If you have charge-offs on your credit report, your ability to obtain credit will be severely impaired and will require an active pursuit to restore your credit scores.  Charge-offs remain on your credit report for seven years from the date of the initial missed payment that contributed to the charge-off, also known as the original delinquency date.  Even if payments are made later on the charged-off account, be aware this doesn’t remove the charge-off from your credit report.

The status of any payments after the charge-off will be updated to "paid charge-off", but will still reflect as derogatory.  To qualify for some loans, including a mortgage loan, you must address these charge-offs.

Disputing the account is the first step in removing it from your report.  If after the disputes the credit bureaus still verify the account, you will need to contact the creditor.  All negotiations should be made in writing; however, you will likely begin with a phone call to determine who your contact person should be for these negotiations.  Once you know who this person is, memorialize everything in writing and request the creditor do the same.

Negotiate with the creditor or collection agency for removal of their listing on your credit report.  A charge-off is negative - paid or not.  Ensure you get this agreement in writing as well.  Remember, that debt collectors will pretty much say anything to get money out of you – that is their job – so getting it in writing will assure that they do what they say they’re going to do.