Charge-Offs 101
5 min read
A charge-off is an accounting move
After ~180 days of non-payment, a creditor may 'charge off' the debt — declaring it a loss for accounting purposes. Important: you still owe the money, and the account can still be sold to collectors.
Reporting rules
A charge-off can generally remain on your report for up to seven years from the date of first delinquency. The balance, status, and dates must be reported accurately — inaccuracies are grounds for a dispute.
Paths forward
Options include negotiating a settlement (get everything in writing), requesting a goodwill adjustment after paying, or disputing genuinely inaccurate details. Each has trade-offs worth understanding before you act.
Want this explained for your situation?
The AI Credit Coach can break any of this down further and help you build a personalized plan.
Ask the AI Coach