@Anonymous wrote:I am in the process of trying to buy a house and 3 months ago the lender pulled my credit with no issues, 1 month ago it was pulled again and showed 2 late payments on my credit report. 7 years ago I went through a divorce and my ex had her car repossessed and to save my credit I worked it out with a collection agency I would pay $75 a month until it was paid off, I requested copies of this since I have not missed any payments and had to write a letter to Toyota explaining the situation with copies of the payment history. Now (as of 3 days ago) my credit shows the payment was closed with remarks "charged off as bad debt, dispute resolved, customer disagrees." I am currently still paying the collection agency to rid myself of this debt but the issue is my credit score dropped approx. 70 points. I was reading online and saw this charged off debt will stay on your credit for 7 years past the initial delinquency which was in January 2011. Should I expect this to come off my credit report this coming January? Is there anything I can do about this now to improve my credit for homebuying purposes? is there any want to get rid of my debt now? what are the tax implications of this?`
The CRAs schedule removal of a COed account at the 7 year mark from the DoFD to be sure to stay within the law. You can request a goodwill deletion from the reporting creditor with a GW letter and you can ask for the early exclusion from the CRAs 6 mos in advance with TU and 1-3 months in advance with the other 2 CRAs. I am surprised they did this now as it clearly shows its just spiteful.
