Doug's Credit Center Blog

How to Improve My Credit With a Charge Off


A charge off is one of the things that can damage a credit score extremely badly, and unfortunately there is very little that a consumer can do to directly affect whether a charge off will hurt their credit. However, consumers that wish to increase their bad credit score despite a charge off can concentrate on other areas of their credit report. A charge off itself cannot be removed unless it is erroneous, which is rarely the case. This means that it is very essential for a consumer to make sure that the rest of their credit is extremely clean.

Things to Avoid With a Charge Off

Pay-Off Accounts
Make sure that all of your payments remain current on all of your other accounts. There is nothing you can do about the account that was charged off, but you can avoid any further damage.
No New Credit Lines
Do not open any new credit while you are trying to repair your credit. This will only make it much harder for you to increase your overall credit score.
Do Not Close Any Credit Accounts
If you want to stop charging things to your accounts you can shred your credit cards, but under no circumstances should you close the accounts. This will actually lower your credit score.

Easy Steps to Improving Credit With a Charge Off

The first step towards improving your credit should always be to pay down the balances that you have and to avoid building the balances. This can sometimes mean cutting up the credit cards and paying more than the minimum balance. If you presently have an unsustainable amount of debt it may be advisable to strongly consider either going into a debt settlement or a debt consolidation.

Either of these debt solutions may make it easier for you financially as well as resolve your issues with your credit. However, as mentioned, there is nothing you can do about the charge off itself. If it is a mistaken charge off, however, you can write a letter to get it removed from your account. Once you have paid down your balances you should focus on maintaining current accounts.


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