Charge-off – What does it imply?

I checked my credit report and found that one of my accounts have been charged-off by the creditor. What does it mean? What Should I do to remove it? Can it be removed at all?

3 Answers

Charge-off implies that the delinquent debt will be reported by the creditor as his loss while filing tax returns. Creditor declares that he has not been able to collect the debt and is writing it as a bad debt. But he still has the full right to collect the debt. He may assign the account to the third-party collection agency for collecting the debt. 

You'll have to negotiate with the creditor/collection agency and pay off the account in full. Once the account has been repaid, then the account status will be updated as "Paid Charge off". It will be there on your credit report for 7 years.

Charge off is simply an accounting term whereby your debt is removed from the "good" debt books to the "bad" debt books.

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Usually negative items will remain on your credit report for 7 years from the date of your first default. If you are not able to repay your debt, then the creditor may report your account as charge-off on your credit report. If you want to remove it from your credit report then you can make a written request to your creditors to update your account status after repaying the debt and remove this item from your credit report purely out of goodwill. Bur it depends on their discretion whether or not to accept your request. I hope the following links may help you in this regard:”

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