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What is a charge off on a credit report?

April 26, 2017charge credit report

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What is a charge off on a credit report?

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A charge off on a credit report is when a lender has decided that it will not be able to collect a debt from the borrower, and writes the amount owed off as a bad debt. The lender will use this amount as a tax write off and possibly turn your account over to a collection agency. You will still owe the amount even if it is charged off and you can possibly be sued. Your credit score will also drop because of the charge off.