Greetings friends,

A little advanced credit reporting 101 here. 

We get this question asked a lot:

Can a creditor continue to report a charged off account every month?? And, if so, doesn’t this hurt my credit because it looks like it just happened??

Here’s the answer, and my apologies if it’s a bit complicated. 

Basically, a creditor can report ‘CO’ every month, so long as it is in fact a ‘Charged Off’ Account. However, what they cannot do, is update the ‘Date Major Delinquency 1st Reported’, which is in effect the date of the charge off. 

If the creditor does not update that date, then the Charge Off does not appear as new, hence the credit will not be more adversely effected, aside from the general fact, that it is a charge off account. 

However, if that date is renewed, which happens, then it appears as though the account was more recently charged off, hence the credit scores will in fact be more negatively effected than if the date was not changed. 

What does all this mean?? It means, if you are engaged in credit repair, either on your own, or working with a credit repair organization, you need to be reviewing those responses. 

The devil is in the details gang, and if you aren’t reading those responses, or if the Credit Repair Organization is not reading the responses, you aren’t being as effective at reviewing the credit as you can/need to be. 

Make sense?? 

If not, call us. 

Be well, 

​Credit Dr. 

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