5 Proven Steps to Remove Charge-Offs and Rebuild Your Credit FAST

Hey, Credit heroes. Charge offs are one of the most unpredictable and damaging items that can appear on a credit report. They're difficult to remove from credit reports because they are the highest level of delinquency besides an actual bankruptcy. But good news. I'm going to give you some surefire tips on how you can get those charge offs removed from your credit report. So you better stick around. So the big question is, how can.

We take our passion for helping people with their credit and turn it into a successful business without taking loans? Without spending a fortune by bootstrapping it from nothing so we can help the most people and still become highly profitable? That is the question and this podcast will give you the answer. My name is Daniel Rosen and welcome to Credit Repair Business secrets.

In the 20 years since releasing my first credit repair software, I have helped thousands of businesses scale from the ground up up. And I've experienced many of the same challenges that credit heroes face. And I've learned proven ways to overcome them and succeed. And one of the most challenging things you can face is a charge off. See, when you have a lot of debt and you're not paying it off, your creditors tend to get mad. They call, send letters, and relentlessly try to make contact, making your life miserable. After about 120 days, they finally come to the realization that there is little hope of collecting it, but it's still considered an asset to their company. So they're paying taxes on it. So they report it as uncollectible. But by doing so, they give up the right to actively collect on it. They then report to the bureaus that the debt has been charged off and they either sell the debt to a third party debt collector or they lease it to a debt collection firm. Here is how this relates to us. Charge offs are extremely damaging to your credit report. For one thing, they live on your credit reports for seven years from the date of the first missed or late payment. But also because the new debt collector, the one who just purchased it, now reports the account as a new collection. So your credit report shows a bad payment history with the original creditor and it also shows a collection account. I call that a double hit. Their impact varies wildly depending on the circumstances. But just one charge off can drop your score anywhere from 50 to 150 points. Here's the thing to remember. It's best to avoid charge offs whenever possible. But if you're stuck with them, it's important to treat their removal as one of the most important things to focus on. You'll want to create a strategic plan and follow it closely and consistently for however long it takes. Here's what you need to know. There is no magic wand to instantly erase a charge off, but there are proven steps that you can take to get it removed. Step one Start with the basics. Send dispute letters to the credit bureaus requesting verification of the debt. Remember, by law, everything on your credit report must be 100% accurate, complete and verifiable. And if it's not, it must be removed. Step 2 Freeze secondary bureaus before you do anything else, freeze your accounts with secondary bureaus like LexisNexis, Innovis, and SageStream. Why? Because these bureaus share data with creditors and credit bureaus, and fraud freezing them forces everyone to do their own due diligence. Step 3 Challenge the debt Next, send a validation letter to the debt collector or dispute the charge off with the original creditor using section 312 of the Fair and Accurate Credit Transactions Act. You can also request that the original creditor issue A 1099 C, which verifies the cancellation of the debt and and can lead to its removal. And here's a pro tip. Explain any financial hardships that led to the missed payments. Creditors are often willing to work with you. Step 4 Request key documents Ask the original creditor for the original contract you signed, a payoff disclosure, balance and payment history, and interest rate disclosures. If they can't provide these, the debt might be removed by law. Step 5 Negotiate for removal if disputing doesn't work, you might need to negotiate a settlement. Offer a pay for delete agreement where you settle the debt in exchange for removal from your credit report. But be careful, because if you make a payment on an old debt close to the seven year statute of limitations, it resets the clock and you'll be stuck with it even longer. What if it doesn't work? If the bureaus or collectors ignore you or send stall letters, don't give up. Request a reinvestigation, demand their method of verification and file a complaint with the cfpb, including all your supporting documentation. It's important to remember that this process takes time and it requires patience and persistence. Here's my final point. Charge offs are unpredictable, damaging and a pain to remove from your credit report. But don't let that discourage you. With patience, persistence, pressure, a few dispute letters and an occasional phone call, you can get it done. Now, I have heard from people who've had charge offs deleted from their credit report, but they pop back up years later. So you want to continue to monitor your report closely And I'll end by saying, if you still need a credit repair cloud account, check it out. It's a software that most credit repair businesses in America run on. Just sign up for a 30 day free trial at creditrepaircloud.com freetrial and if you'd like to improve your credit score and discover how to earn extra income repairing Credit for others, check out my brand new Start Repairing Credit Challenge. Doors are closing soon and it is completely free. So sign up right now@startrepairingcredit.com if you find value in the things that I share on this podcast, click below to subscribe and follow. Also, give me a thumbs up, give me a five star review or share the show and help me to change more lives. If you have a question or a comment, drop it down below because I read each and every one of them. I would love to hear from you and I'll respond as soon as I can. So take care credit Hero, and keep changing lives.

Hey everybody, it's Daniel again and real quick, I want to invite you to join what I believe is the best thing we have ever created inside the credit repair cloud community. And it is a free challenge that we call the Start Repairing Credit Challenge. If you want to repair your credit and increase your credit score and you want to learn how credit repair really works, or you dream of having a successful business of your own so you can change lives, make an impact and have financial freedom, or maybe you're looking to add more revenue to your existing business. If that's your dream, you need to get into this challenge. We created this free challenge to help you to learn how to repair credit, help others, and maybe grow your very own credit repair business. A business that really helps people and changes lives. This free challenge will help you to understand the strategy, the tactics and all the things you need to be successful at credit repair. And the best part is it's completely free. So I recommend you do it right now. Stop everything, pause this audio, go online and go to startrepairingcredit.com that's startrepairingcredit.com and join the next free challenge. And there's a challenge that's starting in just a few days. So go get started right now@startrepairingcredit.com.