What Is a Charge-Off
A charge-off occurs when a creditor writes off your debt as a loss after you fail to pay for 180 days. It's reported on your credit and significantly damages your score.
Charge-Offs vs Collections
After a charge-off, the account may be sold to a collection agency. You may owe both the original creditor and the collector, depending on your state laws.
Resolving Charge-Offs
You can negotiate with creditors to remove charge-offs in exchange for payment or settlement. Consider getting settlement offers in writing before paying.
Timeline for Removal
Charge-offs fall off your credit report after 7 years from the original delinquency date. Focus on building positive credit while waiting.