I did a settlement on my credit card after it had already been charged off; how can I improve my credit score now?

I just did a settlement on one of my credit cards, but this was after it had already been charged off. I've read negative things about how this can impact my credit score. Is there a way to improve my credit score now, and how can I take it off my credit report?

Debt, Personal Finance
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March 2018

You are correct, this can have a negative impact on your credit score and unfortunately you won't be able to take it off. The only thing you can do is manage your credit well going forward and allow time to pass. In addition to paying creditors on time, keep the balances of your credit cards as low as you can in relation to the limit, even if you have to move some balances around. If you have credit cards that have been open for a long time, keep them open and use them from time to time on something you were going to pay for anyway, like gas, and then pay it in full at the end of the month so that you don't accrue interest. 

Just a heads up, the creditor that you settled with is very likely going to send you a 1099-C Cancellation of Debt form for the tax year when the settlement occurred for the difference between the amount owed and the amount settled for. For example, if you had a card with a $5,000 balance and settled for $2,000 you will likely get a 1099-C for the $3,000 difference. This is going to be considered taxable income which you will then claim on your tax return. The IRS has what they call an insolvency exclusion. If you qualify, you can exempt forgiven debt from your taxable income. This is done by filing IRS Form 982. I suggest you fill out the Insolvency Worksheet so that you have all of the information you need in order to determine if you'll qualify for the exclusion. You can use the following link to download the form and read more about the IRS guidelines on forgiven debt:  https://taxmap.irs.gov/taxmap/pubs/p4681-002.htm#en_us_publink100052679 

March 2018
March 2018
March 2018