Should I Pay Charged-Off Accounts on My Credit Report?
Most people these days are well aware of the importance of their credit report and score. In years gone by, many were not that bothered about this because it didn’t seem to have that big an impact on their financial futures. However, since the global financial crisis of 2008, having damaged credit has made life very difficult for those who want to get any form of finance in the future, as lenders are far stricter with regard to eligibility these days.
With this in mind, it is vital that you keep a close eye on your credit file and score, and that you take steps to try and achieve and maintain a good credit score. This can impact everything from your ability to buy a car or home to your ability to rent a home or get certain jobs in finance industries. There are lots of things that can have a negative impact on your credit score such as failing to pay bills on time, having too much debt, using too much of your available credit, and being the subject of finance-related court action. Also, having charge-offs logged on your credit file can have an impact on your credit score.
Getting the Charge-Offs Removed
Naturally, many people with charge-offs on their credit files want to get them removed. According to Observer.com, there may be a variety of ways in which you can do this. One of the options is to pay the charged-off accounts on your credit file by getting in touch with the original creditors. So, is this something that you should consider doing?
Well, one thing to keep in mind is that paying creditors the balance on the charged-off accounts in a bid to get them removed is not something that is favored by the credit referencing bureaus. Having said that, it is not something that is illegal, and it can be done as long as the creditors that added the charge-offs are willing to get them removed based on your offer.
So, one of the things you need to do is contact the original creditors for the charged-off accounts so you can speak with them about moving forward with the removal. You will need to speak to them about what you are willing to do in terms of making payment. For instance, if you make an offer to pay what is owed on the charged-off accounts, that may be all it takes to get the charge-offs removed by the creditors.
Another thing you have to consider is your current financial situation, as you need to ensure you can afford to make the payments against the charged-off accounts. If you do not have the money all in one go, you may be able to speak to the creditor about paying in instalments, at the end of which they can then remove the charged-off accounts from your credit report. Again, there is no obligation for the creditors to do this, and it is their decision as to whether they agree to get the charge-offs removed if you pay back what you owe.
Another way in which people pay to try and get charge-offs removed from their credit file is by using credit repair agencies. Now, before you do this, you should remember that anything they can do you can also do. So, they cannot work miracles in order to get your charge-offs removed. However, what they can do is get the job done with greater speed and efficiency, as this is something that they deal with all the time and it is something they do on a fulltime basis.
Is It Worth Getting Charge-Offs Removed?
One questions that people ask themselves is whether it is worth paying charged-off accounts in order to get them removed from their credit file. Well, one thing to keep in mind is that charge-offs on your credit file can have a huge detrimental impact on your credit score. This can then have a huge negative effect on your financial future. You may struggle to get any sort of finance in the future, and even if you do get it, you will often pay a fortune in interest and fees because you pose a bigger risk to the lender.
So, if you are considering doing things such as getting a mortgage, renting a home, or buying a car in the future, it is worth trying to get your credit report as clean as possible. This will save you money in the long term and enable you to get the finance you need.