackle your charge-offs. You don't have to pay hundreds or thousands of dollars just to increase your credit score.
Disclaimer: I DO NOT REPAIR YOUR CREDIT FOR YOU nor AM I A CREDIT REPAIR AGENCY!
"I am in charge of my credit and will not allow a charge-off to shift my credit direction permanently." -Moni
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