When you take out a credit card or another type of loan, it can open up many opportunities to you. Your financial options can begin to open up and you may be relishing in the freedoms that this opens up. But it is important to not get carried away with these, as you need to be keeping up with your repayment amounts. For some people, that can be where the problems arise. When you are unable to make your repayments, your credit score will start to slip. This will continue to be the case, until you reach being charged off.
Understanding Charge Offs
A charge off is where a loanee falls significantly behind on their credit repayments, amounting to more than a few months. Essentially, the creditor decides that they are unable and unlikely to be able to make any more repayments and files their account as a charge-off. This leaves a serious mark against your credit report, which will remain in place for up to seven years. For many people, the sound of a charge off could mean they no longer feel obliged to make their repayments. But in reality, it still falls very much into your list of responsibilities and remains something that you will still need to pay back.
Effect on Your Credit Score
The first thing to remember, is that not keeping up with your repayments is going to cause a negative effect on your credit score, as it is. But once you reach the point of being charged off, that could only be amplified further. It will become a derogatory mark on your credit report, something which can follow you around for between seven and ten years. That can seriously affect your financial opportunities, for what is likely going to be a hugely important chunk of your life.
Finding Methods of Avoidance
Once you have reached the point of a charge off mark, there is little that can be done to change that. However, hope is not necessarily lost and at Little Rock Credit Repair, we have the methods to help you find a way out. Our expert team have dealt with a number of charge off cases and are familiar with a number of methods, that could potentially help to rectify your situation. We will discuss ways for you to work alongside the creditor, pay off the outstanding debt or for you to work towards paying the collection agency. Our experienced consults will sit with you and identify the best ways for you to start repairing your credit report.
Professional Guidance
The kind of guidance and advice that our team provide you with, will be invaluable towards your cause. Our professional agents are the industry experts and are best qualified, to start helping you get your credit score better aligned and you, back on track towards your financial goals. We are a team that you can trust, as one, who will continue to work in your best interests until the final outcome.
