Account Terms
Charge-Off: Definition
A declaration that a debt is unlikely to be collected.
Definition
A charge-off occurs when a creditor writes off a debt as a loss after extended delinquency (typically 180 days for installment loans, 120 days for revolving accounts). The account is transferred to charge-off status but the consumer still owes the debt. Charge-offs remain on credit reports for 7 years from the Date of First Delinquency.
Examples
Account Status 97 indicates charge-off
Usage Notes
- Does not eliminate the debt obligation
- Account may be sold to collections
- One of the most severe negative marks on credit
Related Terms
More Account Terms
Account Status
A code indicating the current condition of an account.
Account Type
A code specifying the type of credit account.
Account Number
The unique identifier assigned to a credit account.
Amount Past Due
The total amount currently overdue on an account.
Current Balance
The total outstanding balance on an account.
Credit Limit
The maximum amount of credit available on a revolving account.
Highest Credit
The highest balance ever recorded on the account.
Original Loan Amount
The initial amount borrowed on an installment account.
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