What is a credit card charge off?

Answer by  olive8 (911)

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.

Answer by  Dface56 (90)

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.

Answer by  John (9008)

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.

Answer by  tamarawilhite (17883)

A credit charge off is when the company has written off the debt as a loss because they have given up trying to collect it.

Answer by  jenniev (206)

Basically if you run a credit card off and dont pay the bill, they will eventually charge it off, so they get a tax write off.

Answer by  bassmaster76 (62)

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.

Answer by  joantheresa (1421)

A credit card balance, without payment for six months, lets the company "charge it off." They no longer carry it on their books, but still try to collect it.

Answer by  tamarawilhite (17883)

A credit card charge off is when the credit card company has written off the debt as bad. They have now decided that they will not be paid. They have written it off as a business loss that can now be deducted on their taxes. You may now owe income tax on the charged off debt if it is forgiven.

Answer by  brian7754 (243)

A card balance is charged off when the card company writes the balance off as bad debt and can no longer consider it an asset. You still owe the money, but it's reported on your credit report. They'll often take a minimum payment to avoide a charge off.

Answer by  MichaelMoroschan (120)

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.

Answer by  typo23 (45)

Charge Off is when creditors mark unpaid balances as bad debt. After 6 months they don't count it as an asset. You still owe them and they will attempt collection.