[Amber]

When a person fails to pay a credit card for multiple months (generally 4, but it varies), the card issuer may choose to “charge off” the debt. This means that they consider the debt to be uncollectible and take a tax write off. As far as the credit report, the card will no longer be shown with new lates (all previous lates stay), but will be marked charged off . They can still post a balance on this debt UNLESS they sell to a junk debt buyer (collection agency). At this point, they can still show the late payments and the charged off debt, but can no longer show a balance. This means that one account can actually be shown negatively twice…. once as a charge off and once as a collection.

[Amber]

This is one reason it is so important for a client’s credit restoration service to work closely with the lender. In most all cases, before the final credit pull, we will make sure that all disputes are closed out and that the credit bureaus have been informed that the disputes are closed. This process can take up to 72 hours, but generally happens within 24. We like to run as many disputes as possible in our time frame, so we make sure that closing them out is part of the process. We have seen many times where a new client will still show in dispute although they have not disputed in over a year.

[Amber]

Sometimes it can be very easy…. Paying down credit cards or paying off a medical collection. Other times it will take more work. There may be multiple charged off accounts, collections, etc that need to be disputed, a lack of credit, or other factors that can not be resolved as quickly. Every profile is different. We are always happy to take a look to see what is needed!