JU21

What Is A Charged Off Account? Many people look at their annual free credit report and see notations such as “charge off” or “account has been charged off” and wonder what exactly that means. Typically when you stop making payments on an account it will go... More

What Is A Charged Off Account? Many people look at their annual free credit report and see notations such as “charge off” or “account has been charged off” and wonder what exactly that means. Typically when you stop making payments on an account it will go 30 days late, 60 days late, 90 days late and then 120 days late. After that point many credit card companies will close the account and mark it as a charge off. It is written off as bad debt and then it is set through the collection process. Some credit card companies will handle that process internally and send settlement offers in hopes that you will settle the debt at a smaller amount. If these notices are ignored it is quite possible that they will turn the account over to an Attorney or Law Office and they may pursue a Judgment against you for the full amount plus court and legal fees. This does double damage to your credit report as it will show the charged off account as well as a Judgment. You want to try to avoid this Less