What do Charge offs do to your credit?

Question

I have a lender that's reporting a charge but balance as $20.00 and last payment as $247.00. The true balance is $3500.00 and that was the last payment

Answer 1

Charge-offs is one of the biggest negative factor for your credit rating regardless of charge-off amount....this tells potential creditors that you have failed to pay a creditor and that that particular creditor has deemed the money owed as a loss (charge-off)...

However although regardless of if you pay the creditor eventually the charge off will still have a negative effect...but a paid charge-off looks better than an unpaid charge off....my suggestion is if you don't dispute the account make payments so that eventually you won't have this unpaid debt on your file....oh I see that you said the last payment was $3500 you should dispute this if they have last payment at $247 thru the credit bureaus so that the payment info is updated --- also if the $3500 paid your account in full you should also dispute that as well ---