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If you have a charge off it will cause your credit score to be lower. A charge off happens when an account is not paid on for 6 months.

To delete charge offs from your credit history you have to dispute the charge off. You can do this by sending a credit repair letter to the credit bureaus.

In your credit repair letter you should explain why the listing is incorrect. For example the account has never been paid late, it's not your account or information is wrong.

Unfortunately when it comes to reporting on your credit report you are guilty until proven innocent. Meaning it is common for incorrect information to be on your credit report.

Congress passed the Fair Credit Reporting Act in response to complaints of inaccurate information being reported by the credit bureaus. This legislation simply says that if a listing can not be verified then the credit bureau must remove it from your credit report.

It is common for one charged off account to turn into numerous negative listings and a bad credit score. I will explain the process of what happens to an account once the lender reports it as a charge off.

The charged off debt will be sold to a collection agency by the lender. That collection agency will make efforts to recover payment. If they are unable to then the collection agency makes a new negative listing on your credit report.

The collection agency will then sell your account to another collection agency. The new agency will also try and collect and if unable they will report yet another new negative listing.

This process will continue dependent upon the size of the account. So one account can become many negative listings and ruin your credit score.

With a number of negative listings it will ruin your credit score. This will also make it hard to be approved for any new credit lines.

In sum I encourage you to dispute the listing before you make payment. I would do this because making payment does not guarantee the listing will be removed.

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