What Does Having a Charge-Off Mean on a Credit Report?
Having a charge-off appear on your credit history is one of the worst red flags to a creditor. Although detrimental to your credit, you can usually negotiate with your lender before your debt gets charged off.IdentificationA charge-off on a credit report means that the lender believes that it can no longer collect the debt because the borrower has failed to make a payment for a long time, usually after 180 days, DebtHelp.com reports.MisconceptionsA charge-off does not mean that you are free from any obligation to pay off the debt, reports Steve Bucci of BankRate.com. Creditors write it down for tax purposes, but usually still try to collect on it.Fun FactBucci reports that having a charge-off is the most common reason for a creditor to deny you a loan.EffectsSometimes the credit agency hires a third party to collect the debt, according to DebtHelp.com. When this happens, the third party will constantly contact you (email, calls and even in-person demands) for repayment on your loan unt
