Dealing with charge-offs and repossessions on your credit report can be stressful, but you have the right to dispute inaccurate or unfair entries. A charge-off occurs when a creditor writes off your unpaid debt as a loss, while a repossession happens when a lender takes back collateral (like a car) due to missed payments. Both can severely damage your credit score, but if they’re reported incorrectly, you can challenge them.
This guide will walk you through:
Charge-offs Explained
A charge-off happens when a creditor determines that a debt is unlikely to be paid and closes the account as a loss. This typically occurs after 180 days (6 months) of non-payment. While the debt is no longer active on the creditor’s books, it remains in your credit report for 7 years from the date of the first missed payment.
Key Points About Charge-offs:
Repossessions Explained
A repossession occurs when a lender takes back an asset (such as a car, boat, or home) due to missed payments. Like charge-offs, repossessions stay on your credit report for 7 years and can drastically lower your credit score.
Key Points About Repossessions:
Both charge-offs and repossessions signal to lenders that you’re a high-risk borrower, making it harder to:
Credit Score Impact
If a charge-off or repossession is inaccurate, outdated, or improperly reported, you can dispute it with the credit bureaus (Experian, Equifax, TransUnion) and the creditor.
Step 1: Obtain Your Credit Reports
Get free copies of your reports from:
Review them for errors, such as:
Step 2: Gather Supporting Evidence
Collect documents that prove the entry is wrong, including:
Step 3: Submit a Dispute to the Credit Bureaus
You can dispute online, by mail, or by phone. Certified mail is best for documentation.
Step 4: Dispute Directly with the Creditor
Under the Fair Credit Reporting Act (FCRA), creditors must verify disputed information. Send them a similar dispute letter and request proof of the debt.
Step 5: Follow Up
If the charge-off or repossession is verified, but you believe it’s unfair, consider:
Some creditors may agree to remove the negative mark in exchange for payment. Get this agreement in writing before paying.
Even if they won’t delete it, settling for less than owed can stop collections and improve your credit over time.
Negative items must be removed after 7 years. If they don’t fall off automatically, dispute them again.
While disputing errors helps, rebuilding credit takes time. Try these steps:
Disputing charge-offs and repossessions can be challenging, but if they’re inaccurate, you have a strong case for removal. Always document your disputes and follow up persistently. If the negative marks are legitimate, focus on rebuilding your credit with positive financial habits.
Take control of your financial future—call (888) 803-7889 to get your credit score back on track!
1. Can I dispute a charge-off on my credit report?
Answer: Yes. If the charge-off is inaccurate, you can dispute it with the credit bureaus (Experian, Equifax, TransUnion) online, by mail, or by phone. Provide supporting documents to strengthen your case.
2. How long do charge-offs and repossessions stay on my credit report?
Answer: Both typically remain for 7 years from the date of the first delinquency. However, you can dispute them if they’re incorrect or outdated.
3. Will paying a charge-off remove it from my credit report?
Answer: Paying a charge-off doesn’t automatically remove it, but it may update the status to "Paid." You can negotiate a "pay-for-delete" agreement with the creditor, though they’re not required to accept it.
4. Can I dispute a repossession if I believe it was wrongful?
Answer: Yes. If the lender doesn’t follow proper legal procedures (e.g., fails to notify you), you can dispute the repossession with the credit bureaus or seek legal action.
5. What’s the fastest way to dispute charge-offs or repossessions?
Answer: File disputes online via the credit bureaus’ websites for quick processing (typically 30 days). For stronger cases, send a certified dispute letter with evidence.