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.

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Credit Repair: Dealing With Debt Collectors

Dealing with debt collectors is an art – just as is the way that they attempt to deal with you. Your credit rating is important, and they know that. Professional debt collectors spend every day using techniques that are proven to get results for them. They will hone in on your weaknesses if you show any. It is your credit rating at stake any time that you are dealing with a debt collector. So, let’s learn how to handle these aggressive money mongers:

The first issue at hand is for you to understand your rights.

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White House Gets It Wrong: Credit Monitoring Most Effective Tool for Detecting ID Theft, Not Credit Scores

The White House issued a press release commending the banks and credit unions that are giving away free FICO and VantageScore credit scores to their customers. Oddly enough, though, the release suggests that “one of the best early indicators of identity theft” are these free credit scores. And while getting access to your credit scores is great, they’re terrible and ineffective at alerting consumers that they may have been a victim of identity theft.

To suggest that getting monthly access to your credit scores will “help you spot identity theft” underscores a lack of understanding about credit scores….

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