Sean Clark is one of the leading industry professionals in the credit consulting and credit repair space and has helped to successfully repair thousands of credit scores.
His focus and determination on quick turnaround, high-quality work, and efficiency have built his reputable name and business on a strong foundation of happy customers, and a long list of referral partners.
Clark a 25-year-old Entrepreneur from Phoenix, Arizona started his One Percent Credit company just a little over 2 years ago. Within those two years, Clark has successfully built a 7-figure Credit Repair company as well as a 7-figure personal and business funding company.
One Percent Credit has successfully helped millions of consumers in debt as well as helped thousands of consumers repair their credit with his proven strategy, so they can begin rebuilding their financial lives and getting a strong score established again. Their services have helped people get approved for lifelong purchases such as homes, cars, lower interest rates, and the funding capital that they may need to start or grow a business.
Clark got into credit because he had been scammed in an Shopify e-commerce investment on Instagram for $1500. At the time it was the last bit of money he had saved up. Desperate to find a business or opportunity that would work and help provide Sean with financial freedom he started to look for other ways to make money. That is when stumbled across the amazon stores when they had first started to come around and thought that it would be the golden ticket. At the time the stores were selling for 20k, and he didn’t have 20k so the company said they could provide funding but it turned out he didn’t have the required credit score to acquire enough funds to get the amazon store. However, they charged him 15% on the measly 8k they had been able to give him even though he said he didn’t want it. Furious with having to pay the fee and now a beat up credit score, he began to invest all of my time and energy into learning how credit works, how to find myself, how to fund myself and use that capital to invest into assets.
Besides helping thousands improve their credit reports and scores, One Percent Credit has been successful in helping entrepreneurs and businesses acquire capital to invest into new income streams, grow their existing businesses, or even save their business with enough capital to get them through tougher financial times such as COVID-19.
One Percent Credit helps solve the consumer and business financial problems in the market place nowadays when it comes to unwanted and falsified debt. Having a strong credit file is extremely important when it comes to funding choices for your business. Without a strong credit score, you will have high APR rates, Higher chances of Loan Denials, and Overall higher Car Insurance so The ability to access capital when needed for a business or personal venture can be a life-changing experience for many individuals. The foundation for American finances and businesses have always been built off having or obtaining credit to keep our economy running. Helping people do all of the above is one of the most fulfilling things One Percent Credit can do to give back and implore those to not let a financial mistake or hardship ruin their lives or business in a time of need.
Everyone makes a mistake here and there, but they have a mission to give those who need a second chance the one they deserve. Sean believes you shouldn’t be punished for your past mistakes or held back by current circumstances that not everyone should have to face. One Percent Credit thrives on helping others, and what better way to do that than to help fix and stimulate people’s futures than with the things they need to be successful in an American economy.
Opinions expressed here are the opinions of the author. Influencive does not endorse or review brands mentioned; does not and can not investigate relationships with brands, products, and people mentioned and is up to the author to disclose. VIP Contributors and Contributors, amongst other accounts and articles, are professional fee-based.
Charge offs are bad news when it comes to credit reports and scores. They’re considered major derogatory items (aka “major derogs”) and are among the worst types of entries you can have in your credit history.
In many cases, charged off accounts can remain on a credit report for up to seven years. But removing a charge off early is sometimes possible. Keep reading to discover three ways to remove charge offs from credit reports, along with other helpful details about these negative credit entries.
Before we continue – If you want to avoid the hassle of removing a charge off by yourself and just want to hire a company to handle the process for you, our top recommendation is Credit Saint.
3 Ways to Remove Charge Offs from Your Credit Report
1. File a Dispute with the Credit Bureaus
The companies you do business can legally share details about how you pay your bills with the credit bureaus. Those credit bureaus, in turn, can gather information about you from multiple sources and package it together into easy-to-read reports. The credit bureaus then sell those reports to others who want to review your data to forecast the risk of doing business with you.
You also have rights when it comes to your personal credit information. One such right comes from the Fair Credit Reporting Act (FCRA). Per the FCRA, a consumer can “dispute with the consumer reporting agency the accuracy or completeness of any information in a report.”
When you dispute a charge off or any other item, the credit reporting agency that receives your request has 30 days to investigate. At the end of the investigation period, the bureau must take one of the following actions with the disputed item:
Verify that it’s accurate
If your dispute is successful, they may remove the charge off from your file. But if the investigation doesn’t go in your favor, the account will stay put.
2. Pay for Delete
A pay for delete is a type of deal you can sometimes make with the original creditor. It starts with an offer to settle or pay back the full amount of a charged off account or a collection. In exchange for the debt being paid in full, you ask the original creditor to have the bureaus delete the account from your file.
A creditor can ask a credit bureau to remove a charged off account from your report any time it wishes. There’s nothing illegal about the practice since credit reporting is optional. The bureaus, however, frown upon pay for delete settlements.
Credit bureaus instruct debt collectors that report information to the credit bureaus (aka data furnishers) not to request deletions of accurate accounts in exchange for payment. In fact, data furnishers sign agreements with the credit bureaus promising to follow these and other rules. If a data furnisher violates its user agreement and gets caught, it might lose its ability to submit customer data to the credit bureaus in the future.
Credit reporting is important to many businesses. It helps creditors encourage customers to pay on time. For this reason, convincing a creditor to accept a pay for delete offer can be a long shot. If you negotiate a payment for deletion deal on a charge off, get the offer in writing before you make any payments.
3. Hire a Credit Repair Company
The FRCA gives you the right to dispute inaccurate information on your own. However, you don’t have to manage the process by yourself. Some people prefer to hire credit experts to assist with getting a charge off removed.
Credit repair companies can dispute questionable and inaccurate information on your credit reports—charged off accounts included. And if your initial dispute is unsuccessful, an experienced credit repair company should be able to help you follow up again.
Of course, there’s no guarantee that credit experts will be able to remove a charge off from your credit report. Any trustworthy company will be quick to point out this fact. But if you’re comfortable with the fees and you don’t want to send and track credit disputes yourself, working with the best credit repair companies might be a good fit for you.
If you’re looking for a good credit repair company that gets results, our top recommendation is Credit Saint. They are the most successful company for getting negative items removed from your credit, including charge offs. Take advantage of their free credit consultation to see how they can help you.
What Is a Charge Off?
When you borrow money from the original creditor, you promise to repay the debt, plus interest and fees, at a certain amount (or percentage) per month. If you miss a payment, the credit card issuer may report you as late to the credit bureaus. Miss enough payments and that same creditor could opt to charge off your account.
The term charge off describes a debt on which you’ve fallen so far behind that the creditor no longer believes you will pay it back. So, the creditor writes the account off as a loss for accounting and tax purposes.
A charge off, despite how it sounds, isn’t the same as debt forgiveness. If the debt is legitimate, you still owe the money you borrowed plus any interest and fees you agreed to pay.
How Does a Charge Off Affect Your Credit Score?
Derogatory information, like a charge off, has the potential to hurt your credit. To make matters worse, a charge off doesn’t just have the potential to damage your credit once. It might hold your score back to some degree for several years.
Should I Pay Charged Off Accounts?
There are several factors to consider as you decide whether to pay a charged off account.
Are you expecting a credit score increase? Paying a charge off often won’t increase your score. If your goal is to boost your score, you may be better off to focus on bringing past-due accounts current, or paying down debt balances before you address charge offs.
Do you plan to apply for new credit in the future? Some lenders may not be willing to work with you if you have outstanding, negative debts. A mortgage lender, for example, might want any charged off accounts on your credit report to show $0 balances before approving your application.
If you decide to pay or settle a charge off in full, it’s important to keep good records. Get a copy of the debt balance you owe (or the debt settlement offer) from the creditor before you pay. Then follow up to get a receipt and zero balance statement afterwards.
How Long Does a Charge Off Stay on Your Credit Report?
Credit reporting isn’t required. No law forces a company to report information about you to the credit reporting agencies. Nonetheless, many creditors do proactively opt to share customer data with Experian, TransUnion, and Equifax.
When a debt collector shares your information or includes it on a credit report, there are rules they have to follow. The FCRA limits how long negative information, like charged off accounts, can stay on your credit report. Charge offs in particular can only remain on a consumer credit report for seven years.
Is a Charge Off Worse Than a Collection?
Charge offs and collections represent two types of derogatory accounts that can appear on a credit report. According to FICO, both charge offs and collections are likely to have a serious negative affect on your fico scores.
But is a charge off worse than being referred to a collections agency from a credit scoring standpoint, or vice versa? The answer depends on several factors.
1. The Age of the Account
Credit scoring models, like FICO and VantageScore, consider many details when evaluating your history. The age, or rather the recency, of derogatory information on your report is one such detail. Negative information on your credit report that occurred a long time ago won’t affect your FICO scores as much as recent negative items from failing to pay back the debt.
So, if you have a debt collection account on your credit report that’s one month old and a charge off that happened three years ago, the debt collection account will most likely hurt your credit score more. If a charge off on your credit report is more recent than a debt collection account, then the charge off will probably have a bigger impact.
2. The Balance of the Account
The information on a credit report is broken up into different sections. When you review your credit report, you’ll usually find charged off accounts (if you have any) in the “credit accounts” section. This section may go by a different name, but it will contain details about your current and closed accounts.
Because of the way a charged off account appears on credit history, it might show that you owe a past-due balance to a credit card company. Past due balances are negative factors in terms of credit scoring.
A debt collection agency, by comparison, does not list past-due balances. And the balance of the collection account itself is not considered by many scoring models. The fact that your account was turned over to a debt collector is what hurts your score.
The balance on a collection tends to be largely irrelevant. So, if you have a charge-off with a past-due balance on your credit report, it could potentially be worse for your score than a collection (assuming both accounts are the same age).
How Many Points Does a Charge Off Drop Your Credit Score?
It’s difficult to predict how much any specific action will affect your credit file. Credit scoring models don’t consider one item at a time when calculating your score. Rather, scoring models look at all of the information on your credit report together and predict your level of risk based on the overall picture.
A new late payment to a debt collector, for example, won’t drop your score by 20 points. Likewise, the appearance of a new charge off on your report isn’t worth a specific number of points either.
The impact a charge off has on your credit history is influenced by factors like the recency of the event and whether the credit card account has a past-due balance. The other items on your credit report are also relevant. And, of course, the type of scoring model that is used to calculate your FICO score makes a big difference in the outcome as well.
Will a Charge Off Affect Buying a House?
Mortgage lenders check your credit reports from all three credit reporting agencies when you apply for a home loan. If any of your reports contain negative information, like charged off accounts, it might cause some problems. For this reason, it might make sense to contact a credit repair company to see if they can help.
A charge off could affect your credit scores. Most mortgage lenders have a minimum credit score requirement that you need to satisfy before they will approve your loan application. Charge offs are negative. So, they might cause your credit score to drop to a point where you won’t qualify for a mortgage.
An outstanding balance could hurt you. Some lenders may ask you to pay the balance on any charged off accounts (or at least settle them in full) before they’ll approve you for a mortgage.
How Long Does It Take for a Charge Off to Be Removed?
The credit reporting agencies must remove the charge off from your credit report after seven years from the date. It might be possible, using one of the methods above, to remove the charge off early. But there are no guarantees when it comes to getting items removed from your credit file.
Trying to remove a charge off from your credit report can be a tedious process, especially if you’re not familiar with the FCRA and other consumer protection laws. But you don’t have to dispute charged off accounts alone. Credit Saint specializes in disputing errors that may be hurting your credit scores and showing you how to add positive information to your credit reports as well.
Reader Advisory: The National Trade Association we belong to has purchased the below classifieds. Determining the value of their service or product is advised by this publication. In order to avoid misunderstandings, some advertisers do not offer employment but rather supply the readers with manuals, directories and other materials designed to help their clients establish mail order selling and other businesses at home. Under NO circumstance should you send any money in advance or give the client your checking, license ID, or credit card numbers. Also beware of ads that claim to guarantee loans regardless of credit and note that if a credit repair company does business only over the phone it is illegal to request any money before delivering its service. All funds are based in US dollars. Toll free numbers may or may not reach Canada.
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In relation to the economic crises that have occurred in recent years, it is possible that your credit debts are increasing day by day, due to the use of credit cards, delays in paying mortgages, job losses, business closings , reduction of salaries among others. Reason why you could make the decision to go to a credit repair company thinking that they could support you with your credits. But before you could choose to request the advice of this type of companies, here are some tips to avoid being defrauded, according to what has been published by the National Commission for the Protection and Defense of Users of Financial Services (Condusef).
Tips to avoid being defrauded by credit repair companies
Although you could be anxious to pay your debts, you should be careful, because just as there are credit repairers that are known, there are others that only engage in fraud.
1.- Stay alert
There are no credit repairers that request cash or that you transfer it by deposit to a personal bank account. If you are presented with this type of situation, it is likely that they will try to carry out a fraud, so it is convenient that you could look for other options.
Tips to avoid being defrauded by credit repair companies. Photo: My Pocket.
2.- Do not sign any type of document without having read
If you have in mind to sign a contract with the credit repair company, first read this document in detail and verify what the conditions and deadlines are, and check what penalties are applied in case of delay or abandonment of the program. If you are not 100% convinced, do not sign it.
3.- Repair companies do not clean your credit history
In the event that the credit repair company you go to tells you that it could clean up your credit history, it is probably not true, so your credit history will be negative and in the future it could be difficult for you to obtain a new credit. It is also important to mention that no repair company could erase you from the credit bureau, even if they ask for money, since no person or institution can carry out this procedure.
4.- Look for valid options to negotiate your credit
There are other organizations that you could go to to negotiate or settle your debts, such as your financial institution, where you could agree on a fixed payment plan or, failing that, restructure the credit and also you could not be presented with fraudulent situations, which could lead to affect your personal finances.
It should be mentioned that credit repairers are companies that perform the function of intermediaries between the debtor and the financial institution to which it could be owed and their purpose is to offer the person who has the debt, a kind of negotiation with the banking institution through options for credit settlement. It also tries to reduce the amount through discounts and modify the credit history in the credit bureau.
According to information published by the Condusef, there is currently no legal framework that regulates the operations of credit repair companies, which means that these companies operate independently and independently, for this reason some people may go with repair companies who are not accredited, existing the probability that they are victims of fraud, and in the event that this happens, the Condusef does not have the faculties to offer them support.
More content about loans and personal finances, in our Credits section.