What is the definition of a charge off?
A charge off is the term given to debt that has been deemed uncollectable by the creditor. In other words, a charge off is bad debt. Usually a charge off will appear on an account if a payment hasn’t been received – and the creditor not contacted – for six months. When an account is listed as a charge off, it means that the creditor no longer considers your debt an asset. It is written off, but that doesn’t mean it just goes away. Instead, the debt is still your responsibility. After an account is charged off, what happens next? After your account is listed as a charge off, it will be reported to all three credit bureaus. This mark on your credit is one of the worst you can have. It will stay on your credit report for at least seven and a half years. What does this do to me? After your account is labeled as a charge off, your credit will be drastically hurt. This can impair you in all sorts of ways. You may be prevented from getting a house, an apartment, a car, and a job. You will als
