What is a Charge Off on Your Credit Report?

A charge-off is a debt that is deemed uncollectible by the original creditor and is subsequently written off. Charge-offs are classified as bad debts on the creditor’s income statement and are removed from the balance sheet. When a creditor charges-off your account, it’s declaring your debt as a loss for the company. The creditor then usually sells or assigns the bad debt to a collection agency.

READ MORE

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s