Raleigh Finance

Jun 21 2018

What Does “Charge off” Mean on Credit Report, Experian, what does credit report mean.#What #does


What Does “Charge off” Mean on Credit Report

Dear TPA,

“Charge off” means that the credit grantor wrote your account off of their receivables as a loss, and it is closed to future charges. When an account displays a status of “charge off,” it means the account is closed to future use, although the debt is still owed.

The credit grantor may continue to report the past due amount and the balance owed. If you pay the account, the status will reflect as a “paid charge-off.”

The charged off account will remain on the credit report for seven years from the original delinquency date of the account, which is the date of the first missed payment that led to the charged-off status.

Most lenders sell their charged off accounts to a collection agency for a percentage of the account’s value. In that case, a new account will be reported from the collection agency that owns the debt.

You can no longer pay the original lender, which is no longer associated with the account, but must deal with the collection agency. Again, if you pay the debt, the status will be updated to “paid collection.”

Both the charged off account and the collection account will be deleted at the same time based on the original delinquency date of the debt.

Thanks for asking.

Review Your Free Experian Credit Report Today

Good credit begins with knowing where your credit is today. Get started with your free Experian Credit Report, updated every 30 days on sign in. No credit card required.

Related Articles

Can a creditor still garnish your wages even though the account is showing “closed” on my credit report? The account shows as, “Charged off as bad debt .

I have two charge offs on my credit report from two different credit cards. Is it possible to get the credit card companies to remove the

I had a 30-day late payment in April 2011 and one 90 days late in September of 2011. When would the seven-year rule start? April or September? –

I had a car payment that was seriously delinquent in 2015. In January of 2016 I brought the payment current, and the monthly payment has been paid

Social Security Number Used to Open Credit Cards

Inquiries from Utilities on Your Credit Report

Written by admin

Leave a Reply

Your email address will not be published. Required fields are marked *