Credit Events
Charge-off
What it means
When a creditor writes off a debt as a loss, usually after 120-180 days of non-payment. A charge-off does not erase the debt. You still legally owe it. The creditor usually sells the account to a collection agency. A charge-off is one of the most damaging items on a credit report and stays for 7 years.
Covered in the free course
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