While a charge-off may sound like a solution to an unpaid debt, it indicates that your creditor determined that you are unlikely to repay a delinquent account. In turn, the creditor closed your account and reported a charge-off to the credit reporting agencies. As a result, a charge-off will appear on your credit report indicating that you did not pay the outstanding balance and negatively impact your credit score.
At a Glance
- Delinquent credit accounts are subject to charge-off after 120 to 180 days of nonpayment
- Inability to pay is reported to at least one of the major credit reporting agencies
- Charge-offs are a negative mark of your credit report for approximately 7 years
- You are still responsible for the debt after a charge-off occ…
Read the full article at: https://www.forbes.com/advisor/credit-cards/what-is-a-charge-off/