2006-12-25 02:28:34 · 4 answers · asked by CHRISTINA m 2 in Business & Finance ➔ Credit
A charge off is when you owe the credit card company ow whome ever money, you dont pay the loan, the company 'writes it off" and doesnt pursue payment.... not a good mark on your credit for sure.
an example would be if the amount you ow is not worth the company filing a lien or going to court, so they do the charge off.
2006-12-25 02:39:34 · answer #1 · answered by grapelady911 5 · 0⤊ 0⤋
On your credit report, say you had to fill for bankruptcy. Your lawyers and court case contacted those involved in the "charged off" ie (bill collectors held in your bankruptcy) This terms means the lender with this charged off has either:
1) Accepted the default payment of your account and closed the account.
2) Accepted the terms of the courts decision, and closed the account.
This will continue to show up on your credit report for at "least" 7 years after the fact.
Once an item has been charged off, most new lenders view this a judgment , that you at least contacted your lenders and make payments or your lenders accepted the courts ruling, and they may not view this as an issue when you want to regain control of your credit.
90% of the time if you try to make a finance type payment when buying something the lender will ask if you "Have you filled for a bankruptcy?.. and has it been charged off"
All of use must learn to cut back on our spending, Granted companies spend millions to entice us to spend. Teach your family to only buy items absolutely necessary. This will help you have a better life and stay out of credit issues later.
Foot Note: As of 12/24/06 our house hold is now debit free. It took us 10 years to complete this task. Hard work, watching our spending, getting rid of credit cards, select one credit card with fixed interest rate, and reduce the amount of checks we write. (often the checks we write bounce) All these things helped us create a better credit.
2006-12-25 10:54:10 · answer #2 · answered by Not Applicable 3 · 0⤊ 0⤋
do you mean your credit report is showing an account as being charged off? that's not good, that means you were not willing to pay your bill.
2006-12-27 01:25:25 · answer #3 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
It means who ever you owed the money to wrote it off as an unrecoverable debt. (not good) or it has been on your credit for so long is does nothing either positive or negative just shows as charged off. Try to avoid those.
2006-12-25 10:37:49 · answer #4 · answered by shaman 4 · 1⤊ 0⤋