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corvettevalley

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WHAT DOES CHARGED OFF MEAN

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charged off means bad news for you

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Charged off is the same as "written off", meaning they value the debt at zero, because the chances are so low they'll get paid that it's not worth the effort to collect it.  However, your legal liability has not been canceled, and charged-off debt may be turned over or sold to a collection agency.  Assuming that the debt is valid (and the statute of limitations has not passed), they can sue you and obtain a judgement.

You are stuck with this black mark on your credit report for 7 years, though its impact lessens over time.  You can choose to pay off the charge-off, and although it won't directly help your credit score, lenders may see this as a positive move on your part.  If you don't pay and the creditor or collection agency sues and wins a judgement against you, that will be reported for 7 years from when the judgement was issued.

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