How to Avoid Getting A Charged off Account Listed on Your Credit Report

Avoiding a charged off on your credit file is easier than you think. Typically a creditor charges of an account after it has been delinquent for more than 180 days. When a creditor charges of an account he usually sells account to a collection agency. Charging of an account means that the creditor has lost all hope of recovery of money on the account. A charged off account is one of the worst entries that can appear on your credit file.
In order to avoid your account getting charged off make sure that you keep making the minimum payment on your account every month. By making slightly more than minimal every month you will pay off your debt faster.
If your account has already been reported as charged off you can still negotiate with the creditor or the collection agency and pay it off in exchange for the removal of negative information from your credit file. Most of the times a creditor or the collection agency will not agree to do this. You can still have the status updated in your credit file as settled or paid in full which is better than the charge of status.
A charged off account is a bad entry to have on the credit card because it will stay on the credit report for a period of seven years and all the future creditors who could your credit report for the purpose of approving your credit application is see that you were direly late on your payments before.

Leave a Reply