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What is a credit card charge off?

asked by rst812 (10)

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Tags:  money  what is

answers

A credit card charge off is when a credit card company agrees to wipe your credit card balance clean so that you owe nothing. Sometimes this can be negotiated if you pay a certain percentage of the balance.

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posted by olive8 (641)
7 votes

It is when a bank claims your account as "bad debt" on their books after no payments have been received for 6-12 months. They close your account and report it to the credit bureaus. This is bad for your credit but not the end of the world. You will still owe the money to the bank.

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posted by Dface56 (87)
7 votes

This is when the credit card company "writes off," or stops trying to collect, a debt. The debt might still be sold to another company, however.

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posted by John (7910)
7 votes

A credit card charge off is basically where the company does not believe they will get paid back the amount that the customer has charged.

6 votes

When a credit card company declares your debt as a loss for the company it is written off their books as a charge off. It can negavitely affect your credit.

5 votes

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