Definition of a Charge Off – a charge off is usually associated with a consumer credit account and is something that happens when the debtor becomes severely delinquent on an account.

Here is the path of a charge off:

• debtor stops paying
• credit tries to collect with “in house” collection efforts
• time passes and creditor gives up believing collection is impossible
• creditor charges off debt and sends it to a collection agency
• the creditor gets a tax break for any amount that was charged off

If you are a consumer and have charge offs, your credit history is probably severely damaged. (This is what happened with two of my credit cards. I was twice rejected for auto loans because of my two charge offs).

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You can try removing charge offs yourself by way of a credit dispute. Or, you can wait seven years for the information to automatically fall off.

Which do you prefer. Get a FREE credit consultation with credit repair experts by calling 1-800-298-4297