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"&amp;lt;p&amp;gt;A &amp;lt;a href=&amp;quot;https://www.thebalance.com/what-is-a-credit-card-charge-off-960409&amp;quot; data-component=&amp;quot;link&amp;quot; data-source=&amp;quot;inlineLink&amp;quot; data-type=&amp;quot;internalLink&amp;quot; data-ordinal=&amp;quot;1&amp;quot;&amp;gt;charge-off&amp;lt;/a&amp;gt; is one of the worst things that can happen to your credit score as it indicates a serious payment issue. This type of derogatory credit report listing is the result of missing your minimum credit card payment for 180 days, or six months. After several months of missed payments, the credit card issuer declares your account as a loss and writes it off as uncollectible. But that\u2019s only from an accounting standpoint. You still owe the balance of a charged-off account and the creditor will still try to collect the past due balance from you and may even enlist the help of a third-party debt collector.&amp;lt;/p&amp;gt;&amp;lt;h3&amp;gt;What Happens When You Pay a Charge-Off?&amp;lt;/h3&amp;gt;&amp;lt;p&amp;gt;If you pay a charge-off, you may expect your credit score to go up immediately. You\u2019ve cleared up the past due balance, your credit score should reward you for that, right? Unfortunately, it\u2019s not that easy.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;Paying a charge-off doesn\u2019t remove it from your credit report. Clearing up the past due balance doesn\u2019t erase the fact that your account was actually charged-off. Paying a charge-off also will not improve your credit score \u2013 at least not immediately.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;Over time, &amp;lt;a href=&amp;quot;https://www.thebalance.com/rebuild-your-credit-after-a-collection-or-charge-off-960805&amp;quot; data-component=&amp;quot;link&amp;quot; data-source=&amp;quot;inlineLink&amp;quot; data-type=&amp;quot;internalLink&amp;quot; data-ordinal=&amp;quot;2&amp;quot;&amp;gt;your credit score can improve after a charge-off&amp;lt;/a&amp;gt;\u00A0if you continue paying all your other accounts on time and handle your debt responsibly. However, if you\u2019re late again or you have another account charged-off (or something worse), your credit score may go down even more and can take longer to recover.&amp;lt;/p&amp;gt;&amp;lt;h3&amp;gt;The Benefit of Paying Your Charge-Off&amp;lt;/h3&amp;gt;&amp;lt;p&amp;gt;Most people would only pay a charge-off to see an increase in their credit score. You may be less inclined to pay your charge-off considering you probably won\u2019t see an instant credit score boost. There other good reasons to pay your a charge-off.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;&amp;lt;a href=&amp;quot;https://www.thebalance.com/will-paying-a-charge-off-improve-your-credit-score-960556&amp;quot; data-component=&amp;quot;link&amp;quot; data-source=&amp;quot;inlineLink&amp;quot; data-type=&amp;quot;internalLink&amp;quot; data-ordinal=&amp;quot;3&amp;quot;&amp;gt;A paid charge-off is always better&amp;lt;/a&amp;gt; than an unpaid one, especially if you plan to make any applications with companies that check your credit. Lenders, creditors, and other businesses are less likely to approve your applications if you have outstanding past due balances on your credit report. It sends the message that you\u2019re not going to pay them either. Once you pay the charge-off, you improve your odds of having your applications approved.&amp;lt;/p&amp;gt;&amp;lt;h3&amp;gt;Negotiating a Pay for Delete&amp;lt;/h3&amp;gt;&amp;lt;p&amp;gt;Some consumers have been able to negotiate removal of charge-off accounts via a process called &amp;lt;a href=&amp;quot;https://www.thebalance.com/sample-pay-for-delete-letter-960563&amp;quot; data-component=&amp;quot;link&amp;quot; data-source=&amp;quot;inlineLink&amp;quot; data-type=&amp;quot;internalLink&amp;quot; data-ordinal=&amp;quot;4&amp;quot;&amp;gt;pay for delete&amp;lt;/a&amp;gt;. You essentially offer to pay the account in full in exchange for having it removed from your credit report. Creditors are not required to do this, but occasionally do agree. If you can have negotiate a pay for delete (it can be a long shot), you\u2019re more likely to see an increase in your credit score after the item is removed from your credit report.&amp;lt;/p&amp;gt;&amp;lt;h3&amp;gt;How to Avoid a Charge-Off&amp;lt;/h3&amp;gt;&amp;lt;p&amp;gt;Now that you know accounts are charged-off after six months of missed payments, take care to avoid such a serious delinquency. The further you get behind on your payments, the harder it is to caught up again. So set caught up on any missed payments as quickly as possible. If you foresee problems making your credit card payment, contact your credit card issuer as soon as possible to &amp;lt;a href=&amp;quot;https://www.thebalance.com/how-to-avoid-a-charge-off-960994&amp;quot; data-component=&amp;quot;link&amp;quot; data-source=&amp;quot;inlineLink&amp;quot; data-type=&amp;quot;internalLink&amp;quot; data-ordinal=&amp;quot;5&amp;quot;&amp;gt;avoid a charge-off&amp;lt;/a&amp;gt;.&amp;lt;/p&amp;gt;"^^<http://www.w3.org/2001/XMLSchema#string>
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