When there is a charge off on your credit history it will dramatically lower your credit score. This will make getting new credit very hard.
If approval does occur it will be contingent upon you placing a big down payment and paying a high interest rate. This is the punishment creditors place on individuals when they are unable to pay their bills.
Unfortunately the system doesn’t factor in that sometimes life just happens and some things are beyond our control. Often good people are faced with the choice of eating or paying a bill.
Credit bureaus want you to think that when a charge off occurs you are stuck. That you will have to pay the penalties until the negative listing is naturally removed with time. This is false.
According to the Fair Credit Reporting Act any inaccurate or unverifiable listing must be corrected by the credit bureau. Often creditors are not willing to spend the money or time to verify non collectable debts.
Thus, when an investigation is granted the negative listing is often deleted regardless of accuracy. The difficulty we hear of comes in getting the investigation started.
This is because credit bureaus do not create extra income from investigations and instead spend money out of their own pocket. Their only reason to conduct an investigation is to obey legislation.
So credit bureaus will often use stall tactics in an attempt to frustrate the individual into giving up on the dispute process. This is why many people will hire a professional credit repair firm, to deal with the credit bureaus.
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