Can I remove this nuisance charge-off?

[Gerardo]

My application for a car loan was denied. It turns out that I have a $48 charge-off from a credit card I didn’t even know I had. I’m guessing that it’s an unpaid annual fee. It’s was written off a year ago, and already causing me huge problem.

Is there anyway I can get it off my report? I don’t mind paying. I just want the darn thing off my report!

[Stacy Wall]

Try the goodwill tactic

First, you should know that credit card companies don’t usually delete charge-offs. Did the charge off went to collection, or do the credit card company still owe it?

I’m also surprised that it causes “Huge Problem”, since the new Fico score doesn’t consider nuisance small debts (less than $100).

I would start by calling the credit card company, explain what happened, offer to pay and ask them to remove the negative item in return. You may need to go up a few levels in customer service as most reps don’t have authority to remove negative information. If you manage to get a deal, have them send it to you in writing before you pay.

Although goodwill letters’ level of sccess with removing charge-offs are very slim, in your case it’s still worth a try (See goodwill-letters.html for more information).

If you fail to get a deal, you may try to dispute it with the credit bureaus. I don’t normally advise people to dispute legitimate items, but in your case it may be your only option. Even if your dispute fails, you still have a right to add a 100 word statement to your credit report, explaining the situation. Every creditor that pulls your credit report will be able to read your explanation (See how-to-dispute-credit-report.html for more information).

If all else fails, you may be able to sue the credit card company. If it’s really just a matter of fee and the nonpayment of it that resulted in the charge-off, you should be able to sue and get it removed. Most credit card companies will prefer to simply remove it rather than go to court over it.

Good luck

[Author]

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