Charge-offs are detrimental to your credit. By the time your account gets charged off, you’re already 180 days late. After that, the charge-off listing will remain on your credit report seven years from the date it was charged off. In total, the account remains delinquent on your credit report for seven and a half years. That's a long time to have such a negative entry on your credit report. Charged-Off Doesn't Mean Forgiven
Don't let the name fool you. You're still responsible for paying a charge-off. As long as the charge-off remains unpaid, the creditor can continue attempts to collect on the account and that may include suing your for the amount.
Future creditors and lenders take charge-offs seriously, so it’s in your best interest to remove charge-offs from your credit report. Negotiation is your best tactic for reducing the effects of a charged-off account. Talk to the Creditor
Often charge-offs are handed to a debt collector. But, when it comes to charge-offs, you don’t want to deal with a collection agency. After all, it’s the original creditor who reports a charged-off account and a collector can’t do anything about what the original creditor reports to the credit bureaus.
To remove a charge-off, you should contact the original creditor. You want to convince the creditor to remove the charge-off from your credit report in exchange for payment. Before you make the call, know how much you’re able to pay on the account. The more you can pay and the sooner you can pay it, the more negotiating power you have. Ask to speak to someone who has the authority to remove the charge-off from your credit report. Otherwise, you face the risk of getting told "no” by someone who couldn’t say "yes” if they wanted to.
Let the creditor know you’re interested in paying the account and would like to make payment arrangements in exchange for having the charged-off status removed from your credit report. Speak politely and professionally. Avoid blaming the creditor or giving your life story. Keep it short and to the point. Best case, the creditor will agree to remove the charge-off from your credit report
Credit card companies are contractually bound to report credit information to the credit bureaus, so it can be difficult to get a creditor to agree to remove the charge-off from your credit report. Even so, some cardholders have been successful in making a pay for delete agreement. If you can’t get the creditor to agree to remove the charge-off completely, try for something less negative like "Closed”. Get the Agreement in Writing When the creditor agrees to remove the charge-off from your credit report, get the agreement in writing. You can do this in one of two ways:
1. Have the person you spoke with fax you a copy of the agreement on company letterhead. 2. Alternatively, get the name, mailing address, and phone number of the person you spoke with. Send a copy of your agreement to that person via certified mail with return receipt requested. Request the person sign and return a copy to you.