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| What The Term "Charge-Off" Means |
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The term "charge-off" means that the creditor or lender has written off the debt
and will no longer pursue payment. However, this charge-off notation will remain
on your credit report for seven years. In addition, some charged-off accounts may
be sold to collection agencies at a later date, allowing the collection of the debt
to be reactivated with this reactivation notated on your credit report-which may
start yet another seven-year cycling-off period.
It might be worthwhile to contact the creditors on accounts that are presenting
problems and discuss the possibility of setting up new payment plans. Even though
charge-off notations can remain on your report for seven years, new notations that
you have paid off these debts will also appear. And current and future credit
grantors would likely take a positive view of making such an effort to pay off old debts.
For related information on credit reporting periods, you may wish to visit our
web site at
www.creditmatters.com/expert/report_periods.asp.
Copyright © 2000, CreditMatters.com
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