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| *Ostroff, Fair and Company>>>Credit |
I was wondering what does it mean when it says your acct. charged off? |
I am 23 and want to clear up my credit but I don't know where to start. Charge off is a accounting term that simply means that the company has given up on collecting and written the account off as a loss. Doe's not mean that you do not still owe it. They will then sell it to a collection company and they will come after you. The collection activity will also show on your credit report. Call and try to make arrangements to pay it before it goes to a collection company, this will save your credit score. The delinquency will still show but it will read as paid in full with $0 balance that way. Source(s): Finance Manager for over 7-years. That means your account is passed due more than 180 days. Credit card company wasn't able to collect the money from you and they charged off as a loss. They then sold your account to a third party (collection agency) sometimes for 30 or 50 cents on a dollar. The collection agency will aggressively go after you. On your credit report, it will show that you're delinquent on your payment even if you agreed to make payment through that agency. It means that the creditor was unable to collect payment from you. An account status such as this is detrimental to your credit, as I'm sure you've found considering that you are trying to clean up your credit. I would contact the creditor (who you borrowed the money from) and see if you can make any repayment arrangements. If you are able to, once you paid the debt the creditor should change your rating to paid; although it will still reflect the lateness of the payback. |
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