Charge-off
A charge-off is when a creditor declares a debt unlikely to be collected and writes it off its books, typically after about 180 days of non-payment. The account is marked as a charge-off, but you still legally owe the money.
Why it matters
A charge-off is a serious negative mark that lenders can see on your credit report for about seven years, and it signals to future lenders that an account went unpaid.
Example
A credit card balance goes unpaid for roughly 180 days; the issuer charges it off, the account shows as a charge-off on your report for about seven years, and the balance is still owed.
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Educational only — not financial advice. No guarantees.