Whenever a consumer defaults on his payments for a loan, the creditor would usually categorize it as a charge-off loan. Unfortunately, a charge off does not necessarily mean that the creditor has written off your loan or has just charge it off to losses. Charge off means that you have been delinquent on your payments and the company has a hard time collecting from you. This would usually be a bad reflection on your credit record and would be a basis for a creditor to reject your loan or prevent you from getting a mortgage. If and when you do get a loan approved however, it would usually mean exorbitant interests and would leave you paying for it your whole life. Having a debt charged off does not have to end up in your credit records. Reporting a bad credit is actually voluntary for the creditor. Once reported, they also have the option of deleting a charge off if they wanted to. That is why, if and when you do agree to pay a charge off, get a written agreement from the creditor to delete the charge off from your credit record once you have paid off the debt. It is imperative for you to know that creditors can and are able to remove a charge off that they have reported. Claims by creditors that charge offs cannot be deleted are entirely false and in fact thousands charge offs get removed from credit records every day. After paying off a charge off, you could try calling the creditor or perhaps sending them a good will letter asking them to delete the charge off for you. They would probably tell you that they can’t as per their employer’s instructions, but there is no harm in trying. Disputing the charge off with the credit bureaus is another way of deleting a charge off report. As a matter of fact, this is often the most effective. This entails a lot of hard work though because once you dispute a credit report, thorough research must first be done to look for possible reasons for dispute. Hiring a credit repair service to do this is one good option because these companies are experts in this field and have a lot of experience when it comes to disputing credit reports. But if you are determined to do it yourself, you can join forums about disputing credits to see what people have to say about this topic and maybe learn more about how to repair your credit. All it takes is a lot of hard work and the conviction to do a good job.