What Is a charge-off?

Source: Jenn Underwood, Forbes

While a charge-off may sound like a solution to an unpaid debt, it indicates that your creditor determined that you are unlikely to repay a delinquent account.

  • Delinquent credit accounts are subject to charge-off after 120 to 180 days of nonpayment
  • Inability to pay is reported to at least one of the major credit reporting agencies
  • Charge-offs are a negative mark of your credit report for approximately 7 years
  • You are still responsible for the debt after a charge-off occurs

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