I'am having problems with my credit report and the last thing I need is to make a new error, so I need to be aware of this!
2006-08-11 13:38:38 · 7 answers · asked by Erick Ramirez 1978 2 in Business & Finance ➔ Credit
A charge off is a profit and loss account. Meaning your creditor was not allowed or unable to garnishee, repossess or otherwise effect collection. It will remain on the credit bureau from 2 to 7 years unless the creditor has a gripe and reenters it. If the creditor obtains a judgment , it's good for 21 years. the creditor can wait by putting you on a watch list and gets a report every time you apply for credit, He can speak to the people where you applied to get residence and job info to garnishee in all but 2 states
2006-08-11 14:20:39 · answer #1 · answered by ? 6 · 0⤊ 0⤋
A charge off is when you owe something to a company (be it a bill or some kind of financial institution) and you do not pay it within a certain time frame...the company then "charges off" your account and usually submits you to some form of collections (and in the case of banks-they submit you to what is called ChexSystems, a place where you cannot open an account at any bank for seven years...kind of like a bankruptcy).
This is not a good thing for your credit..it is basically saying that you are unable to pay what it is you owe. The only thing I would recommend is getting it paid right away and hopefully the collection agency can remove you from their records...but your credit may still be affected until you build it back up again.
Good luck as this is not an easy thing to do
2006-08-11 13:57:08 · answer #2 · answered by vdubbchick 4 · 0⤊ 0⤋
A charge-off is when a lender formally determines that they will not be able to collect the money owed to them by the person who borrowed the money. It reflects poorly on your credit report becasue it shows that although you've promised to pay a lender for a loan/credit card, you couldn't fulfill this obligation. It shows that you're a finanical risk because if you couldn't repay someone else, you may also not pay another lender.
2006-08-12 02:15:08 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A charge off is when a creditor has given up on collecting on the debt and on their books they have chalked it up as a loss. It hurts your credit because you are a risk to anyone else that would possibly loan you money. You need to contact your creditors and set up payment arrangements to get this off of your credit.
2006-08-11 15:30:32 · answer #4 · answered by Anonymous · 0⤊ 0⤋
a charge off is when the borrower does not pay the full balance and the lender has to write it off as a loss
2006-08-11 13:46:29 · answer #5 · answered by caddy girl 3 · 1⤊ 0⤋
A charge off is an uncollectable debt..You don't pay your debts, it hurts your score.
2006-08-11 13:42:57 · answer #6 · answered by Q.S.G 3 · 1⤊ 0⤋
Pay the debt if it's legit.
2006-08-11 13:45:20 · answer #7 · answered by snvffy 7 · 1⤊ 0⤋