What is a charge-off?

What it means when a lender charges off a debt, how long it stays, and the reporting errors to look for.

What it means

A charge-off is when a lender writes off a debt as a loss, often after about 180 days of missed payments on a credit card. It does not mean you no longer owe the money.

How long it stays

A charge-off can stay on your report for seven years from the date you first fell behind (the date of first delinquency). Paying it does not remove it, but it will update to show paid.

If the debt was sold

If the original lender sold the debt to a collector, the original account should show a $0 balance, and the collector reports the balance instead. The same debt should not show a balance twice.

Errors to look for

A missing date of first delinquency, a balance still showing after a sale, wrong dates, or a balance that does not match what you owe are worth disputing.