I applied for a car loan and was denied because they said I had “write-offs” on my credit. I’ve checked my credit report every year and I have never seen anything about write-offs there. What are “write-offs” and how will I know if I have any on my credit report?

A credit card issuer will write-off, also known as charge-off, an outstanding debt on your credit card when you have made less-than-minimum or no payments for more than 180 days past due. This means the issuer declares it a loss for the company and will effectively close your account, but you are still responsible for paying off your debt completely or else the issuer will likely send a debt collection agency after you.

Write-offs will remain as a negative entry on your credit report for seven years starting from the 180-day period you were written-off by the issuer after your last on-time payment, and will negatively impact your credit score and thus your ability to get approved for a loan.

You may not have noticed a charged-off account because your credit report won’t always explicitly list it; typically credit reports list the details of accounts through a numbered or shorthand code. For example, on a TransUnion report, the column titled “Type of Account & MOP” means MOP=Method of Payment, and any entries listed as “09” means “Bad Debt; Charged-off Account”. Look through your credit report thoroughly and read the details on your credit card accounts, and notify the issuer if you have been written off and think there has been a mistake.

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