CloudsCreditRepair™ FAQ

What is a charge-off?

A charge-off is the accounting designation a creditor uses when an account becomes 120–180 days past due and is written off as a loss, but the debt is still owed.

Explanation

A charge-off is one of the most damaging items on a credit report. It generally remains for seven years from the original date of first delinquency.

After charge-off, the debt is frequently sold to a collection agency or debt buyer, which can result in a separate collection tradeline appearing alongside the original charge-off.

Examples
  • Unpaid credit card balance written off after 180 days
  • Auto loan deficiency balance after repossession
  • Personal loan no longer being collected by the original lender
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